Topic: Bitcoin and paying Tax - page 4. (Read 3935 times)
The tax regulation of Bitcoin depends from county to country. I think in most cases you don't have to pay tax on Bitcoin itself but you are obliged to pay taxes when you convert it to fiat money on exchangers or similar, so I think majority of people do pay taxes on transactions like this and governemnts have their share of it.
you have to be extra careful about matters like this, seeking advice in topics like these is not so wise because you may think you shouldn't pay taxes with bitcoin and read it on this topic too but noone around here has the information needed and in fact government can prosecute you for tax evasion.
Well whatever or however bitcoin transaction evade taxes, users like us are not exempt at all. With all the value added tax on the items we bought, we are still giving tax to the government. even here in my country there is this extended value added tax that even makes these taxes higher lol.
Several rich guys are already practising several tricks and ways to bypass bigger amount of government task in fiat transaction also from past several years and even if government find someway to implement tax on bitcoin there will be always way for those who wasn't used to pay tax before in fiat one.
regardless - theres going to be methods of avoiding it for those who dont use the cash deposit route.
anyone who does most of their stuff in person - cash in mail - will have mules which avoids all this.
anyone who does most of their stuff in person - cash in mail - will have mules which avoids all this.
we are the bitcoiners and it is true that government can not take tax from us but still government has many diffrent ways to get that tax because ultimatly money will pass to someone who has to exchange the btc with the faint and at that point government will charge the tax. we have just lowered the taxasion not completly closed it
if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin
It's unlikely for the government to ban the crypto currency but yes they will sure do impose several rules and eventually taxes. Some countries government has already imposed some laws and some for trying. But for some big governments to impose laws it will require a large amount of people using bitcoin on a frequent basis only then governments will charge taxes. 
... Also, I'm utterly curious why you are trying to confuse the readers. Weed is legal in Washington state, you can openly buy it if you are over 21 and are going to consume it in the state. So taxing weed is quite in line with it being legal...
I am not trying to confuse anyone, but it is confusing. Weed is illegal in all 50 states. That is the federal law and if a federal prosecutor wanted to he/she could go after a person for smoking. Even though it is legal at the state level. It's an unusual situation.
I got your point. You say that weed is illegal in all 50 states by a federal law, and, at the same time, it has been made legal at the state level. In this way, it all boils down to whether a federal prosecutor can actually enforce the federal law. If he can't (or doesn't want, which is essentially the same), then the given state law would be de facto above the federal one. Though I'm not surprised really. I don't know if that's true or not but I've heard a story about some US court banning the law of gravity...
Nevertheless, if weed is legal in a state, there is nothing unusual if it is taxed in that state
There are many ways from which government can atleast get tax on fewer bitcoin related deal within their country, one of which is trying to include tax in all bitcoin sells and buys in trading platforms which are connected to that countries local banks. As well as they should encourage the uses of bitcoin and provide offer of smaller % of tax on purchases with bitcoin than with other fiats this will encourage people to use bitcoin in local stores whose record can be recorded easily etc.
... Also, I'm utterly curious why you are trying to confuse the readers. Weed is legal in Washington state, you can openly buy it if you are over 21 and are going to consume it in the state. So taxing weed is quite in line with it being legal...
I am not trying to confuse anyone, but it is confusing. Weed is illegal in all 50 states. That is the federal law and if a federal prosecutor wanted to he/she could go after a person for smoking. Even though it is legal at the state level. It's an unusual situation.
if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin
I think if the government still forced to give taxes to the bitcoin will not run both because someone could manipulate their bitcoin address because bitcoin is anonymous so that the government will not know if you have a lot of money in another purse? bitcoin tax will not be perfect I was wondering, if crypto-currency takes off, and a large percentage of the world use it and then decide to stop declaring all income and stop pay taxes, how will governments build roads, support public schools etc? Won't this action raise taxes for the few that pays it and cause total havoc?
Don't get me wrong, I am totally against banks and the idea of keeping all your money in banks (if all bank customers only withdraw 3% of their savings, most banks will be bankrupt, so I am against banks) but what about government that cannot with crypto-currency determine someones income and subsequently cannot tax people to perform basic government duties?
