Bitcoin vs Taxes - page 15. | Bitcointalksearch.org

CARrency

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Quote from: Beerwizzard on July 15, 2017, 03:08:15 AM

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Buying bitcoin, selling of your bitcoin, converting bitcoin into fiats and fiats into bitcoin you are paying taxes. You might think that bitcoin is a decentralized digital currency, but you are still paying for your transactions, we know most of them as fees, especially to wallets or applications or a company.

talkbitcoin

legendary

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All I know is that I know nothing.

whenever i have sold bitcoin for local currency i have always done it at much higher market prices and p2p and that means no taxes Wink

also we are moving towards a world where bitcoin taxes are only for investors in bitcoin. this means if you go on an exchange and try trading bitcoin or buy and sell it there you will have to pay taxes.

but if you are using bitcoin to buy something (aka use bitcoin as a currency) you don't have to pay ANY taxes. it is 0 tax for that.

and everyone is happy about it. the traders make a lot so they don't care and the users are happy because obviously 0 tax!

pinkflower

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Quote from: Beerwizzard on July 15, 2017, 03:08:15 AM

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

This is common in the States because Uncle Sam hates people missing their tax payments and they come after any form of tax evasion. Crime lord Al Capone was caught and imprisoned for tax evasion, not for murder or for other crimes related for being a mobster.

Heres the good news. If your BTC trade ended up in a laws you are eligible for a tax cut.

oegarod

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During the early days people used bitcoin to escape taxation and later on things got changed little by little. On the whole the taxation has been now regulated based on the transactions performed in several countries. Hope the same will get used around the world countries when more people start using bitcoin.

machinek20

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I got taxed after I sell my coin, the exchanger automatically charge it, but there are still no rules yet for the tax income, in the future I think all of our activity that can be supervised like selling or buying will be taxed, the government doesnt really care about it, as long as you gained more money using bitcoin then you need to be taxed

pitham1

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Quote from: Beerwizzard on July 15, 2017, 03:08:15 AM

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

It can be considered trading income or capital gains, when you sell your bitcoins for fiat.
Most countries have some kind of tax on capital gains. The tax rate could be different depending on whether it is short term or long term capital gains (depending on how long you hold your bitcoins).

HeRetiK

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Quote from: Beerwizzard on July 15, 2017, 03:08:15 AM

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Luckily no. In Austria and Germany there's the following approach on Bitcoin's currency / commodity dichotomy: You only have to pay income taxes on Bitcoin if you get paid with it (ie. Bitcoin being used as a currency to pay for your goods and services), make profit as a day trader or sell it as a product (ie. you're a company / broker offering Bitcoins). If used as a commodity / store of value, there's a minimum holding time of one year after which you can sell Bitcoin without any taxations on the profits (akin to gold).

Amph

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Quote from: Beerwizzard on July 15, 2017, 03:32:44 AM

Quote from: Emoclaw on July 15, 2017, 03:11:08 AM

If you sell Bitcoin for Fiat, then you have to pay taxes.
While Bitcoin is a currency, it is considered a commodity and therefore by selling it you're 'making money'.
It's illegal if you don't pay taxes.

Applying the same logic: I'm expecting inflation and buying USD for my EUR. Then EUR lose 1% and at the same time USD is getting 1%. If i exchange it back i will get 2% income (1% counting the inflation cut). So should i normaly pay tax for this income after i tried to save my money in another currency?

if you don't sell you don't pay any tax, from the moment you dump for fiat you pay a% of tax, but this is true on everything, bitcoin is no different, but bitcoin allow you to avoid tax, if you use it as a currency that's is the beauty at least for now

also if you sell on exchange but leave the money there you also don't pay anything, you can always get those back into bitcoin, for trading

mattermaster

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Quote from: Beerwizzard on July 15, 2017, 03:32:44 AM

Quote from: Emoclaw on July 15, 2017, 03:11:08 AM

If you sell Bitcoin for Fiat, then you have to pay taxes.
While Bitcoin is a currency, it is considered a commodity and therefore by selling it you're 'making money'.
It's illegal if you don't pay taxes.

Applying the same logic: I'm expecting inflation and buying USD for my EUR. Then EUR lose 1% and at the same time USD is getting 1%. If i exchange it back i will get 2% income (1% counting the inflation cut). So should i normaly pay tax for this income after i tried to save my money in another currency?

As you make money, you pay more on tax. Example: if you make a sale or convert a digital currency to another, or you pay for any shopping services using your currency, you have to pay tax.
Your total paid or return reaches you including tax.

Beerwizzard

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Quote from: Emoclaw on July 15, 2017, 03:11:08 AM

If you sell Bitcoin for Fiat, then you have to pay taxes.
While Bitcoin is a currency, it is considered a commodity and therefore by selling it you're 'making money'.
It's illegal if you don't pay taxes.

Applying the same logic: I'm expecting inflation and buying USD for my EUR. Then EUR lose 1% and at the same time USD is getting 1%. If i exchange it back i will get 2% income (1% counting the inflation cut). So should i normaly pay tax for this income after i tried to save my money in another currency?

Emoclaw

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If you sell Bitcoin for Fiat, then you have to pay taxes.
While Bitcoin is a currency, it is considered a commodity and therefore by selling it you're 'making money'.
It's illegal if you don't pay taxes.

Beerwizzard

full member

Activity: 924

Merit: 148

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Topic: Bitcoin vs Taxes - page 15. (Read 6965 times)