Do people have to pay taxes on Bitcoin? - page 12.

pavka

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Quote from: imrul5 on June 28, 2018, 12:41:32 AM

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

It depends on how to look. For the state this decision is simply excellent, as the budget will be filled, and for taxpayers this is not a particularly pleasant innovation, as they will have to give part of their income.

Harlot

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I think that is the fair way of calculating the tax of what you owe to the government. You really supposed to convert it to your local currency in order to avoid any kind of discrepancies. It is the same way as a domestic company earning from its international branch, their foreign fiat currency earning is always converted to at the current exchange rate during that time. Converting it to a later date will only make their earnings also subject to capital gains tax which I don't think is an attractive option for any income earner.

MichaelMiranda

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It differs from country to country. Many country accept Bitcoin without putting any rules and regulations on it. There are some other countries who adopt Bitcoin but by putting some rules and regulations on it in the form of taxes.

audaciousbeing

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Quote from: imrul5 on June 28, 2018, 12:41:32 AM

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

You are actually conflicting the two types of tax here. One is income tax and the other is capital gains tax. If the US is treating bitcoin as property as you have claimed, then the issue of being paid in bitcoin does not arise. You can only be paid in bitcoin and taxed if bitcoin is subjected to income tax but in the case of property, it is when you sell your bitcoin for dollars that you will pay capital gains tax just like when you sell a building. In addition to that, you are then allowed to deduct the cost of buying the coin and other incidental cost incurred that can be proven to be essential to carry out the trade before the balance 'Capital Gain' is then taxed depending the on the CGT rate in the country or if a specific law is made to cover crypto currency.

Kemarit

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Quote from: salinagomez on June 30, 2018, 11:19:23 AM

Well, I think it is not a bad decision. Giving tax is not bad at all. Tax is good for a nation and if people pay tax for BTC the government will also remain silent and the investor will be able to do business nicely in a good manner.

LOL. Paying taxes in bitcoin doesn't mean that the government will relax on crypto crackdown. On the contrary, that's why they are putting tax on it, because they really wanted to stop and at least run at people who they think are hiding tons of money in crypto. As for paying taxes, if you are in a country wherein your taxes really go to a good cause, then I don't have any qualms paying it. However, it if would just go on the wallet of unscrupulous and corrupt politicians then that's a different thing.

Oasisman

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Quote from: imrul5 on June 28, 2018, 12:41:32 AM

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

It is a good thing for Bitcoin, mainly because, it will protect the investors and future investors from money laundering and other criminal activities. Taxes on Bitcoin enables to take legal actions whenever there are stolen Bitcoin and retrieving it is possible with the help of the police cyber crime division.
Taxes is really necessary for cryptocurrency since it is considered as a form of investment that can generate profits.

Thanasis

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Paying taxes is indeed for a government because all our money is important to run the governments and whe they are asking for it you have no other option other than paying.But in my opinion paying fair amount of taxes from our earnings is good but many governments are asking for too much of taxes.

Oceat

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Quote from: imrul5 on June 28, 2018, 12:41:32 AM

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

If they know who you are then you gotta pay for what they have requested and i think it only exist when you are trying to withdraw your money from any exchanges. More over the government really don't know your wallet address, the only thing that they know if you make contact with the exchanges which is under in your government.

And i think it is good with just a small amount of your profit, it's not that bad to pay compared to your profit.

izanagi narukami

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My local exchange apply tax when I try to withdraw and it's a good decision, IMO.

