Do I pay taxes when I sell an alt coin for bitcoin? - page 7.

melted349

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Quote from: roadbits on September 26, 2017, 08:25:03 AM

Quote from: ubeng07 on September 26, 2017, 07:30:14 AM

Quote from: BitcoinMuscle on September 25, 2017, 05:03:56 PM

Quote from: chaosfourever on August 08, 2017, 09:54:38 AM

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?

When you make transactions online(of any kind: paypal, payeer, bitcoin....) or when you buy/sell altcoins you dont have to pay any taxes to your government. If you cash out real money from selling cryptocurrency , depending on your state you have to pay taxes to your government. There are countries where you dont have to pay any taxes for a limit of money(eg.10.000$) but there are contries where you have to pay taxes even for 100$.
If you want to avoid paying taxes when you cash out real money you can use Payoneer because they have their our debit card so your transactions are not eligible to be seen by anyone,even the government

yes exactly some online transaction no need to pay tax and it depends on what transaction your doing.

There is no tax for any online transaction, but there is a fee for all online transaction including bitcoin, PayPal or any other online transactions. What fee you will pay it will go to the service provider that means which source you will use to send your money to another person, for example, banks or exchanging sites etc. so whenever you can convert your alt to BTC or BTC to alt for each conversion you have to pay conversion fee to the site. If they give you to do free of cost then what is the revenue for them so they will collect a small fee for every conversion.

right no tax included and involve just a fee to pay for the transaction they need or want to transac for.

jyotianand01

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Every country has its own taxation rules and you have to pay taxes as per your country tax provisions on the profits gain from trading or rise of price of any coin hold by you in your account, when you sell that. No country can tax on your principal amount and only profit after all expenses will be taxed if you show your earnings in your books.

roadbits

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Quote from: ubeng07 on September 26, 2017, 07:30:14 AM

Quote from: BitcoinMuscle on September 25, 2017, 05:03:56 PM

Quote from: chaosfourever on August 08, 2017, 09:54:38 AM

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?

When you make transactions online(of any kind: paypal, payeer, bitcoin....) or when you buy/sell altcoins you dont have to pay any taxes to your government. If you cash out real money from selling cryptocurrency , depending on your state you have to pay taxes to your government. There are countries where you dont have to pay any taxes for a limit of money(eg.10.000$) but there are contries where you have to pay taxes even for 100$.
If you want to avoid paying taxes when you cash out real money you can use Payoneer because they have their our debit card so your transactions are not eligible to be seen by anyone,even the government

yes exactly some online transaction no need to pay tax and it depends on what transaction your doing.

There is no tax for any online transaction, but there is a fee for all online transaction including bitcoin, PayPal or any other online transactions. What fee you will pay it will go to the service provider that means which source you will use to send your money to another person, for example, banks or exchanging sites etc. so whenever you can convert your alt to BTC or BTC to alt for each conversion you have to pay conversion fee to the site. If they give you to do free of cost then what is the revenue for them so they will collect a small fee for every conversion.

tylerik1

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"SWISSREALCOIN - FIRST REAL ESTATE CRYPTO TOKEN"

I dont have to pay taxes for my trades. Everything else would the horrible!

ubeng07

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Quote from: BitcoinMuscle on September 25, 2017, 05:03:56 PM

Quote from: chaosfourever on August 08, 2017, 09:54:38 AM

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?

When you make transactions online(of any kind: paypal, payeer, bitcoin....) or when you buy/sell altcoins you dont have to pay any taxes to your government. If you cash out real money from selling cryptocurrency , depending on your state you have to pay taxes to your government. There are countries where you dont have to pay any taxes for a limit of money(eg.10.000$) but there are contries where you have to pay taxes even for 100$.
If you want to avoid paying taxes when you cash out real money you can use Payoneer because they have their our debit card so your transactions are not eligible to be seen by anyone,even the government

yes exactly some online transaction no need to pay tax and it depends on what transaction your doing.

joae1975

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If you have a real job that can account for moving the amount of money around you're moving, the IRS will never ever ever ever notice or have an inkling to even investigate. Unless someone narcs on you. Even then, there's no evidence you made money from crypto. What people are suggesting in this thread is to pay taxes on all crypto earnings. This means, if you buy something with bitcoin using bitpay, you're effectively selling your bitcoin for dollars and getting a profit. Every transaction is taxable. Who is going to keep tract of this and how are the feds going to know? Ridiculous! In 2016, only 802 people told the IRS about their bitcoin earnings. 802 dumb scared slaves. The only reason I would ever report it is if I was making more than what my job's income could justify. Taxes are theft anyway. Taxes are unconstitutional. If you're a bitcoin millionaire, or better yet billionaire, take that shit to the supreme court and liberate the American people.

