Originally Posted by xNovax
15% is most of the miners profit.
15% of the gain after you deduct costs to acquire.
Have you not filed a tax return? Gross not = net
see my post here
or check http://www.irs.gov/taxtopics/tc409.html
If you have a net capital gain, that gain may be taxed at a lower tax rate than your ordinary income tax rates. The term "net capital gain" means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss for the year. The term "net long-term capital gain" means long-term capital gains reduced by long-term capital losses including any unused long-term capital loss carried over from previous years. Generally, for most taxpayers, net capital gain is taxed at rates no higher than 15%. Some or all net capital gain may be taxed at 0% if you are in the 10% or 15% ordinary income tax brackets. However, beginning in 2013, a new 20% rate on net capital gain applies to the extent that a taxpayer’s taxable income exceeds the thresholds set for the new 39.6% ordinary tax rate ($400,000 for single; $450,000 for married filing jointly or qualifying widow(er); $425,000 for head of household, and $225,000 for married filing separately).
Note: Net short-term capital gains are subject to taxation at your ordinary income tax rate.
Everyone that isn't working for a company and is a shareholder gets a K-1 , everyone independent contractor gets a 1099 and pays Social Security & such.
Hedge fund managers and the like pay only 15% due to only paying capital gains.
Also read http://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_attorney_here_are_my_answers_to_the/
and https://en.bitcoin.it/wiki/Tax_complianceEdited by AlphaC - 3/25/14 at 12:32pm