Explain it to me like im 5

[fredflinstone85]

Using coinbase to send funds. If I buy and send over $600 to sources, do I have to file taxes on it. I got mixed answers.

Even called coin base and got 2 different answers. 1 said yes. The other said no because sending is considered a gift.

Which one is it. For undisclosed reason I can NOT have this on my taxes.

 

[pigeonhed]

For your purposes BUYING or SENDING funds is irrelevant. This is NOT a tax issue for the buyer.

 

[fredflinstone85]

For your purposes BUYING or SENDING funds is irrelevant. This is NOT a tax issue for the buyer.

OK great to know. I'm new to bitcoin and this was stressing me out. When I first started everything was WU, sending money oversea saying I was buying car parts when questioned.

Thank you.

 

[Evom1]

What matters is if you cash out money you made, not if you buy and send

 

[JuiceJohn]

It depends,
Let me try to answer that:

When you buy and send funds through Coinbase, it's possible that you may be subject to taxes, depending on the amount and the purpose of the transaction. The amount at which taxes are owed can vary depending on your country's tax laws and regulations, as well as the type of transaction.

In the United States, if you sell or exchange cryptocurrency, it's generally considered a taxable event and you may be required to report it on your tax return.
But gifts,
It's possible that sending funds could be considered a gift and not subject to taxes, but also it depends on how much.

Coinbase transactions that don't result in a gain or loss are not taxable. - That's from their site.

It's a hole with two ends.

 

[fredflinstone85]

That

It depends,
Let me try to answer that:

When you buy and send funds through Coinbase, it's possible that you may be subject to taxes, depending on the amount and the purpose of the transaction. The amount at which taxes are owed can vary depending on your country's tax laws and regulations, as well as the type of transaction.

In the United States, if you sell or exchange cryptocurrency, it's generally considered a taxable event and you may be required to report it on your tax return.
But gifts,
It's possible that sending funds could be considered a gift and not subject to taxes, but also it depends on how much.

Coinbase transactions that don't result in a gain or loss are not taxable. - That's from their site.

It's a hole with two ends.

Is helpful. I'm in the US. So worried about that 600 limit but I'm sending it as a gift. I also am not cashing out. It purely how I buy my gear. I spent $550 last year. Planning on about $1000 max this year (likely 800ish). Average sent amount is $250. So about 3 to 4 transactions.

I buy and send instantly so not much loss/gain going on.

 

[JuiceJohn]

That

Is helpful. I'm in the US. So worried about that 600 limit but I'm sending it as a gift. I also am not cashing out. It purely how I buy my gear. I spent $550 last year. Planning on about $1000 max this year (likely 800ish). Average sent amount is $250. So about 3 to 4 transactions.

I buy and send instantly so not much loss/gain going on.

I guess you are going to be good, as long as it's not big numbers.

 

[jasonl]

Using coinbase to send funds. If I buy and send over $600 to sources, do I have to file taxes on it. I got mixed answers.

Even called coin base and got 2 different answers. 1 said yes. The other said no because sending is considered a gift.

Which one is it. For undisclosed reason I can NOT have this on my taxes.

Coinbase automatically generates and sends a 1099 form if you make $600 or greater on their platform annually but to my knowledge if you are just buying and immediately sending it off you would be ok not reporting it (ok in the sense that no automatic 1099 is generated - it may still technically need to be reported). It is cumulative so sending multiple transactions of $250 after having made $600 would still trigger it.