BitcoinMuscle

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Quote from: chaosfourever on August 08, 2017, 09:54:38 AM

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?

When you make transactions online(of any kind: paypal, payeer, bitcoin....) or when you buy/sell altcoins you dont have to pay any taxes to your government. If you cash out real money from selling cryptocurrency , depending on your state you have to pay taxes to your government. There are countries where you dont have to pay any taxes for a limit of money(eg.10.000$) but there are contries where you have to pay taxes even for 100$.
If you want to avoid paying taxes when you cash out real money you can use Payoneer because they have their our debit card so your transactions are not eligible to be seen by anyone,even the government

parat8t9

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It looks like the site BitcoinTax https://bitcoin.tax/r/2UWQxA7SB does actually show dollar exchanges when doing a transaction like BTC/LTC. It takes the value of each of those coins at that time to calculate it.

Not sure if it is actually required, or just playing it safe.

Their FAQ is below:
https://bitcoin.tax/faq

batang_bitcoin

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Quote from: chaosfourever on August 08, 2017, 09:54:38 AM

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?

If your country is putting taxation to crypto currency or there is a regulation about it then you are obliged to pay taxes. And I think this is what's happening the taxation is just happening after we converted our alt coins and sold it to bitcoin > fiat money. That will be the time when we are going to pay taxes when we are going to consume that money in the things that we are going to buy.

Zombie123

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Quote from: sp_skeptic on September 09, 2017, 10:54:17 AM

An amazing amount of misinformation on this thread. I'm answering for the US. I don't know about other countries.

Of course you have to pay taxes on your profits in cryptocurrencies. This is well established.

Whether you have to pay taxes on exchanges of one cryptocurrency for another depends on whether such transactions can be claimed as "like kind" transactions. Whether "like kind" applies to exchanges between cryptocurrencies is controversial. I think that the IRS will eventually rule that these transactions are _not_ like kind and I've read extensively on the issue. Others disagree.

If you choose to treat exchanges between cryptocurrencies as like kind transactions you have to declare them as such on IRS form 8824! Absolutely everyone who trades cryptocurrencies ignores this (except me, of course).

If the IRS rules that these transactions are not like kind, and you have filed form 8824, you are likely to be OK except that you will owe taxes, interest, and possibly penalties. If you haven't filed form 8824 I wouldn't want to be you.

Not a lawyer - just my well researched opinion.

JUST FOR US:-
After doing lot of research this is the only correct answer in this thread unless of coarse you want to do tax evasion. I have talked to several lawyers/accountants and they are all of the opinion you cannot apply in kind for Virtual Currency ( though IRS has not clarified anything). If you do apply in kind you have to file 8824 as sp_skeptic mentioned but soon IRS might rule on it. You will pay tax one way or another even if you defer your tax.. Also remember if you have had assets > 10000 on any international exchange you need to file FBAR as well.

posternat

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Bitcoin is considered a legal commodity and not a currency. The rest fall somewhere under the auspice of sub-commodities, related to Bitcoin. So, your taxes should handle this as an investment return profit. It is best to have a professional do this for you, although it is really as simple as one extra page.

joae1975

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Quote from: sp_skeptic on September 09, 2017, 10:52:17 PM

Quote from: joae1975 on September 09, 2017, 09:48:39 PM

^^ says the obedient slave ^^

Hang on to your principles! I assume you're ok with getting squashed like a bug when the IRS comes looking.

They won't come looking, never have.

pendekar cinta

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should not be taxable each time exchanging currency values may depend on the government of each country that begins to impose a tax payment in my opinion it is getting better in doing it because it is not considered illegal and can be received well in the future.

sp_skeptic

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Quote from: joae1975 on September 09, 2017, 09:48:39 PM

^^ says the obedient slave ^^

Hang on to your principles! I assume you're ok with getting squashed like a bug when the IRS comes looking.

joae1975

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Quote from: undeadbitcoiner on September 09, 2017, 08:54:45 PM

Quote from: sp_skeptic on September 09, 2017, 10:54:17 AM

An amazing amount of misinformation on this thread. I'm answering for the US. I don't know about other countries.

Of course you have to pay taxes on your profits in cryptocurrencies. This is well established.

