Topic: Do I pay taxes when I sell an alt coin for bitcoin? - page 3. (Read 19340 times)
Taxation of cryptos is a new and complex area that will vary for different countries. Even most of the CPAs do not know how to go about handling crypto taxes.
If it's direct transaction from altcoin to bitcoin with no any fiat in the middle or any bank transaction, you won't need to pay for taxes because they can't track that.
Paying taxes are such a pain. Too much money is being drained from me that I dont really understand why they take so muchDo I need to pay taxes if I sell an alt coin for bitcoin then rebuy a different alt coin. I never took out actual USD so I am unsure how that would work. Or am I only taxes on actual USD made when I cash out?
It actually depends on how you are selling your bitcoins. It depends on whether your local exchange includes taxes on your buy/sell. If I need some money then I sell my Bitcoins to my close friend and he pay me in cash so I don't pay any taxes right now.
Of course, every trader who makes a successful buy/sell order pays tax indirectly. Exchanges are taxed by the governments and users of these exchanges are charged trading fees. Also, the final conversion of crypto to fiat comes with the payment of tax indirectly as these registered crypto merchants are taxed by the governments.
If it's direct transaction from altcoin to bitcoin with no any fiat in the middle or any bank transaction, you won't need to pay for taxes because they can't track that.
It should not be that simple. As far as I know, if there is earnings, the tax have to be paid. The rules should be thoroughly researched on google, then should make decision.but from what I hear, crypto owners will be taxed every year such as vehicles and homes.
I have not confirmed whether it is banar or not. maybe someone will explain later to you.
If it's direct transaction from altcoin to bitcoin with no any fiat in the middle or any bank transaction, you won't need to pay for taxes because they can't track that.
It should not be that simple. As far as I know, if there is earnings, the tax have to be paid. The rules should be thoroughly researched on google, then should make decision. If it's direct transaction from altcoin to bitcoin with no any fiat in the middle or any bank transaction, you won't need to pay for taxes because they can't track that.
Paying taxes are such a pain. Too much money is being drained from me that I dont really understand why they take so much
If it's direct transaction from altcoin to bitcoin with no any fiat in the middle or any bank transaction, you won't need to pay for taxes because they can't track that.
Tax payment is dependent on your country of residence, In my home country government do not regulate CRYPTO transaction, so tax are not collected from transaction emanating from CRYPTO, I only pay tax when my banking transaction exceed 10,000, 000. For government to collect tax it has to be only when you convert your Altcoin to fiat.
Do I need to pay taxes if I sell an alt coin for bitcoin then rebuy a different alt coin. I never took out actual USD so I am unsure how that would work. Or am I only taxes on actual USD made when I cash out?
All i know i that, we won't get charged with tax if we are exchanging between altcoin vs bitcoin vice versa. what we have to pay would be the transaction fee for the miner's reward. 
If there are tax laws then yes you need to pay, some exchanges also keep track of your orders/transactions to make things easier for you.
It depends on the country, other countries requires you to pay taxes every time you pay and withdraw. But other countries doesnt require you to pay taxes
Do I need to pay taxes if I sell an alt coin for bitcoin then rebuy a different alt coin. I never took out actual USD so I am unsure how that would work. Or am I only taxes on actual USD made when I cash out?
Well, if you want to be honest with your country , then of course you can show them trading on your account , and from the profits to pay taxes, but for example in my country the payment for the crypto currency is not yet until 2021!What country is this?
You do not need to bother to think of coin sales tax, because it is automatically on the exchanger. Of course, each exchange has a different fee. an average of 0.5% per transaction. And there is an exchanger without fees.
Yes, its the job of the exchange and you can easily see the fees when you withdraw your funds. You are still not subject to income tax, unless you declare it and you have to pay for that. Personally, I’m not paying any taxes aside from the fees and its really good. 
In my experience on exchanges platforms on where the trading happens there are no actual taxes you need to pay when selling your altcoin for bitcoin but every exchange sites has their own trading fees where in you need to pay a little amount in order to do transactions but some exchange don't have this.
Probably you're asking how do they earn? They are earning through withdrawals if you can notice that whenever you withdraw there's a withdrawal fee you needed to pay in order to withdraw your funds... This is how exchange earn.
To answer your question and conclusion, no there's no tax whenever you sell your altcoin for bitcoin just fees on during exchange (trading) or during withdrawal.
Probably you're asking how do they earn? They are earning through withdrawals if you can notice that whenever you withdraw there's a withdrawal fee you needed to pay in order to withdraw your funds... This is how exchange earn.
To answer your question and conclusion, no there's no tax whenever you sell your altcoin for bitcoin just fees on during exchange (trading) or during withdrawal.
You do not need to bother to think of coin sales tax, because it is automatically on the exchanger. Of course, each exchange has a different fee. an average of 0.5% per transaction. And there is an exchanger without fees.
You're right with what you said but this does not work for all countries and in Germany people pay taxes per every successful trade or crypto to fiat transaction while some countries taxnwere pay by the crypto currency exchange. I will advice the OP know how crypto tax are pay in his country. 
You do not need to bother to think of coin sales tax, because it is automatically on the exchanger. Of course, each exchange has a different fee. an average of 0.5% per transaction. And there is an exchanger without fees.
Do I need to pay taxes if I sell an alt coin for bitcoin then rebuy a different alt coin. I never took out actual USD so I am unsure how that would work. Or am I only taxes on actual USD made when I cash out?
It all depends on the country in which you are located, and what policy this country adheres to in the legislation on cryptocurrency activities.
There are countries in which cryptocurrencies are taxed and those where there is no tax on cryptocurrencies.
As far as I know, at the moment the cryptocurrency is not taxed, so the answer is negative, you do not need to pay taxes for the cryptocurrency. It is enough to pay taxes for the dollars that you get from the sale of cryptocurrency. 
Do I need to pay taxes if I sell an alt coin for bitcoin then rebuy a different alt coin. I never took out actual USD so I am unsure how that would work. Or am I only taxes on actual USD made when I cash out?
Well, if you want to be honest with your country , then of course you can show them trading on your account , and from the profits to pay taxes, but for example in my country the payment for the crypto currency is not yet until 2021! Jump to: