Can paying in Bitcoin save tax? | Bitcointalksearch.org

Diecaut

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

it’s hard to avoid income tax when using bitcoin only for software.

they can make legal office with high tax if want to make taxes from bitcoin

Ailmand

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

I think this is not a new concept at all. Almost all governments are aware of the business and trends that could be profitable or is currently profitable in their local markets, therefore, it's not new that since bitcoin has been gaining much attention and value for the last several months or years, it would be inevitable for government to try to make it work for them through placing taxes over it or somehow restricting its use in that sense that people have to pay fees in order to use it wherein the proceeds would go to the government. Other countries are already drafting their own laws on how to regulate it in order to gain some use for it, since they have been seeing its continued rise.

Troysen

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

merlyn22

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in my country the goverment still finding a way to put tax on bitcoins maybe it was hard due to volitality of bitcoins. in other way like converted bitcoins into fiat money if you deposit on bank they applied tax on your account. but if you only keep bitcoins it was still tax free

joebrook

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Quote from: Don Pedro Dinero on December 17, 2017, 06:25:38 AM

I think you are going to find quite a few loopholes. In my country, in theory, you don’t pay tax unless you convert bitcoin into fiat, but researching the subject I’ve seen some lawyers defending that when you buy something directly with bitcoin you should also pay tax because it is a way of cashing it in. Anyway, there is no clear legislation about it, at least in my country, but what is sure is that if you pay directly with bitcoins, especially to foreign companies, it is very unlikely that the IRS or equivalent of your country are going to be able to charge you.

In my country there isn't any law regarding bitcoins whatsoever and i doubt there is going to be a law in that regards for a long time. I want to know if the government in your country charges tax when people convert their gold in cash. If that's the case i think they should but if not then it's not fair because they are both likely the same asset.

penig

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Its heavily defendant on how your country and the country of the counter-party treat tax. Bitcoin may be treated as an asset or a currency, local sales tax may apply to any sales or only to those in country/state. Rules can change if you are operating as business/for profit. In other words its complicated and changes for each country.

An issue i'm interested in is where UK CGT is applied to transactions that are assets to asset, i.e. no conversion to cash. If these are not liable to CGT, then there's a big tax saving from liquidating Bitcoin if buying large ticket items.

tutorroma

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It is suggested that you register a free company, in some small countries or on a small island registered on the Pacific Ocean, in general, there is a policy of tax exemption. Yesterday's news was that France had to levy a tax on the special currency, and I think it was difficult to implement, and there was a lot of ways to avoid taxes.

judemarco1996

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some wallet have tax when you buy btc

Ctn

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I think paying in the bitcoin won’t make much difference if considered or compared with the other forms of payment. The thing is we never think about the bitcoin from the basic steps. The bitcoin is not gotten into the system directly and before it could it has to be bought with money, the real cash or in simple word fiat. Now this fiat comes from the banks to the exchanger and then to the bitcoin. Now from here onwards whatever happens with the bitcoin is not traceable to the taxing department but when things will be exchanged for the bitcoin then you will get the products or services with it which will have the taxes to be paid which you will get from he ultimate customer only. So either you will have to incur higher prices from the users or just tax it in the simple words.

ss890

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

Thats possible as long as bitcoin stays in the bitcoin and over the internet. I mean if user, the end user when buys or sells something over the internet and when he gets the money cashed out to bank account then it will be taxed for sure because it is in the bank account and at the end of financial year you will have to show up with the tax department if the amount of money that was raised or funded into your account was noticeable enough!

At least in India this is the thing we have to follow. Though the system here is not meant for bitcoin in anyway but IT department can easily raid the account and seal it if no tax info is provided for the foreign transaction, and here the foreign transaction is bitcoin itself.

coolstory

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

If the spendings on it is relatively small like couple hundreds of dollars, nobody would attempt to tax it from government. but if you're talking for bigger sums of dollar equivalent, they may try to tax that spending.

maxamus

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Quote from: SakinaPrincess on December 17, 2017, 06:42:05 AM

Soon there will be tax on bitcoin. Governments are now thinking of it to implement it under the taxes.

