5 Things Bitcoin Owners Must Do When Estate Planning

When it comes to estate planning, very little has been mentioned about bitcoin. While bitcoin is subject to wills and revocable living trusts like any other asset, there are some special considerations. Most seasoned holders of bitcoin are aware of IRS Notice 2014-21. For those unaware, the notice holds that for US tax purposes, bitcoin is to be treated as property rather than currency. The notice is wrongheaded, foolish and probably was issued with intent to slow down bitcoin adoption. Nonetheless, we’re stuck with it until bitcoin adoption increases to the point where the IRS recognizes it as a currency. Much ink has been spilled about the more obvious consequences of bitcoin’s classification as property, namely: Whenever bitcoin is spent on goods or services, the spender must recognize taxable income or loss on the difference between tax basis (usually the price at which he acquired the bitcoin) and the fair market value of the bitcoin at the time spent. Bitcoin miners must recognize ordinary income equal to the fair market value of the bitcoin mined at the time of mining. If your employer pays you in bitcoin, such payments must be reported on your W2 and are subject to tax withholding in US dollars. Beyond these more obvious consequences, however, there are some hidden estate planning traps when it comes to the death or incapacity of a bitcoin account holder. To avoid these problems, here are five steps you need to take now in your estate plan. 1. Get your step-up in your estate plan, and watch your step Because bitcoin is property, when a bitcoin holder dies, the beneficiaries...

CoinPayments.net – Online Multi-Coin Payment Processor

Accept crypto currencies now Bitcoin, Litecoin, Doge, Darkcoin, PeerCoin and 55 other coins are featured with this service – meaning they touch base with whatever payments you want to make or accept on your website. But what is it? In a nutshell, CoinPayments.net acts much like PayPal – a platform which allows you to pay for goods and services without having to directly use your bank account or credit card information. With the surge of new cryptocoins on the web, you’d better keep an eye out on this service as it may be the place to go in the near future for online transactions. How CoinPayments.net Works It’s pretty easy – creating an account is free and you’ll only be charged when transactions are being made. There’s a low 0.5% flat fee on all transactions going in and out of the platform. This is a lot lower than the fees perceived by similar services. There are no other fees associated with CoinPayments.net, aside from the aforementioned flat fee. They provide you with all the tools needed to securely, easily and without any hassle implement their payment method on any website. Once the payment is reached for, the user will be directed to their website where they’ll need to confirm payment, depending on what coins they are using. What’s more – everything is encrypted thoroughly, so there’s no security risk whatsoever. This is very important in today’s day and age, especially when it comes to cryptocoins which themselves are a way to protect a user’s identity.   Over 55 Supported Coins You can accept them all, or just one; that’s your...

CoinMx Review – Buy Bitcoins with a Credit Card or Cash!

July 2015 update: Coin.MX has suspended its business due to charges brought against the owners. CoinMX is one of the leading Bitcoin exchanges allowing you to purchase Bitcoins with a credit card today. I’ve heard a lot about it and decided to finally try it for myself. This review will describe my personal experience with the exchange as well as different opinions of other CoinMX customers I’ve managed to gather from the web. CoinMX is an american based Bitcoin exchange based in Dallas Texas. It was established in early 2013 and has been accepting customers worldwide since. The first thing I’ve noticed is that other than a physical location there are no individuals shown on the website who actually run the site. This always sets off an alarm for me as many of the scams I’ve encountered have this characteristic. However I’m not going to eliminate an exchange based on that alone. Verification is a bitch, but things go smoothly after.. Once you create an account on CoinMX you’ll need to verify your identity. Unlike other exchanges CoinMX asks you to shoot a video of yourself holding a government issued ID (e.g. passport). This was a pretty awkward moment in my life as I’ve never been requested to shoot a video for verification but I complied. It took about 2 days to get verified but I believe that if you email them right after submitting the video you can get it done in less than 12 hours. Once I got verified things went pretty smooth. Deposits were timely and withdrawals of Bitcoins were instant. I remind you NEVER to leave Bitcoins lying...

