Do I pay taxes when I sell an alt coin for bitcoin? - page 8.

gredisgold88

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

yes u need tax , fee for cash out , if there is no fee for cash out, no profit in exchange ?, and who played exchange in cryptocurrency .

sp_skeptic

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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.

joae1975

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

You only pay taxes if you're dumb enough to report it. Stay under the radar, don't make any more than 5 digit USD moves per rolling 30 days. Use multiple bank accounts, multiple exchanges. Use your wife, your sister, brother. Buy visa gift cards. Buy gold/silver, then sell it. Taxes are theft.

CyNotes

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

Buying and selling your bitcoins have the taxes involved there. Additional fees or charge during your transaction have the competent tax was about 12%. All transactions we make when we buy and sell our bitcoins and altcoin. All banks and money remittances have the big commission on accepting the bitcoin in their transaction. Bitcoin helps the community to get up from disasters or crisis of everyone of us.

europesss

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

No, you needn't pay for the taxes.But bittrex will pay the taxes instead, in another word , the taxes are also from all of traders..

chocolah29

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

It all depends on your country's law. Too bad if you're country have this law because you need to abide this whether you like it or not.
Well as for my country, there's no need to pay tax or whatever fees. We can convert btc into fiat like how much we want to convert. We just need to transfer it to our local wallet and choose where we want to get out money.

Morphling

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

yes, buy,sell and withdraw all need pay taxes to the exchange, but the fees are different, it depends on the exchange, usually they are very cheap, but some maybe very high campare with others

aishyoo17

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

No you do not need to pay any taxes if you will sell your altcoin for bitcoin and buy another altcoin but you will pay fee depend what is the rate of the exchange. You will pay fee in every transaction you will make like buying, selling and if you will withdraw.

asanezz7

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No. You will not pay any taxes when you sell your bitcoins. But you will pay for the withdrawal fees and exchange fees.

GazorpPozorpec

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As far as I know in the legislation of many countries is generally not spelled out the value of the cryptocurrency, not something that would be provisions for tax levies. So what you should not worry.

coinfinder000

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

You should pay trading fees , and withdrawl fees.

Mindin

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SmokerFace

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Quote from: chaosfourever on August 08, 2017, 10:54:38 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?

There's always a taxes or transaction fees on every exchange websites because in that way they'll earn money through transaction fees of the traders.
And on USD when you want to cashout it depends on the wallet on your country and what option you will choose Ex. If you want to withdraw using credit card theres a 2% - 10% fee because of credit card fee and depends on what rate they will put on their website.

Arkann

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It all depends on the laws of a specific country. The state determines what kind of activity is subject to taxation and to what extent. Therefore it is necessary to be interested in the legislation of your country. Now, in most countries, the activity with the crypto currency has not been settled yet.

undeadbitcoiner

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First Of all Your question is Incomplete, But as i was trying to understand according to me and at my current location (USA) we need to pay taxes in the net profit. so if you will sell your altcoin for 1 Btc which you actually bought 3 months ago in 3000$ so you have to keep records of 1 btc total today's value so your net profit is 1848.3 same way to each and every altcoins and most important you have to keep record everyday and you can report bitcoin price for that day, or week

Moana

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Governments would really like it, but they have no idea how to regulate that, and ever lesser idea on how to force you.

Mindin

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Quote from: viking02 on September 07, 2017, 05:06:41 PM

Yes i know you have to pay income tax if you convert the btc into usd. But what about when you go from bitcoin to say lisk? And what about when you go back from lisk to btc to secure your profit? However your profit is not a flat number because that 0.5 btc profit could be 2500 dollars later on or 1800 etc.

I think you would use the transaction value at the date of transaction occurring. Ask at your local tax authority office.

viking02

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Yes i know you have to pay income tax if you convert the btc into usd. But what about when you go from bitcoin to say lisk? And what about when you go back from lisk to btc to secure your profit? However your profit is not a flat number because that 0.5 btc profit could be 2500 dollars later on or 1800 etc.

BlockchainGod

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I'm not a lawyer, but as far as I know you have to pay income tax. That is, you have to pay tax only when you sell bitcoin or another cryptocurrency to the dollar.

adamagb

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In the US at least, selling the bitcoin in order to buy the alt coin is considered a taxable event.

Just like if you sell one stock to buy another stock the sale is taxable too.

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