If we look at this situation from a broader prospectus it will workout for betterment of bitcoin if government start taking bitcoin then government will also gain profit from that and there is no way government will try to ban or stop bitcoin once it starts gaining profit from bitcoin but the normal users will be affected little bitcoin.

toElefante

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

In the USA you have to pay capital gains taxes anytime you convert, cash out, or spend BTC regardless of the amount. So right now there is no savings.

Congress is considering an exemption on transactions up to $600. If they pass that, then yes it will probably save the taxes to pay for services directly with BTC. But it's not law yet.

snipetr

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Aa we see bitcoin as future currency, so if we pay through bitcoin it must be taxable. Now a days governments of many countries recognized bitcoin as a payment system and they accepted its transactions so these ttransactions may taxable.

criz2fer

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

It will depend on application and country. Specially on how to get our earnings from bitcoin. Declaring our assets are the most important thing for the government to tax us.

roshanface123

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Quote from: Don Pedro Dinero on December 17, 2017, 06:25:38 AM

I think you are going to find quite a few loopholes. In my country, in theory, you don’t pay tax unless you convert bitcoin into fiat, but researching the subject I’ve seen some lawyers defending that when you buy something directly with bitcoin you should also pay tax because it is a way of cashing it in. Anyway, there is no clear legislation about it, at least in my country, but what is sure is that if you pay directly with bitcoins, especially to foreign companies, it is very unlikely that the IRS or equivalent of your country are going to be able to charge you.

They are not gonna implement tax over your bitcoin investment but if you try to convert into Fiat through bitcoin sale it comes into our bank accounts on that time the bank will impose tax over that untaxed investment. And making shopping through online also,ln products price they have included tax.

Baimovic

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Quote from: SakinaPrincess on December 17, 2017, 06:42:05 AM

Soon there will be tax on bitcoin. Governments are now thinking of it to implement it under the taxes.

yes, I agree with you that today, in some countries that legalize bitcoin as a transaction tool will make regulations or rules that discuss bitcoin, including about bitcoin tax.

kiky03

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Quote from: Jet Cash on December 17, 2017, 06:20:32 AM

I see that several governments are charging or thinking of charging tax on Bitcoin gains. I know that in the domain name industry several registrars and domain name sellers accept Bitcoin as a payment method. I am one one of them, and I am far from unique. I'm thinking of quoting domain name prices in Bitcoin to remove the currency equivalent. So that raises two questions. Will this help the buyer to save tax? Is this an incentive to buyers to switch investments from one appreciating asset into another?

no because fee transaction of bitcoin is too damn high,it's absolutely improvident money. i suggest to convert first to doge/ethereum to save tax.

JohnB31

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?? Don't know where you live.

Quote from: Mike Mayor on December 17, 2017, 06:36:24 AM

I would not call them loop holes but you don't normally declare tax on everything. If you sell your car you don't declare tax on that. If you sell your house you don't either.

I expect it all depends on where you live.
When Buy of Sell a car between private persons no tax is involved. When a company is involved when i buy or sell a car tax is involved. I expect that when i buy and sell cars many times a year the tax office asks information....
When i buy or Sel a house (also between private persons) i have to pay tax.
As a private person i also have to pay yearly taxes over my assets (including Bitcoin and Altcoins)

KevinHD

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In reality, it wasn't made for the government. Sooner or later, the government will ban and illegalize bitcoin due to the reason that they can't get taxes from ones who's earning it. It can only be orn through internet and technology.

Also, bitcoin for transaction has fees in which the wallet you have and ursing are the ones who taxes you with. Unless, you converted ur bitcoin onto fiats.

Thus, bitcoin do save tax, but you can't get rid of transaction fees.

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