Topic: Bitcoin and Taxes - page 3. (Read 1862 times)
Though humans generally do not like to be taxed, I beleive if the IRS want to tax crypto coin holders it is a step in the right direction for formal government recognition and approval. I also beleive this recognition can make crypto more appealing for the business world to accept crypto in their exchanges. So yes it is a bit worrying to be taxed but we can view it in a positive light too!
I'm not against paying taxes, it's just that how can those guys really implement it hundred percent to everyone who tried to hoard bitcoins. There are ways to buy coins out of exchanges and those transactions are untraceable specially if you have multiple wallets that is not directly connected with your identity. If people really wants to launder money using bitcoin then the government can't really do anything about it.
The IRS currently considers cryptocurrency to be property. But that doesn’t mean one should avoid reporting gains. The agency has always been more lenient on taxpayers and investors who jump the gun in this regard. Coming forward sooner rather than later can help prevent stricter penalties or fines because of non-reporting.
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
What the tax authority is talking about revealing here is not about the total bitcoin you have, but the amount you have sold because since its regarded as property, its the capital gains that is subjected to tax and that would not happen if you didn't sell your property which in this case bitcoin.
From the legal and civic point of view, the onus on disclosure is on the individual show to the tax authority the total of income generated from selling crypto currency that have increased in value over the years. On the decentralization and how bitcoin income should be tax free based on your suggestion is out of it because as a dream gets bigger, some interest and variables that have not be thought of becomes an important fact that needs to be dealt with. This is exactly the point where bitcoin is that compromise needs to be made on the part of enthusiasts to have a problem free environment.
What the tax authority needs to do since they are helpless without individual disclosure is to review the current policy if that is what is leading people away from paying willing couple with the fact that they recognize that government would have to spend more in other to unravel the people behind every wallet address there is fund.
The IRS currently considers cryptocurrency to be property. But that doesn’t mean one should avoid reporting gains. The agency has always been more lenient on taxpayers and investors who jump the gun in this regard. Coming forward sooner rather than later can help prevent stricter penalties or fines because of non-reporting.
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
Not really. Even though bitcoin is decentralised, it doesn't mean that the government isn't able to tax it. They obviously will and are doing so because they see a huge industry that they could take advantage of in terms of tax revenue.
Decentralisation here is only about the bitcoin network itself. What the government does is out of our control.
In my country, when you lodge a tax return, you only need to mention the amount of gains made through trading or investing in bitcoin, and not the actual amount of bitcoin that you own. Obviously this could be different in different countries. If you're trading a lot of BTC, constantly, on an exchange, and the government asks you for figures, then you should definitely provide them accurately if you want to stay out of trouble.
Else, if you're just using bitcoin without trading it against fiat, I doubt you do.
Added to that statement, paying taxes to the government will ruin the fundamentals of bitcoin and how it was created for. I would rather keep my bitcoin for myself and not allow it to be seen.
The government is interested in profits from bitcoin transactions, for example, when trading on the stock exchange.
Taxes are taken on the basis of profit, not just from the fact of ownership of bitcoin.
If you just pay with bitcoins, then there is no profit and no taxes to pay.
No, we do not. The more we reveal, the more we get risks of getting hacked. Bitcoin is all about transparency. Bitcoin was created to oppose the corrupted banks. Everything related to bitcoin must kept anonymous. The government must know that. Added to that statement, paying taxes to the government will ruin the fundamentals of bitcoin and how it was created for. I would rather keep my bitcoin for myself and not allow it to be seen.
I don't think so far, I think bitcoin has nothing to do with taxes. we know that bitcoin is decentralized, there are no third or fourth parties.
Exactly so but we know that different quarters have been calling for proper recognition of bitcoin and cryptos since it will give them increase from the proceed of their coins, making them drive big cars and live good live.
That means if we/they keep agitating for recognition, the decentralized purpose will off course be "uncoated", the government will come in and this business of crypto will be emersed in regulation.
