bitcoin and taxes buying goods and items with btc tax free

shield132

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Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

I don't understand at all what you mean. If you officially get salary in Bitcoin, then you have to pay taxes and buying goods have nothing to do with it. Also, if you live in a country where income from other countries doesn't get tax, then you can feel free. In any way, there is no need to be that official in everything. You got bitcoin, how will someone come with you and ask, why don't you pay taxes? I mean if you are just an individual person. But if you are a company or really get salary in bitcoin, then you have to pay taxes. In some countries this tax subject is very complex but in some - you have to pay % of bitcoin converted into USD from the moment you received it.

cryptoboss2020

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Quote from: jrrsparkles on October 13, 2020, 01:20:04 PM

Quote from: cryptoboss2020 on October 13, 2020, 07:56:39 AM

Quote from: jrrsparkles on October 13, 2020, 03:39:23 AM

Quote from: GeorgeJohn on October 13, 2020, 03:05:58 AM

Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

and is buying goods and items with btc is to way to cash out your crypto tax free?

This particular text is complicated because it's not obvious that purchasing or buying goods with Bitcoin really means that we are tax free in Bitcoin, because I have no seem atoms of tax in Bitcoin except charge's during Bitcoin transaction that's equivalent for normal banking fees during some transaction.

Have you ever bought anything using bitcoin? You are going to pay taxes for the goods no matter how you are paying but this way you can reduce the tax which will be higher if you are reporting the crypto income as income tax but if you are a tax payer then you also should report the source of income and every expensive purchases also will be traced if you are doing it more often and there will be a question arise how you are paying them when there is no record for it on your bank.

the goods can be gift from others what you mean paying taxes from goods?
if i pay for goods with crypto i get goods where do i have to show how did i payed for goods???

What goods you are talking about? Imagine you are buying an expensive watch or a car or something which needs your identity to get the invoice so you are linking that tax to your name.Even if you are buying something like groceries or foods, you are paying for it which included all the taxes and the manufacturing cost so you are paying the final price.

but you can online goods with cryptocurrency right?

jrrsparkles

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Quote from: cryptoboss2020 on October 13, 2020, 07:56:39 AM

Quote from: jrrsparkles on October 13, 2020, 03:39:23 AM

Quote from: GeorgeJohn on October 13, 2020, 03:05:58 AM

Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

and is buying goods and items with btc is to way to cash out your crypto tax free?

This particular text is complicated because it's not obvious that purchasing or buying goods with Bitcoin really means that we are tax free in Bitcoin, because I have no seem atoms of tax in Bitcoin except charge's during Bitcoin transaction that's equivalent for normal banking fees during some transaction.

Have you ever bought anything using bitcoin? You are going to pay taxes for the goods no matter how you are paying but this way you can reduce the tax which will be higher if you are reporting the crypto income as income tax but if you are a tax payer then you also should report the source of income and every expensive purchases also will be traced if you are doing it more often and there will be a question arise how you are paying them when there is no record for it on your bank.

the goods can be gift from others what you mean paying taxes from goods?
if i pay for goods with crypto i get goods where do i have to show how did i payed for goods???

What goods you are talking about? Imagine you are buying an expensive watch or a car or something which needs your identity to get the invoice so you are linking that tax to your name.Even if you are buying something like groceries or foods, you are paying for it which included all the taxes and the manufacturing cost so you are paying the final price.

pinggoki

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Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

Fortunately, even though my country was crypto-friendly our government still not impose any regulations upon using it. Hence, I am not paying any taxes for using it and I think that is a good thing for me.
I only pay taxes if I converted it into fiat and buy some stuff. I also wonder how our government cannot think of something to get benefit out from it.

imstillthebest

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cashing out means to withdraw , you dont cashout when you buy goods . cashing out in crypto do have a fee and do have a tax depending on the place or on the provider that you use , same with buying goods but i believe that there is more tax paid when buying thats why i never buy using a crypto but what im doing is i cashout first then purchase using the regular currency . we need to be wise to save from the expense of tax , if you can cash out at bigger amount and from a designated time why not ? than cashing out every day and paying more tax .