Whether you have to pay taxes on exchanges of one cryptocurrency for another depends on whether such transactions can be claimed as "like kind" transactions. Whether "like kind" applies to exchanges between cryptocurrencies is controversial. I think that the IRS will eventually rule that these transactions are _not_ like kind and I've read extensively on the issue. Others disagree.

If you choose to treat exchanges between cryptocurrencies as like kind transactions you have to declare them as such on IRS form 8824! Absolutely everyone who trades cryptocurrencies ignores this (except me, of course).

If the IRS rules that these transactions are not like kind, and you have filed form 8824, you are likely to be OK except that you will owe taxes, interest, and possibly penalties. If you haven't filed form 8824 I wouldn't want to be you.

Not a lawyer - just my well researched opinion.

You are rite about we need to pay tax but IRS Form 8824 that is not compulsorily we can report taxes and we need to report taxes, IRS recognize Bitcoin and crypto currencies as property so which will come on Capital Gain and loss which occurs in each and every transaction so if we trade that with any other alt coin and we make some btc than profit btc should converted in USD for that day and calculated tax to report. Each and every transaction profit and loss record should be kept if IRS finds some error they might need that For me that didn't happen yet

Very simple Understanding is If you buy your car in 1200 and sell in 1900 you have to pay Tax for 700 because it is more than 600$, You have to pay each and every capital gain which exceed $600 in a fiscal year.

^^ says the obedient slave ^^

HashFace

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There are a lot of people here saying that if you don't convert your capital gains to fiat, then you are not liable for taxes on your gains ... I'm sorry, but that is not true. Yes, It is easy to hide your gains with Cryptos, but technically, you are required to pay taxes on your trades (or string them together as like kind exchanges), whether you cash out dollars or not.

Think of it like this. If I bought a vacant property for $5000 during the real estate crash, then 10 years later traded it for a boat worth $100,000, the IRS would certainly see that as a $95,000 capital gain, even if I never saw any cash from the deal.

Edit: Again, I'm talking about US law, from my experience as an investor ... I'm not a tax advisor or accountant.

vitarian

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from what i understand, crypto to crypto is not taxable, if you ever sell for fiat it is taxable as capital gains tax, unless it was at a loss

undeadbitcoiner

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Undeadbitcoiner Will not DIE until 1BTC=50K

Quote from: sp_skeptic on September 09, 2017, 10:54:17 AM

An amazing amount of misinformation on this thread. I'm answering for the US. I don't know about other countries.

Of course you have to pay taxes on your profits in cryptocurrencies. This is well established.

Whether you have to pay taxes on exchanges of one cryptocurrency for another depends on whether such transactions can be claimed as "like kind" transactions. Whether "like kind" applies to exchanges between cryptocurrencies is controversial. I think that the IRS will eventually rule that these transactions are _not_ like kind and I've read extensively on the issue. Others disagree.

If you choose to treat exchanges between cryptocurrencies as like kind transactions you have to declare them as such on IRS form 8824! Absolutely everyone who trades cryptocurrencies ignores this (except me, of course).

If the IRS rules that these transactions are not like kind, and you have filed form 8824, you are likely to be OK except that you will owe taxes, interest, and possibly penalties. If you haven't filed form 8824 I wouldn't want to be you.

Not a lawyer - just my well researched opinion.

You are rite about we need to pay tax but IRS Form 8824 that is not compulsorily we can report taxes and we need to report taxes, IRS recognize Bitcoin and crypto currencies as property so which will come on Capital Gain and loss which occurs in each and every transaction so if we trade that with any other alt coin and we make some btc than profit btc should converted in USD for that day and calculated tax to report. Each and every transaction profit and loss record should be kept if IRS finds some error they might need that For me that didn't happen yet

Very simple Understanding is If you buy your car in 1200 and sell in 1900 you have to pay Tax for 700 because it is more than 600$, You have to pay each and every capital gain which exceed $600 in a fiscal year.

Hoganye

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Quote from: bamboylee on September 09, 2017, 11:36:35 AM

You need a tax accountant to answer you that question. any answer here is just an opinion based on what they believe or want to be, but no professional basis. Tax law is different for every country, so contact an accountant in yours.

As per my knowledge, it seems does not has any country have rules for manage Bitcoin and cryptocurrency, so taxes Bitcoin or cryptocurrency users is impossible. If the goverment want taxes us, they need have a rules clearly!

bamboylee

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You need a tax accountant to answer you that question. any answer here is just an opinion based on what they believe or want to be, but no professional basis. Tax law is different for every country, so contact an accountant in yours.

Topic: Do I pay taxes when I sell an alt coin for bitcoin? - page 7. (Read 19340 times)