Borrow and Invest Bitcoins with P2P Lending Services

The Facts BTCJam vs. BitLendingClub I wanted to compare BTCJam and BitLendingClub, there are many opinions out there and I have my own.  So above are the facts about the two different sites.  Below you will find my opinions on the two for Borrow and Invest.  Please provide comments on the what you think about the sites and please let me know if I missed anything. Look and Feel of the Sites – BitLendingClub is better, but its close Both sites allow you to easily invest and borrow in Bitcoin. However BitLendingClub, just seems to make it easier.  I prefer the design of BLC over BTCJam, but that is not to say the BTCJ is bad.  BTCJ does have issues with the Investments and Payment screens.  If you are a serial investor of loans like me, and you have been on the platform a while you rack up loans.  I have over 250 loans on my investments page and over 2100 payments pending on my payments page.  This has caused some serious issues with loading and timeouts.  BTCJ has a notes marketplace which allows you to sell your loans, BLC does not offer an equivalent.  The notes marketplace is difficult to find tough and I feel it should be more prominent. Information Verification – BTCJam but BitLendingClub is improving They both offer roughly the same verification process.  The way that the verification is tied to credit rating on BTCJam is better than BitLendingClub’s Identity Score.  This for me is hands down better at reviewing loans and can quickly weed out loans.  On BLC I feel I am mostly a coattail investor, looking...

Buy and Sell Bitcoins within your area With LocalBitcoins

Are you looking to do a localbitcoins buy or sell today? Perhaps you want bitcoins today and don’t want to go through all the hassle of getting an account set up on an exchange with localbitcoins. Or perhaps you want the added privacy that comes with doing a localbitcoins buy or sell in person. Or maybe you just like the idea that bitcoins are a decentralized currency, and believe trading them should also be decentralized. “The easiest way I have found to do a local bitcoin buy or sell is through Local Bitcoins.” –Jeremy West, founder Full review. The pros and cons of a localbitcoin buy or sell with Localbitcoins The Pros: The layout of Local Bitcoins is quite easy. From the main page, you can simply type in your city, the amount you would like to purchase or sell, and the payment method you prefer. A list of local bitcoin buy or sell options in your area will be returned (in my case, more than thirty local options were returned). There are a number of different ways to do a local bitcoin buy or sell through Local Bitcoins. The easiest way is to simply go to this page, which will take you directly to people in your local area who have posted ads for a local bitcoin sale or this page which will take you directly to people in your local area who have posted ads for a local bitcoin buy. You can shop through these pages for the best prices or the best reviews, or people who are selling or buying in the most preferred way for you. There are many different kinds of...

BTC Robot – is it a scam ? Real results from Bitcointalk Users…

BTC Robot Review Summary Pros: BTC Robot Easy to setup, lots of tutorials, support available. Cons: BTC Robot Doesn’t seem to act as described at all. Didn’t manage to get it to work on the Silver Plan. Conclusion: No, BTC Robot is not a scam, but I believe that it’s not as accurate as described on the BTC Robot sales page. Personally, I didn’t manage to make a profit out of it but I’ve used it for 2 weeks only. The good thing is that the 60 day money back guarantee makes it a no brainier for someone who wants to try it out any way and decide for himself. For more information about BTC Robot. Full BTC Robot Review Let me start right off the bat here by saying this is not another “look how great my profits are with BTC Robot”. This review aims to bring real live research to conclude once and for all if purchasing BTC Robot is worth your money or not. I’ve been into Bitcoin for almost a year now and just recently got my hand on BTC Robot and this was only after some INTENSIVE market research. My guess is that if you’re on this page you probably are looking into researching it as well, so hopefully I can save you some time. This review is not based on my personal experience only Instead of just trading with BTC Robot and then giving you my personal opinion alone I integrated into this review as many online BTC robot reviews I could find online. I picked out the best ones (usually from Bitcointalk.org) and the worst ones (usually for people...