Ridwan Fauzi

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I haven't paid the tax when using bitcoin so far, agree with almost user above me who says that is depend on the country regulation. You have to know first your country regulation against bitcoin and crypto currency as a whole and how they see crypto currency. Like in my country, they only accept bitcoin as mean of investment and they include it to comodity. But until now, I don't know their way to charge the fee for someone who use it, maybe they charge to the exchange that have legalized by the government and we spend money for the tax when we cash out to our money fiat.

skarais

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In 2019, we as crypto users in Indonesia are starting to prepare to accept new regulations regarding crypto taxes that we must pay to the government. Since the government has legalized crypto trading in the futures market, they will also tax crypto businesses (exchange). I'm not sure how much tax we have to pay the government for every sale and purchase transaction we make on an exchange operating in Indonesia. The idea is that the government will set a 0.01% tax on each transaction. We don't pay taxes directly to the government, but the exchange takes care of this. If it is true that tax regulation have been enforced on every stock exchange operating in Indonesia, then we have paid indirectly during the buying and selling transaction on the exchange.

cryptoboss2020

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Quote from: jrrsparkles on October 13, 2020, 03:39:23 AM

Quote from: GeorgeJohn on October 13, 2020, 03:05:58 AM

Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

and is buying goods and items with btc is to way to cash out your crypto tax free?

This particular text is complicated because it's not obvious that purchasing or buying goods with Bitcoin really means that we are tax free in Bitcoin, because I have no seem atoms of tax in Bitcoin except charge's during Bitcoin transaction that's equivalent for normal banking fees during some transaction.

Have you ever bought anything using bitcoin? You are going to pay taxes for the goods no matter how you are paying but this way you can reduce the tax which will be higher if you are reporting the crypto income as income tax but if you are a tax payer then you also should report the source of income and every expensive purchases also will be traced if you are doing it more often and there will be a question arise how you are paying them when there is no record for it on your bank.

the goods can be gift from others what you mean paying taxes from goods?
if i pay for goods with crypto i get goods where do i have to show how did i payed for goods???

jrrsparkles

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Quote from: GeorgeJohn on October 13, 2020, 03:05:58 AM

Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

and is buying goods and items with btc is to way to cash out your crypto tax free?

This particular text is complicated because it's not obvious that purchasing or buying goods with Bitcoin really means that we are tax free in Bitcoin, because I have no seem atoms of tax in Bitcoin except charge's during Bitcoin transaction that's equivalent for normal banking fees during some transaction.

Have you ever bought anything using bitcoin? You are going to pay taxes for the goods no matter how you are paying but this way you can reduce the tax which will be higher if you are reporting the crypto income as income tax but if you are a tax payer then you also should report the source of income and every expensive purchases also will be traced if you are doing it more often and there will be a question arise how you are paying them when there is no record for it on your bank.

GeorgeJohn

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Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

so how about taxes you have to pay from btc ?

Btc is not a companies or manual businesses that pay taxes, see looking btc and its regulations I don't think it's necessary to pay taxes in cryptocurrency in general because it's decentralized currency not centralized.

Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

and is buying goods and items with btc is to way to cash out your crypto tax free?

This particular text is complicated because it's not obvious that purchasing or buying goods with Bitcoin really means that we are tax free in Bitcoin, because I have no seem atoms of tax in Bitcoin except charge's during Bitcoin transaction that's equivalent for normal banking fees during some transaction.

worldofcoins

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Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

so how about taxes you have to pay from btc ?

and is buying goods and items with btc is to way to cash out your crypto tax free?

If you're paying taxes, it means you're getting traced by the government, and they're following you. I never heard of bitcoin's customers covering charges.
Bitcoin is unstable and decentralized, which plainly means it's unpredictable and nobody can trace or track or take it. I never pay any charges/taxes in my career.
I don't know about other countries/regions. But in my nation, there are no taxes applied on bitcoin or in any cryptocurrencies.

proTECH77

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In my country which bitcoin is just newly legalized in the country which the government made taxes free for every citizens in the country. Since covid-19 came up our government is trying to Impose double tax to every business man in the country.
But I don't think it will work for my country for bitcoin users to pay taxes for their purchase because bitcoin newly legalized in the country. The government will still consider that the population of bitcoin users is not too popular to pay taxes for bitcoin items in the country.

Yatsan

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Quote from: fiulpro on October 06, 2020, 01:58:00 PM

1. Country
2. Laws
3. Registration
4. History of the coins

There are a lot of things that you have to keep into account.

Certainly those things must be considered to better know if using Bitcoin is in need to be fined with taxation or not. There are really certain key points that are not the same on every country so the answer will really be dependent or varies upon the place where you are resided to better know if taxation is also applied on buying goods and services using Bitcoin. For countries where they can directly use Bitcoin as payment option maybe taxation is applied and that is duly dependent on the government if they would be putting such law for their country. Well actually even using fiat or Bitcoin, all things like goods and services have already their VAT (Value Added Tax) top up on those things that we purchase.

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Quote from: cryptoboss2020 on October 10, 2020, 01:54:22 PM

Quote from: webtricks on October 10, 2020, 11:20:40 AM

Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

so how about taxes you have to pay from btc ?

