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.

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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.

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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.

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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.

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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.

Jackl87

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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 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.

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Quote from: Matimtim on April 03, 2021, 04:09:58 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?

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.

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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?

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.

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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?

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.

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Quote from: NatureMoves on April 02, 2021, 02:14:14 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.

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Quote from: NatureMoves on April 02, 2021, 02:14:14 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.

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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 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.

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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.

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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? (Read 258 times)