Why ?
We are helping the company paying tax , from us to us , so it's kind of win win solution !

marielbeckham

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I consider that it would be a right decision.

ahmadbhatti

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No Bitcoin is independence currency and many countries considered it an illegal so Bitcoin taxes depends on government permission and legality. Some countries don't permit bitcoin as legally so there taxes not count.

sheenshane

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Quote from: imrul5 on June 28, 2018, 12:41:32 AM

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

A lot of thread asking paying tax is good or not, well, on my own if you are in the US you could not escape from paying tax because of that's our obligation to pay for the sake of our economic growth. In paying a small amount you contributed to the development in your country and USA now is the most powerful among all countries.
So, your question if it is good or bad for me, it is good otherwise it is helping as well.

imrul5

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Quote from: BitHodler on June 30, 2018, 06:27:00 PM

Bitcoin isn't an escape from tax. Quite some people believe that the lack of regulations means they are exempt from paying tax, but thats just nonsense. Legally all income is taxable. It's however up to the people to declare it.

If you are confident that everything you do and earn remains under the radar, then feel free not not pay any tax. What the government doesn't know won't harm you. Don't financially support them when it isn't necessary.

If your information is logged and saved on servers (exchange servers for example) for ever, then not paying tax will result in more problems than when you would have paid. Coinbase's IRS case speaks for itself.

Yes, this is correct. No one escape from paying tax in terms of transacting the BTC . Other government also should impose proper regulations on BTC transactions.

BitHodler

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Bitcoin isn't an escape from tax. Quite some people believe that the lack of regulations means they are exempt from paying tax, but thats just nonsense. Legally all income is taxable. It's however up to the people to declare it.

If you are confident that everything you do and earn remains under the radar, then feel free not not pay any tax. What the government doesn't know won't harm you. Don't financially support them when it isn't necessary.

If your information is logged and saved on servers (exchange servers for example) for ever, then not paying tax will result in more problems than when you would have paid. Coinbase's IRS case speaks for itself.

Oilacris

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Quote from: imrul5 on June 28, 2018, 12:41:32 AM

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

Making bitcoin as a property to get tax from it? Well government can really make their own laws if they do want to. In general sense if we do talk about tax then its good for the economy since this is the thing do helps out to give out progress and development on a certain place which i do consider it on having a big role on entire aspect and as a citizen we are obliged to pay but since we do talk about bitcoin taxes then if its said so then you should follow if you dont like to experience problems later on.

Quote from: tegarp90 on June 29, 2018, 09:27:06 PM

Quote from: imrul5 on June 28, 2018, 12:41:32 AM

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

In Indonesia bitcoin is banned but there are a regulation for paying tax from earning bitcoins, but the government can't track em, so people mostly not paying tax and hiding their wealth to bitcoin.

Thats the beauty of it where we can hide of ourselves from authorities when using up crypto as long you arent using exchangers or local wallet providers then you can really hide out yourself.

Ridwan Fauzi

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If the government provides a positive contribution to the development of cryptocurrency I would strongly agree, this reason will make other countries that prohibit the use of cryptocurrency will at least rearrange in response to the problems that will arise. But if the government can not make a good contribution to cryptocurrency, in other words they only receive income from taxes alone I think it is the worst idea and only a fool will accept.

GaryCynthia

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It can be good as there will hardly be any security issue if that happens. Besides, the demand may also get increased due to this.

angelfaria

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I don't think they have to because it does have any presents in the real world every thing is online based, I don't think any country goverment still demaded tax over electronic currency, so no taxes are need because the holder will never able to convert it in to real money

Lancusters

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Quote from: salinagomez on June 30, 2018, 11:19:23 AM

Well, I think it is not a bad decision. Giving tax is not bad at all. Tax is good for a nation and if people pay tax for BTC the government will also remain silent and the investor will be able to do business nicely in a good manner.

I don't agree with you. Governments owe nothing to people who voluntarily pay taxes. We all pay taxes in Fiat and that we live better from it? I think we need a different tactic. Governments should offer better living and business conditions. Only after that you can pay taxes. Practice shows that the government does not want to do anything without pressure from the people.

salinagomez

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Well, I think it is not a bad decision. Giving tax is not bad at all. Tax is good for a nation and if people pay tax for BTC the government will also remain silent and the investor will be able to do business nicely in a good manner.

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