Converting Bitcoins? - page 2. | Bitcointalksearch.org

Jackl87

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Quote from: NatureMoves on April 02, 2021, 10:50:13 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 guess the rules regarding taxes on trading bitcoin or cryptocurrencies are dependent on where your residence is. In germany for example the profit that you made is free of taxes if you buy and then hold your coin for at least a year. So no trades in this time, no staking and also no liquidity providing and of course you need to prove that the wallet where the coin is owned by you. So every trade even if it is for stable coins interrupts that 1 year span.

jrrsparkles

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Quote from: Matimtim on April 03, 2021, 03:09:58 AM

Quote from: NatureMoves on April 02, 2021, 10:50:13 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?

Im curious of about paying tax. Is there is a country who has a laws ordering that every crypto transaction must pay taxes? Because I think being crypto user's paying taxes to the government about crypto currency transaction is depends on us, or we let the government know our transactions, then in that time we need to pay taxes.

Not for every transaction but for every conversion which means you need to report every trade on KYC submitted exchange and also calculate taxes for the profits made from the trades even though you didn't convert them into fiat. You can avoid tax by using p2p or decentralized exchange but its your decision though.

Matimtim

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Quote from: NatureMoves on April 02, 2021, 10:50:13 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?

Im curious of about paying tax. Is there is a country who has a laws ordering that every crypto transaction must pay taxes? Because I think being crypto user's paying taxes to the government about crypto currency transaction is depends on us, or we let the government know our transactions, then in that time we need to pay taxes.

ReiMomo

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Quote from: NatureMoves on April 02, 2021, 10:50:13 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?

Here is a good article that could be helpful if you will read it.
https://www.cnbc.com/2021/02/19/do-you-owe-taxes-on-bitcoin.html

And yes, you will able to pay tax in any crypto you have either bitcoin or altcoin, which is still the same asset. As the article said, even you purchase and pay for food and any services that offered bitcoin payment, you still have a tax liability.

So, even though how converting you will be made, you are still reliable to pay tax and IRS will always be there for you to oblique to pay tax.

blockman

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Quote from: NatureMoves on April 02, 2021, 01:14:14 PM

I am in the US, looks like I have to pay tax if I convert GUSD to Bitcoin. I have earned GUSD interest in Blockfi so I guess I just kinda have to leave it alone or else I have to pay taxes 😳

Then that's it. On the Legal section, there were similar threads that have asked for the same thing. Just like this thread and read some insightful replies there which answer your question.
(https://bitcointalksearch.org/topic/--5308189)
Go through each of the replies there, there were plenty of helpful explanations.

jrrsparkles

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Quote from: NatureMoves on April 02, 2021, 01:14:14 PM

I am in the US, looks like I have to pay tax if I convert GUSD to Bitcoin. I have earned GUSD interest in Blockfi so I guess I just kinda have to leave it alone or else I have to pay taxes 😳

Yes you need to pay taxes for every kind of earnings related to cryptos, but there is tax slab so if you made less than that then you no need to pay taxes, all you need to do is just to report.

NatureMoves

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I am in the US, looks like I have to pay tax if I convert GUSD to Bitcoin. I have earned GUSD interest in Blockfi so I guess I just kinda have to leave it alone or else I have to pay taxes 😳

blockman

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Check your country's taxation rule. As for the other countries, you will be taxed no matter what you convert as long as your case and status are in profit.
Each country's taxation for crypto is different but there could be similarities, still check it first.

seoincorporation

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Quote from: NatureMoves on April 02, 2021, 10:50:13 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 Bitcoin to ETH that shouldn't be taxed, the only moves that should be taxed are when you buy and sell cryptos for fiat.

In my country, if I spend $1000 in bitcoin, then it goes up and I withdraw $1100, I have to pay tax just for the profit, In other words, I have to pay 16% of $100. That's how it works here, you should read about how does it works in your country.

AakZaki

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in which country do you live. Whether crypto traders fall into the taxable category. In my country there is no tax for crypto traders. The regulations set by bitcoin are also limited to commodity trading. The taxpayer is a local exchange that accommodates all merchants.

NeuroticFish

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If indeed Bitcoin->Ethereum is taxed, Bitcoin->GUSD will be no different.
But best would be to discuss with somebody specialized in taxes from your country (which you didn't specify), instead of relying on the guesses over the internet.

BrewMaster

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there is no difference between ETH or GUSD or other altcoins. if the tax laws say you have to pay taxes when you trade your bitcoin with altcoins then you have to pay taxes no matter which altcoin you choose.

NatureMoves

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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?

Topic: Converting Bitcoins? - page 2. (Read 264 times)