Take for example, if the struggle for ETF with SEC (which is on government coverage) goes through, what do we expect that will happen with taxing? Off course, it will be in line with the practice of tax from bitcoin.
it is the decentralized nature of bitcoin and other crypto that make them taxes free.
Taxes are paid on profits from bitcoin transactions.
Of the profits, and not just because of the fact that you have the bitcoins.
The main question is whether there is a profit in the conditions of the collapse of the cryptocurrency market, the crash of the course to the classic currencies. If losses, then why pay tax?
For example, in Russia, cryptocurrencies are not considered a currency, but a property. The tax service has defined the procedure for taxation of transactions with bitcoin. But while all this is not well developed. There are only certain instances where the declared income from cryptocurrency.
Well, initially, one of the attractions of bitcoin is that it is decentralized and tax free because Bitcoin is not a currency issued by any country. But, over time, Bitcoin must be subject to the rules of a country's tax obligations to be accepted. that's something that can't be avoided.
The IRS currently considers cryptocurrency to be property. But that doesn’t mean one should avoid reporting gains. The agency has always been more lenient on taxpayers and investors who jump the gun in this regard. Coming forward sooner rather than later can help prevent stricter penalties or fines because of non-reporting.
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
If the people are declaring their annual fiat income to the government to determine how much total taxes will be paid therefore its should be applicable in Bitcoin too. Lot of people specially the rich were charges of tax evasion because they did not pay the right taxes then it will be unfair if those earning of Bitcoin will be exempt from this government policy specially if Bitcoin was declared legal to use.
The holding of bitcoin or for that matter any crypto should not and probably won't in itself incur a tax liability however any profits from trading or increase in the value of your holding in all probability will, just as trading on the stock markets etc would.
As far as I know the "property" definition changed in the 2017 tax cuts act. Now it must be declared as a quasi-currency following forex rules. Meaning take a hit on every trade that made gains.
As far I know bitcoin is beyond governments control and no rules of government works here so, it is totally a tax free system.
Our society needs taxes. We felt like taxes are big because of the middle-man in everything we use and eat. Taxes double then. Why do we have to avoid taxes though?
I do not think so far bitcoin is nothing to do with taxes.When we income or profit from BTC then we given taxes. it is the decentralized nature of bitcoin and other crypto that make them taxes free. it is one of the good advantage. no gov.institution or private organization any from taxation on currency.
IRS has been seeing bitcoin as a properly ever since 2014 https://www.irs.gov/newsroom/irs-virtual-currency-guidance
it is not really news and this above link is a lot better than using a link from some click bait site in my opinion
no we don't need to and we aren't but not all of us are using bitcoin as a currency. most people are trading bitcoin to make profit and when you make profit on a centralized exchange you also have to worry about taxes and then report it so that you are not evading them which is illegal.
in other words it comes down to your usage.
it is not really news and this above link is a lot better than using a link from some click bait site in my opinion
Do we really need to reveal how many bitcoins we have?
no we don't need to and we aren't but not all of us are using bitcoin as a currency. most people are trading bitcoin to make profit and when you make profit on a centralized exchange you also have to worry about taxes and then report it so that you are not evading them which is illegal.
in other words it comes down to your usage.
Well some people base on they want to make post and become famous they say the amount of bitcoin which they don't even have.. So the if the government want to impulse tasks on the people there we be fake payment because not every body that said they have that have it. For me it is not the best option
Well for me, it's not about declaring your holding for possible tax deduction but I think the tax should be impose on the transaction to the exchange. Holding is not subject for tax but if you move your holding for trading or for whatever reason that should be subject to tax.
I think that it is the decentralized nature of bitcoin and the other cryptocurrencies that make them tax-free. That is one of the advantages we derive from owning some amount of cryptocurrencies. No governmental institution or individual can place any form of taxation on the currency.
Yes of course it seems to me that in the aftermath of the adoption of crypto currency, it is inevitable that we will pay some taxes from it
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