~snip~

Quote from: cryptoboss2020 on October 06, 2020, 12:34:06 PM

and is buying goods and items with btc is to way to cash out your crypto tax free?

~snip~

what if many people will use one bitcoin wallet and same exchnager as there is bitcoin trading teams who use same things like every team member use binance same account becouse they hold mutual funds there as many people trade crypto as a team.

but it all depends on country and juridcal locatiion

Such thing is only possible in case of centralised services such as Exchanges and Custodial wallets. But instead of giving you anonymity advantage, it will result in entirely opposite situation. For using such services, you have to do KYC. In other words, you are giving away your credentials which will make you more prone losing anonymity.

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Quote from: ekeh on October 10, 2020, 05:22:08 PM

The world is gradually moving into technology, and is a just a matter of time for government to adopt the traditional way or implications into the system. Therefore bitcoin is an digital assets that can be convert to any local currency in the world.

But converting Bitcoin into fiat in other part of the world is not that easy,and while the world is getting into technology yet governments are getting stricter to Bitcoin and cryptocurrencies.

Quote from: Zionatin on October 10, 2020, 05:39:51 PM

Just sales tax. No income tax because crypto is not money and not given to us by the government so they have business telling us how to use it. It's that simple. If the government has a problem with it then they should open up their own crypto wallets but they won't because then we can trace our tax money and reveal the corruption.

Bitcoin is a Money because we can use this as purchasing materials from product and services though limited chances.
but you are correct Sales tax is much even better to apply and not income taxes.

Daniel91

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Quote from: Zionatin on October 10, 2020, 05:39:51 PM

Just sales tax. No income tax because crypto is not money and not given to us by the government so they have business telling us how to use it. It's that simple. If the government has a problem with it then they should open up their own crypto wallets but they won't because then we can trace our tax money and reveal the corruption.

An interesting idea but what if you exchange that bitcoin into the local currency and buy a house, for example? Or a ship?
I think that a certain compromise with the authorities is needed and that we need special rules for crypo.
In my country, if you can prove that you kept crypto funds in your wallet for at least 2 years and did not spend it, you are exempt from paying taxes and that is a good law.

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Quote from: cryptoboss2020 on October 06, 2020, 02:44:14 PM

but there is ways to avoid taxes right? when you need to pay taxes in usa you send coins to europe or uk and taking out with binance debit card or asking someone in europe or uk will take out for you that could be the solution right?

off course if some ways to avoid paying taxes will be more expnsive then actually paying taxes then sure its not so good idea
Second option you buy car or other items or goods maybe some expensive weins or champagnes....

right?

Tax evasion. Now I am tracking you.
Just kidding. Grin

For every item, there is always a tax that is coupled with it.
You cannot evade it even if you want to.
Put it this way, you buy MnM's. The chocolate inside is the product and the coating is the tax. Grin

I consider every purchase now is applied with tax already.

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Quote from: fiulpro on October 06, 2020, 01:58:00 PM

Hello

In some countries this might be the case, the cryptocurrencies aren't taxed there but in most of the countries you do have to do KYC connected to your wallet , which inturns gives your information to the government very easily. Therefore if you would try to invade tax by P2P buying, you might have to go to the court to show where you got all the money from and then pay fine.

At the same time in many countries, they have system of GST , which takes around 5-10% of the price irrespective of how you decide to buy it.

Therefore you would have to check with what you are dealing with.

Laws are different in different places and I do believe you have to do a thorough research on this topic then decide to buy something with BTC.

But if you have BTC in cold storage since a very long time and therefore it's Virgin of might have no track history, then you can very easily make transactions with the other person, but registering the thing would be difficult in your name.

1. Country
2. Laws
3. Registration
4. History of the coins

There are a lot of things that you have to keep into account.

Yeah and the thing that I have observed in using Bitcoin as payment here in my country is that, it only requires fee when cashing-in and cashing-out. Paying/buying goods and services are smooth without any fee except for the loan that collect $.31 every transaction. Also transferring funds into banks made it more easier and of course free of charge here in my country. I am happy to use Bitcoin because of convenience most specifically this pandemic.

Zionatin

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Just sales tax. No income tax because crypto is not money and not given to us by the government so they have business telling us how to use it. It's that simple. If the government has a problem with it then they should open up their own crypto wallets but they won't because then we can trace our tax money and reveal the corruption.

ekeh

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The world is gradually moving into technology, and is a just a matter of time for government to adopt the traditional way or implications into the system. Therefore bitcoin is an digital assets that can be convert to any local currency in the world.

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