I think what you say is hard to solve right now. If there is no solution for this problem, crypto-currency can not be accepted. In the future, if bitcoin become a world currency, there will be no government anymore, i guessDon't get me wrong, I am totally against banks and the idea of keeping all your money in banks (if all bank customers only withdraw 3% of their savings, most banks will be bankrupt, so I am against banks) but what about government that cannot with crypto-currency determine someones income and subsequently cannot tax people to perform basic government duties?
if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin
Yeah me too i don't really get the full amount of bitcoin im exchanging. Although i think it's more of transaction fee for the exchanger rather than tax 
bitcoin here is not that known yet so i don't think bitcoin would be taxed here for the next couple of years 
if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin
I was wondering, if crypto-currency takes off, and a large percentage of the world use it and then decide to stop declaring all income and stop pay taxes, how will governments build roads, support public schools etc? Won't this action raise taxes for the few that pays it and cause total havoc?
Don't get me wrong, I am totally against banks and the idea of keeping all your money in banks (if all bank customers only withdraw 3% of their savings, most banks will be bankrupt, so I am against banks) but what about government that cannot with crypto-currency determine someones income and subsequently cannot tax people to perform basic government duties?
I think what you say is hard to solve right now. If there is no solution for this problem, crypto-currency can not be accepted. In the future, if bitcoin become a world currency, there will be no government anymore, i guess Don't get me wrong, I am totally against banks and the idea of keeping all your money in banks (if all bank customers only withdraw 3% of their savings, most banks will be bankrupt, so I am against banks) but what about government that cannot with crypto-currency determine someones income and subsequently cannot tax people to perform basic government duties?
Was their any stipulation in the Satoshi White paper where it states that Bitcoin was developed to assist in Tax evasion? Nope. A lot of people are using Bitcoin in a regulated environment. < Coinbase, BitPay, Circle, etc. > and these people's accounts are linked to their bank accounts. They pay their taxes and they operate within the laws of their countries. The rest, will bring the IRS onto themselves, when they are audited and it was found that they are using Bitcoin or any other Crypto currency to bypass taxes
I'm afraid that the rest reside in China, and they would just laugh in the face of the IRS. I don't know how Bitcoin is taxed in China, if ever (everyone is welcome to chime in on this matter), but if the Russian government finally accepts Bitcoin as a foreign currency, no one will be paying taxes on it just like no one had been paying anything before. Since exchange operations with a foreign currency can be conducted only by institutions that have a Central bank license (read banks), cash and non-cash currency exchange is officially considered as an activity that can be undertaken only by banks in Russia...
But no one actually follows these rules in respect to, say, US dollars, and even less would do in respect to Bitcoin
Was their any stipulation in the Satoshi White paper where it states that Bitcoin was developed to assist in Tax evasion? Nope. A lot of people are using Bitcoin in a regulated environment. < Coinbase, BitPay, Circle, etc. > and these people's accounts are linked to their bank accounts. They pay their taxes and they operate within the laws of their countries. The rest, will bring the IRS onto themselves, when they are audited and it was found that they are using Bitcoin or any other Crypto currency to bypass taxes. ^smile^
Bitcoin is a P2P payment system, not a system developed to assist in tax evasion. ^hmmmm^
Bitcoin is a P2P payment system, not a system developed to assist in tax evasion. ^hmmmm^
Like every source of income, bitcoin is taxed. Either directly by VAT or indirectly with your yearly income sheet. There is no way you can run from taxes.
Every governement uses tax as a milk cow to generate income for (sometimes, bogus expenses).
Every governement uses tax as a milk cow to generate income for (sometimes, bogus expenses).
Not yet you cant avoid but do you really think that will last? Ask yourself what keeps the gov going and you should find the answer is we have no better options as yet.
Like every source of income, bitcoin is taxed. Either directly by VAT or indirectly with your yearly income sheet. There is no way you can run from taxes.
Every governement uses tax as a milk cow to generate income for (sometimes, bogus expenses).
Every governement uses tax as a milk cow to generate income for (sometimes, bogus expenses).
Not yet you cant avoid but do you really think that will last? Ask yourself what keeps the gov going and you should find the answer is we have no better options as yet.
I was wondering, if crypto-currency takes off, and a large percentage of the world use it and then decide to stop declaring all income and stop pay taxes
How is this different than your job paying you in cash?Your employer has to declare it, you have to declare it, and your payslip has all the details. Government knows.
If your boss decides to pay you in Bitcoin, none of this changes.
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