Silk Road forums

Discussion => Legal => Topic started by: dontek on October 02, 2013, 11:03 pm

Title: Claiming BTC losses on next years taxes...
Post by: dontek on October 02, 2013, 11:03 pm
Gonna itemize and put a theft claim. Tell the IRS the FBI stole my goddamn BTC with no valid reason other than it was sitting in a SR wallet but not all items on SR are illegal.
Fuckin assholes.
Title: Re: Claiming BTC losses on next years taxes...
Post by: Sir William Wonka on October 02, 2013, 11:22 pm
Agreed.  Im calling my congressman also... FBI has my twenty bucks
Title: Re: Claiming BTC losses on next years taxes...
Post by: Rastaman Vibration on October 02, 2013, 11:35 pm
Bad idea, guys
Title: Re: Claiming BTC losses on next years taxes...
Post by: Sir William Wonka on October 02, 2013, 11:52 pm
Of course I am not doing that but its still an interesting thought.
Title: Re: Claiming BTC losses on next years taxes...
Post by: shocky on October 03, 2013, 05:13 am
YEAH, I had quite a bit of money on my account, but I only sold poetry and short stories.
I'm sad. =<
Title: Re: Claiming BTC losses on next years taxes...
Post by: LetMyPeopleGo on October 04, 2013, 09:30 am
LOL! This is a funny, yet interesting idea. In a sense, our BTC WERE stolen. There is absolutely no proof that our BTC were being used for illegal purposes. Just because they are sitting on a website that sold illegal goods (but also LEGAL goods) doesn't mean they were used for illegal goods. This is funny, I'm subbing this thread to see where this goes.
Title: Re: Claiming BTC losses on next years taxes...
Post by: maple on October 04, 2013, 01:13 pm
That is a good point...curious as to where this will head, if it heads anywhere.
Title: Re: Claiming BTC losses on next years taxes...
Post by: dontek on October 04, 2013, 02:27 pm
The original post was kind of tongue in cheek a joke. Could it be done?  Probably. But one would be opening themselves up to major scrutiny and I am sure the feds would want you to prove what you lost and how you accumulated so many btc.

However,  just throwing this out there as an idea...according to the FBI,  they state that 30% of SR users were US based. So what about vendors/buyers who are based outside of the United States that never did any dealings within US borders? Those outside of the jurisdiction of the FBI may have a good argument to file an international suit against the US government and the FBI for release of the funds seized. The FBI and the US government are not the world police. Simply because the alleged "head" of SR is a US citizen,  how can that give them the right to seize funds of foreign users when the servers weren't even on US territory.

I dunno. I am not schooled in international law, and I think the only way this could and would happen would be if there are some "heavy hitter vendors" outside of the US who have access or connections to great legal representation.

It would be very interesting to see a foreign member or "alliance of members" step up to the US Government and tell them to give them their goddamn money back or face an international lawsuit.
Title: Re: Claiming BTC losses on next years taxes...
Post by: Synthiotics on October 04, 2013, 05:05 pm
Good idea.

I think that would fly if you are one of those rare dealers actually reporting their drug income.
Title: Re: Claiming BTC losses on next years taxes...
Post by: PlutoPete on October 04, 2013, 06:13 pm
I've got an appointment with my solicitor on Monday, i certainly intend to see what can be done :)
The cash i had seized has already been returned to me so now i want my coins back :)
Any that i can't get back will definitely be down as a loss on my tax return.
Title: Re: Claiming BTC losses on next years taxes...
Post by: AlternateReality on October 04, 2013, 06:17 pm
I don't think BTC is even marked down as recognized currency in the US. You're gonna have a hard time getting it back.

And even then don't be surprised if you have police at your door with a warrant to search + confiscate all computer equipment. You'll essentially be admitting that you used SR to purchase drugs.
Title: Re: Claiming BTC losses on next years taxes...
Post by: FollowIcculus on October 04, 2013, 06:53 pm
I don't think BTC is even marked down as recognized currency in the US. You're gonna have a hard time getting it back.

And even then don't be surprised if you have police at your door with a warrant to search + confiscate all computer equipment. You'll essentially be admitting that you used SR to purchase drugs.
The only thing you would be admitting is that you had BTC in an SR wallet.  That doesn't prove that you purchased anything.  Also many things on SR are not illegal so even if you did purchase something you wouldn't necessarily have even broke the law.  Not saying claiming your BTC losses on your tax return is a good idea, but your comment is just flat out wrong.
Title: Re: Claiming BTC losses on next years taxes...
Post by: dontek on October 04, 2013, 09:16 pm
I actually have council looking into a few things right now and should hear back by Monday. I will keep in touch with you all to see what he says the options are about petitioning and/or filing suit for release and return of any seized funds.
First thing will need to verify though is that the US feds are in possession of the escrow/wallet btc and that they have possession of the server on which they are housed. With reports of some people getting funds to their backup emergency addresses, I assume its safe to say that there still is no real confirmation as to where those coins are presently residing.
Title: Re: Claiming BTC losses on next years taxes...
Post by: Just Chipper on October 04, 2013, 09:32 pm
I don't think BTC is even marked down as recognized currency in the US. You're gonna have a hard time getting it back.

And even then don't be surprised if you have police at your door with a warrant to search + confiscate all computer equipment. You'll essentially be admitting that you used SR to purchase drugs.

Until just recently you are correct. A Texas Supreme Court Judge has ruled that "decentralized virtual currency" is in fact a form of currency. This is not to be confused with "legal tender" which is only the USD atm in America.

I believe it is a silly idea unless you are outside of America's reach (no extradition treaty) and/or never ordered illegal items off The Road.
Title: Re: Claiming BTC losses on next years taxes...
Post by: KeyboardCats on October 06, 2013, 07:28 am
I live in Northern Europe and the BTC in my wallet was for products that I have prescription for. Through Silk Road I could get them at -70% the pharmacy price.

The responsible authorities have obviously acted beyond their authority or under a mistaken interpretation of the law. An unethical code of conduct. Now someone's to be sued. I want my money back at the currency it was when this happened which from what I remember was about $130/BTC. One way or another. It was no fortune that was stolen from me, but still totally unacceptable.
Title: Re: Claiming BTC losses on next years taxes...
Post by: CapnJack on October 06, 2013, 03:46 pm
Gonna itemize and put a theft claim. Tell the IRS the FBI stole my goddamn BTC with no valid reason other than it was sitting in a SR wallet but not all items on SR are illegal.
Fuckin assholes.

The IRS doesnt give tax deductions for theft
Title: Re: Claiming BTC losses on next years taxes...
Post by: DopeSneaky on October 07, 2013, 10:59 am
I live in Northern Europe and the BTC in my wallet was for products that I have prescription for. Through Silk Road I could get them at -70% the pharmacy price.

The responsible authorities have obviously acted beyond their authority or under a mistaken interpretation of the law. An unethical code of conduct. Now someone's to be sued. I want my money back at the currency it was when this happened which from what I remember was about $130/BTC. One way or another. It was no fortune that was stolen from me, but still totally unacceptable.

This. Love how these assholes can just walts in and grab everyones money without proving their intents.