depending on where you live, things you do may or may not be subjected to paying taxes. and if you are making a considerable amount of money then you need to consult some experts about this or you will be taking a big risk down the line in case the Tax Authorities (like IRS in US) come after you.
and don't think you are escaping just because you used bitcoin. it is best to have a good plan right now instead of being in a lot of troubles later on.
Topic: Can paying in Bitcoin save tax? - page 2. (Read 277 times)
legendary
Activity: 1358
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The first decentralized crypto betting platform
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. If you did then he would you afford another car or house? You also don't have to declare everything you do. If you run a side business sewing for people or whatever it is then you don't declare tax on that. You only declare tax when it becomes a proper business. It does also depends on the laws in your country.
Excuse me? You may not declare tax on everything but you are legally obliged to declare if you sell a car or a house. That happens in my country and in most the developed ones. What country do you live in?
A lot of it seems to depend on the governments perception of possible gains or losses. I the UK, you don't pay tax on the disposal of your car, unless you are a business. This is because most people make a loss on their cars. If the government started to tax sales, then they would hve to allow tax relief on maintenance and losses. However, there is a limit to the number of cars you can sell in a year, if your exceed this, then you are classed as a trader, and then you are liable to tax. There are a variety of taxes involved in the sale of your home as well, I suspect that this is because it is an appreciating asset.
If they start taxing Bitcoin gains, then they will have to provide tax relief for losses, and with a volatile market, some governments may be reluctant to do this. It may also be possible to get rollover relief if you exchange one virtual asset for another. This could include crypto-currency swops, and domain name purchases. Of course, if at any time you take profits or income in a fiat currency, then that could be liable for tax.
Bitcoin and any altcoin do not need to think about it if they're really off-center. There is no way for the government to tax any blockchain because you have no way of determining who the user behind is. However, it is indeed possible for the government to impose a certain percentage of tax on exchanges. If they start taxing Bitcoin gains, then they will have to provide tax relief for losses, and with a volatile market, some governments may be reluctant to do this. It may also be possible to get rollover relief if you exchange one virtual asset for another. This could include crypto-currency swops, and domain name purchases. Of course, if at any time you take profits or income in a fiat currency, then that could be liable for tax.
A lot of it seems to depend on the governments perception of possible gains or losses. I the UK, you don't pay tax on the disposal of your car, unless you are a business. This is because most people make a loss on their cars. If the government started to tax sales, then they would hve to allow tax relief on maintenance and losses. However, there is a limit to the number of cars you can sell in a year, if your exceed this, then you are classed as a trader, and then you are liable to tax. There are a variety of taxes involved in the sale of your home as well, I suspect that this is because it is an appreciating asset.
If they start taxing Bitcoin gains, then they will have to provide tax relief for losses, and with a volatile market, some governments may be reluctant to do this. It may also be possible to get rollover relief if you exchange one virtual asset for another. This could include crypto-currency swops, and domain name purchases. Of course, if at any time you take profits or income in a fiat currency, then that could be liable for tax.
If they start taxing Bitcoin gains, then they will have to provide tax relief for losses, and with a volatile market, some governments may be reluctant to do this. It may also be possible to get rollover relief if you exchange one virtual asset for another. This could include crypto-currency swops, and domain name purchases. Of course, if at any time you take profits or income in a fiat currency, then that could be liable for tax.
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.
As the purchase can be treated as cashing out? This contradicts the concept of cashing out. You should not do business with these lawyers. They are stupid. The process of buying goods with bitcoin can be regarded as barter. If you do not sell the goods purchased, it is not economic activity and no taxes you should not pay. I don't think that changes anything. Even if you are earning Bitcoin it foes not exempt you from paying taxes as it is still counted as income from both earning and capital gains. Also i don't think that method will be legal as from what I know it is a standard procedure to Foreign Fiat Currency to be converted in your local Fiat Currency equivalent, which will also apply to Bitcoin. Remember that we cannot tax other currency we must convert it on our own to make it proper.
What a load of crap. You don't have to convert your Bitcoin to your local currency. It's yours you can keep it for as long as you like. You can spend it directly that's the whole point if btc. You don't need fist anymore because it is a currency. Wow dude please don't state rubbish like they facts.
Depends in which country you're living in so you should do your own research. In my country government has set no regulations on cryptocurrencies unless you're cashing it out into fiat. Yet there are VERY few places where you can pay using cryptos so there hasn't been any need for those regulations..
Anyways, if you're going to accept cryptos and not cash them into fiat you're probably not going to get in trouble but if I were you I'd cash-out some amount you have received, pay taxes for that and use remaining money. Then you're less likely to get in governments radar.
Anyways, if you're going to accept cryptos and not cash them into fiat you're probably not going to get in trouble but if I were you I'd cash-out some amount you have received, pay taxes for that and use remaining money. Then you're less likely to get in governments radar.
I use to think I couldn't spend crypto anywhere but you can. Did you look well enough? Don't only look for bitcoin look for a payment processor that supports Bitcoin. Many many websites use payment processors and they often support Bitcoin.
Depends in which country you're living in so you should do your own research. In my country government has set no regulations on cryptocurrencies unless you're cashing it out into fiat. Yet there are VERY few places where you can pay using cryptos so there hasn't been any need for those regulations..
Anyways, if you're going to accept cryptos and not cash them into fiat you're probably not going to get in trouble but if I were you I'd cash-out some amount you have received, pay taxes for that and use remaining money. Then you're less likely to get in governments radar.
Anyways, if you're going to accept cryptos and not cash them into fiat you're probably not going to get in trouble but if I were you I'd cash-out some amount you have received, pay taxes for that and use remaining money. Then you're less likely to get in governments radar.
Soon there will be tax on bitcoin. Governments are now thinking of it to implement it under the taxes.
I don't think that changes anything. Even if you are earning Bitcoin it foes not exempt you from paying taxes as it is still counted as income from both earning and capital gains. Also i don't think that method will be legal as from what I know it is a standard procedure to Foreign Fiat Currency to be converted in your local Fiat Currency equivalent, which will also apply to Bitcoin. Remember that we cannot tax other currency we must convert it on our own to make it proper.
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. If you did then he would you afford another car or house? You also don't have to declare everything you do. If you run a side business sewing for people or whatever it is then you don't declare tax on that. You only declare tax when it becomes a proper business. It does also depends on the laws in your country.
Also honestly I think it would cost a country more to charge people for Bitcoin legality issues then to leave it. I honestly don't think it makes enough of a difference to the economy. When you spend Bitcoin you stimulate growth of Bitcoin and jobs. Think about it. Because of bitcoin I can not afford to buy things from people and this gives them employment. The government is bit going to stop that. Eventually some if that money even if you pay in bitcoin is going to go to tax because of vat and other things. If at some point in the future things need to he adjusted I'm sure the government and the people can work together.
Also honestly I think it would cost a country more to charge people for Bitcoin legality issues then to leave it. I honestly don't think it makes enough of a difference to the economy. When you spend Bitcoin you stimulate growth of Bitcoin and jobs. Think about it. Because of bitcoin I can not afford to buy things from people and this gives them employment. The government is bit going to stop that. Eventually some if that money even if you pay in bitcoin is going to go to tax because of vat and other things. If at some point in the future things need to he adjusted I'm sure the government and the people can work together.
legendary
Activity: 1358
Merit: 1565
The first decentralized crypto betting platform
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.
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?
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