Converting Bitcoins? | Bitcointalksearch.org

Distinctin

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Quote from: Traderbtcc on April 08, 2021, 06:12:13 PM

Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

I can't see any difference between both, bitcoin to Ethereum will be taxed I don't see any reason why Bitcoin to GUSD won't be taxed too, same goes for any altcoin you trade it into, it will surely be taxed, there's no escaping that, the government said you should pay tax just obey the law and pay the tax to avoid getting arrested.

If that already been a mandate of the country, there is no way to escape from that. Well, never find a reason why we should avoid paying our tax, that only leads to violations.
As long as it is a fair amount collected from us, there is no need to question that but if that be going abuse and the collections are high that certainly be needing close attention. But, I suppose to think that it was fair, the government is also basing of what you have declared. So, maybe we have not to declare all our holdings in order to pay small tax...lol

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

I can't see any difference between both, bitcoin to Ethereum will be taxed I don't see any reason why Bitcoin to GUSD won't be taxed too, same goes for any altcoin you trade it into, it will surely be taxed, there's no escaping that, the government said you should pay tax just obey the law and pay the tax to avoid getting arrested.

Dexion

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What? convert btc - eth taxable? if indeed your country applies these rules you really have to pay it, because I personally just heard that it is included in taxable matters, in my country it applies if I convert it into local currency, and only profits are subject to tax because it is considered as income.

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Luckily my government taxation laws are somehow different than what you have mentioned. Because I do not need to pay taxes for converting may bitcoins into altcoins but I need to pay taxes when I am converting bitcoins into my local fiats and then I'm withdrawing them into my bank account and after that also I need to pay taxes only after exceeding some level not for the each and every transactions.

This is about only for income tax but for every transaction my exchanges will be directing some fees which are including tax and I guess that tax will be paid on behalf of me to the government. So, basically I'm not worrying about taxes when I'm converting bitcoin into my local fiats until I reach some limits.

wheelz1200

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Depending on your location yes. A transaction is a transaction and in places that tax those transactions then yes you will owe taxes on the net gains you claim.

isaac_clarke22

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I think regardless of the coin you convert at, you will still be taxed not sure if there would be difference but since it is all crypto coins then surely the same would still apply, OP.

zaim7413

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Quote from: fia_naila on April 08, 2021, 04:53:05 AM

Yes it will be taxed too. I think every time you make a trade it will be taxed, but how come you trade in that place ? And thats why people now move to Dex, they wont be taxed every time they trade the coin. Try to use dex if you want to trade and you only taxed when you withdraw to fiat.

I think that not all exchanges apply taxes even though almost the average stock exchange applies it to every trade, and that is also very reasonable because traders use other people's stalls, namely exchanges, now on the local exchanges I use there is no tax application in trading, only in the form of withdrawal fees that are applied by the exchange.

fia_naila

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Yes it will be taxed too. I think every time you make a trade it will be taxed, but how come you trade in that place ? And thats why people now move to Dex, they wont be taxed every time they trade the coin. Try to use dex if you want to trade and you only taxed when you withdraw to fiat.

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Quote from: Eureka_07 on April 03, 2021, 09:15:26 AM

Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Is their any tax for exchanging Bitcoin to your region? What region do you belong? In our place, we just worry for the exchange fees that trading platforms are deducting when we are doing some trades. Make your first that converting so is taxable to your country, if not, there's ko need to report.

Even though your country have no taxes for crypto specifically still you need to report your earning to your governments, maybe you are not aware of it but everyone who is earning should report their earnings and gains to their country so if you earned more than the allowed limit then you should pay certain percentage as income tax and it depends on the country but still every country in this world has income tax.

J1mb0

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

People on this forum do not know where you are from so they cannot answer your question.
I think you should learn this in the local community where you live, surely someone will understand tax law and give you the correct answer.

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It is best to consult or seek professional help regarding your country's taxation law. Each country may have a different approach regarding cryptocurrency taxation, so you will never get a straight answer here that may answer your question directly.

to be honest I am still confused about the taxation issue for the ownership of the cryptocurrency in question.
So far, it is not the user who pays taxes from a company in the country that is directly related to the ownership or place of crypto-asset transactions.

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

We don't share the same tax laws here. We probably have different tax laws, your country and mine. But I don't think there is a tax if somebody is converting Bitcoin to Ethereum. Of course, I am not saying it is not possible in your country. But I cannot understand the reason behind it if it indeed exists. So consult an accountant and be cleared on that issue.

On my own level, there is no tax from exchanging Bitcoin to Ethereum.

acdc

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It is difficult for people to advise when they do not know which country you are from, because each country will have different regulations on taxing cryptocurrencies.
I think you should do your own research about the country's tax laws and give your own answers.

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Which country are you from
I've never heard of a switch between two cryptocurrencies taxed, people usually do it at exchanges and they only incur a small fee.

Cling18

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I think things will depend on the country of your location. There are some transactions that are being taxed based on your place and the sad part is, you can't scape from it. We're just too lucky because we're not being taxed in our country so, despite the high fees, we could still handle each transaction.

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Just pay the tax and you will be fine or when you are avoiding paying the tax and you may need to read this article

https://www.cnbc.com/2021/02/24/failure-to-report-crypto-on-tax-returns-can-lead-to-trouble-with-irs.html

Quote

If you hold a stablecoin such as USD Coin that is valued at $1, and you bought it for exactly $1, you have no gains or losses when you sell out of that stablecoin. So while technically stablecoin transactions are taxable and still reportable, there’s no gain or loss to claim.

source: https://www.coinbase.com/learn/tips-and-tutorials/crypto-and-bitcoin-taxes-US

It's clear that even if you are owning all kind of stable coins and you should have reported it on your tax report.

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

If you convert your bitcoin in the exchange, you do not get taxed because you trade it, and that will happen too if you convert it into GUSD. But if you send the money from the exchange or the other third party to your bank account, you might get taxed and you need to pay that taxes. Maybe you need to ask your regulator or government who is in charge of that thing so that you can get the right answer.

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If it happens that crypto taxes have been applied to your country, no matter what you do, you have to pay it.

Why you are worried about paying taxes? Have it cost you a lot and that gives a reason for you to escape? If that is not the case, better help yourself to accept it.

Anyway, maybe we are lucky that it never happens to our country and we pay no taxes for anything we do about our cryptos. But I was expecting that kind of scenario in the coming days especially when major/big companies are joining then.

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Is their any tax for exchanging Bitcoin to your region? What region do you belong? In our place, we just worry for the exchange fees that trading platforms are deducting when we are doing some trades. Make your first that converting so is taxable to your country, if not, there's ko need to report.

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Quote from: NatureMoves on April 02, 2021, 11:50:13 AM

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

You will always send repot to the IRS, you will always be taxed based on your report about owning cryptocurrency. it will be useless even you are converting it hundreds times.

You will never able to avoid the taxation by IRS or you will face a big problem.

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