Tax Implications of MTGOX Repayments in the US

How do we report MTGOX repayments to the IRS? If you choose BTC/BCH, you get a mix of BTC, BCH, and cash. My thoughts (probably wrong) on how these should be taxed: BTC isn’t taxable since it wasn’t sold or swapped for fiat. What do you all think?

I’m not up on US tax rules, but in my country, lost funds come back tax-free. They’re saying payments will be around 400 bucks per bitcoin. All losses were verified, so I doubt taxes will apply unless you get more than what you lost. A tax lawyer would know better, though.

Best advice is to hire a tax pro or check the IRS site. We’re not tax experts, so just sharing what I know. You won’t get taxed just for receiving Bitcoin. But when you sell, that’s when capital gains tax kicks in. I say hold if you got refunds in Bitcoin and wait for the right time to sell.

In my country, we don't tax investments, just capital gains. Crypto isn’t even legal here, so no taxes unless we cash out. But Americans might face different rules. MTGOX victims getting refunds after so long should ask a lawyer for sure. When's the right time to sell? Bull market, for sure. But they are already in profit since they got BTC so cheap.

Hey redthreat, about reporting MTGOX repayments: BTC isn’t taxable since it wasn’t sold or converted. But if you sell it later, you’ll face capital gains tax based on its value when you got it. BCH is a different story; it’s treated as income at receipt, taxed based on its market value then. Cash is straightforward, just report as income.

^ Don’t trust online advice over real tax pros. One slip in your tax return and IRS will come after you. If you bought X BTC at price A and now you’re selling Y BTC at price B, the tax is really on the difference between what you lost when Gox crashed and what you gain now.