Topic: Bitcoin Attorney Discussions - page 2. (Read 2762 times)

I tend to agree with you about it being difficult for regulators to understand and track; however, I still encourage all of my fellow citizens to pay their taxes. We have a responsibility to our communities and to our country.

George D. Greenberg, Esq.

www.attorneybitcoin.com

Yes, it is very interesting and one of the reasons why bitcoin being a currency is not actually true.
Bitcoin users who think bitcoin can function as a currency in daily transactions are either living in
countries where bitcoin is currently not taxable or they have determined they are not taxable due
to being a currency. Most other countries have stated that bitcoins act more like a commodity and
as such are taxable at each sell execution. Or, some users do not care and are willingly defrauding
their tax authorities.

The reality today is that when a bitcoin user uses their bitcoins to purchase any product, other
than an altcoin, that user must report and pay any profit gain in that tax year. This is extremely
burdensome for the average bitcoin user and likely will lead to many not disclosing such in their
yearly taxes.

What I think that is most interesting is that the average bitcoin user, who is concerned with mass
adoption and getting everyone using bitcoin to pay for daily things, like "coffees" have no idea legally
what they are talking about. If they really wish to achieve those goals, they need to form and finance
groups to lobby their governments and get the classification of bitcoins from a taxable commodity to
a nontaxable currency. Otherwise, using bitcoin as a currency is entirely unfeasible.

In my opinion, using your bitcoins to purchase anything, other than altcoins, creates a taxable event.
Not only is this designed so that the government can "get theirs" but also as a means of regulation.

i'm also interested in this, as it is now no country is taxing bitcoin directly, but i read here and there that maybe in the usa, they are finding a way to tax bitcoin directly, by tracking the activity linked with coinbase

still this leave plenty of other ways to use bitcoin that are not linked with coinbase, like mining them and sending to openbazar to purchase what you want

and because tracking all this is simply impossible, i believe that in the end bitcoin directly usage will be only half tracked by the government, or at best only for big purchase

Dear BTC Talk Community:

I have been involved in BTC/Cryptos and BTC/Crypto Law for the past 3 years and was also on a speaker panel at Inside Bitcoin convention in Las Vegas. I have been an attorney here in Las Vegas for 25 years.

It is tax time so I have had some opinions about cryptos and taxes. It is my legal opinion that Bitcoin earnings only become taxable when they are converted to fiat. However there is a variation I would like to discuss.

If I have Bitcoin, and I make profit (for example) trading Bitcoin, and I then use those earnings to purchase goods or services from a vendor or service provider that/who accepts Bitcoin.....are the earnings that I made on the BTC that I spent for those goods/services taxable?  I'd like some opinions please.

It is my opinion that they would be taxable at the time I spent them as it would be the equivalent to converting to fiat.

What about converting to a pay card? gold? Interesting isn't it?

I'm very much looking forward to the diversity of opinions. Please keep in mind that I believe in paying my taxes and reporting my income and am not here to advise on how to get out of paying taxes, but rather to help us all understand when there is a taxable event, and how to legally minimize the taxes I am responsible to pay.

Thank you BTCTALK community.

George D. Greenberg, Esq

www.attorneybitcoin.com