Bitcoin and Tax? - page 5. | Bitcointalksearch.org

Yakamoto

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Quote from: MIT2K on November 26, 2017, 11:39:02 AM

Whats the deal with Bitcoin and paying tax? How does it work?

It's mostly situational, really. Countries all have their own frameworks for charging taxes for Bitcoin, if at all. Most of the time they'll care about taxes from Bitcoin in the form of capital gains, so it isn't a struggle if you go with those numbers and pay them their dues, depending on what the various thresholds are for the tax brackets.

There is no one-size-fits-all and it all comes down to country's laws. You have to figure out that part on your own, unless you live in a country where everyone already talks about it.

MIT2K

newbie

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Quote from: rumexx on November 26, 2017, 01:15:23 PM

The blockchain which propels Bitcoin is anonymous in nature and it is not centralized which make it very difficult to collect tax from any transaction that is carried out in blockchain.

If you were using a TenX or Centra card i would understand that you are paying tax for a physical product at the time of purchase. But its interesting to what degree law is going to intervene and try to regulate with personal bitcoin income, especially if shops started accepting it directly? Its almost better to keep in the currency digital than convert back to fiat?

rumexx

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The blockchain which propels Bitcoin is anonymous in nature and it is not centralized which make it very difficult to collect tax from any transaction that is carried out in blockchain.

kafeelniazi

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Organic PR on Tier 1 media

It is funny and ironic that at one side countries are not accepting bitcoin as legal entity and on other side they open a debate regarding tax difficulties for bitcoin. First give cryptos a proper place into the economic structure then they have the right to talk about tax.

MIT2K

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Quote from: flower1024 on November 26, 2017, 12:15:17 PM

Quote from: MickeyT2008 on November 26, 2017, 11:55:35 AM

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

Hoo really but my question is how they can track? Through bank statement, they will get information where the money comes from. But what if we exchange our bitcoins for cash in local exchange then also they can track? In my country, our governament will not ask how you earn money but the end of the year you must do IT file and pay a normal tax to the governament.

Not too sure but if found out are you at risk of potential larger fines or jail time? Interested on the legality and transparency of operating within the laws opposed to hiding it

flower1024

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Quote from: MickeyT2008 on November 26, 2017, 11:55:35 AM

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

Hoo really but my question is how they can track? Through bank statement, they will get information where the money comes from. But what if we exchange our bitcoins for cash in local exchange then also they can track? In my country, our governament will not ask how you earn money but the end of the year you must do IT file and pay a normal tax to the governament.

lasry

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As far as I know some Governments (collecting taxes ) treats bitcoin as property and not as currency making it taxable. Every time we buy sell or even trade there happens some tax impacts. In our country, Income is taxable so whenever we receive payments through bitcoin (sort of income) it is conformed to be taxed.
Take note that there are several guidelines on how bitcoin are taxed and might be felt during filing of personal tax returns, declaring bitcoin as property

MIT2K

newbie

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Quote from: MickeyT2008 on November 26, 2017, 11:55:35 AM

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

wow very interesting coming from the UK, Thanks!

MickeyT2008

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This account was recently hacked

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

soham

sr. member

Activity: 406

Merit: 250

Taxing on bitcoin entirely depends on your country's local law. If your local law says that you need to pay tax on bitcoin, they may also have a defined guideline for the same. However, in my country the legal status of bitcoin and crypto currency is still not clear. So I don't have to follow any guideline to pay the taxes. However, I always keep track of the amounts I cash out from my bitcoin earnings and add that amount to my tax filing information sheet so that no one can point me out saying I own black money. But I only report whatever I cash out only, I don't report anything which I am holding in bitcoin.

MIT2K

newbie

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Whats the deal with Bitcoin and paying tax? How does it work?

Topic: Bitcoin and Tax? - page 5. (Read 1155 times)