Topic: Bitcoin and not Paying Taxes (Read 1213 times)

If you're working on a business  you e able to pay taxes.  In somehow bitcoin has only a transactions fee for transferring it.  You don't  need to pay taxes on bitcoin but you need to pay for a fee.

I did not see the video, because prior to watching it I expect a more detailed explanation about what you are talking? And your statement that they will catch you is absolute nonsense, because there are countries in this world where winnings from crypto currencies are tax free if you hold them longer than one year for example!

In my country, we are obliged to pay our salary taxes. There is a constitutional law and enactment against tax evaders or tax exemplary. At first, I was confused that the crypto enthusiasts are exempted against the law. I don't think that decentralization is a reason why we will not pay our taxes as long as we used crypto in order for as our income salary, it is a must that we pay our tax. Tax is an obligation of a citizen, it is for our economic development.

Federal government does not recognize bitcoin as currency. For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. At what sum total of cash do you need to claim taxes on bitcoin? All of it. The IRS states that even small income such as babysitting should be reported on your taxes. It’s safe to assuming every single dollar you profit on bitcoin is taxable.

It’s important to understand that you are only required to pay taxes on bitcoin when you turn it into cash. This obviously applies when selling your bitcoin at an online exchange or an ATM because you are receiving cash for your bitcoin. However, transactions made for purchasing goods or services is technically realizing a cash value for your bitcoin at the time you spend it. This means you’re required to pay taxes on the cash value of your purchase. This type of transaction is treated as normal income, not capital gains. So if you spend $100 worth of bitcoin to purchase something, you need to claim $100 of additional income on your taxes.

All bitcoin you purchase and hold for less than 1 years time and sold for profit is considered “short term gains” and is taxed as normal income. You will pay your full tax rate for a bitcoin investment under one year. This percentage depends on your normal tax bracket which is based on your income.

Bitcoin purchased and held for longer than 1 year is subject to capital gains tax instead of normal income tax rates. This means that you will be taxed 15% on the total profit from the selling of your bitcoin. If you buy $1000 worth of bitcoin and sell it for $2500, you have a $1500 capital gain which you will pay ~$225 in taxes on.

Be sure to keep your receipts for all your bitcoin transactions and purchases. If you are not sure what price you purchased your bitcoin at, you can always calculate the daily average price for bitcoin on that particular day. Be sure to reach out to a tax professional when possible.

yes...Just pay your taxes from every withdrawal, but it can be unrelevant advice, becouse of differences in a laws of different countries, lol

If there's no law base in your country about this yet - you probably should worry about that...

This is very simple, you need to pay your taxes, no one likes to pay their due taxes and even if I believe that the tax rate is very high in my country we really do not have a chance to do anything else, I know that there are a lot of people that think that they can use bitcoin to avoid paying taxes, but that is a very bad idea if you do that and the amount of money that you earn through bitcoin is significant then you will have to live the rest of your life always looking over your shoulder worried that at some point the tax authorities are going to catch you and put you in jail.

Why do even they catch those people who are using cryptocurrencies? it is just that cryptocurrency is decentralized and it doesn't mean it is not good to do. It is legal in some countries and it is used by many professional people so why do they catch people who uses it.

Taxes are bad in front but good inside sometimes. The government using these money to improve infrastructure and all the nation facilities of a country.

Well if you will just research about bitcoin, it is not register on the central bank of every country because government aer opposed on this so basically there are no taxes from bitcoin and the people who uses bitcoin doesn't pay tax anymore. And I think that is one of the reasons why government don't want bitcoin in there country.

Ive watched this video already and it makes a lot of sense. Sure there may be a few people who fly under the radar and get away with, but overwhelming majority of people are going to be in the youtuber's position. Lets not give the government that opportunity, I never understood why people evade tax seeing how the penalty is huge.

indeed government will find a way to take advantage of the bitcoiner that is with tax. but if not yet legalized they can not collect taxes. though for anonymous reasons, but i think government is more sophisticated. i am sure government will find a solution for this

In the end, government will find out about our assets. Its better to paying our tax because we get profits from cryptomarket. Not matter we hide our assets, I am believe government will find out because in digital world anything can be tracked

People who doesn't pay taxes but get their gains via cash, it's impossible to track them.
Anyway you can't get your funds to your bank without paying taxes at the first place as most of the banks will just refuse to take this payment and the payment will be returned to it's origin.

When people deals with large money, they usually know what the risk that they are taking and how to avoid getting caught.

I do not believe that earning cryptocurrency is not paying taxes because we have transactions fees by transferring our cryptocurrency to different wallet so how come they are saying that we do not have taxes because that can compensate as a tax.

I do not pay taxes with Bitcoin. But this is because I earn little. If I had large sums in crypto currency and I wanted to withdraw them into fiat money, then of course all taxpayers would pay, that there would not be any problems with the state and I could easily use them and make big purchases.

Bitcoin is not looking good with tax and even not feels good by hearing this. Paying taxes is only in fiat currency that is under government and government gets taxes for the well and goodness of people but they do not know what is best for the well and good of people. Bitcoin is designed for people and people should use and can use without paying taxes that is what Bitcoin is good for people due to the easiness.

Once bitcoin is exchanged with our regular currency, that will be the time we can pay taxes. Much more when we are going to use that money like for instance in buying goods or anything, there is already a tax once you pay, example the value added tax. If ever the government accept bitcoin, then I  am pretty sure there will be tax to be imposed.

but then if bitcoin legalized by government, i think government will look for a gap to levy taxes. but there is also benefit if tax is collected, because it means government has regulated btc, and investor feel free to invest in cryptos

I keep saying the same, but newcomers are too lazy to read more what we wrote here. There is always a way to skip regulations, some will be caught by governments but only the ones who don't cover tracks in the right way. I keep saying one more thing if someone is afraid from governments try to use some anonyms coins that guarantee privacy. You can use monero or some cheaper privacy coin, then buy bitcoin with that coin, send bitcoins to your wallet and who will knows that you have a bitcoins? Use VPN all the time, or have a special lap top and when you are out use it on some public network, skip everything that is connected to your name. But most of the countries in the world will be opened for bitcoin, so in the end moving to a bitcoin friendly country is always a good option if you ask me.