Do people have to pay taxes on Bitcoin? - page 8.

BitcoinGirl.Club

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Farewell LEO: o_e_l_e_o

Quote from: imrul5 on June 27, 2018, 11:41:32 PM

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?

Bitcoin prices are dynamic which makes taxing a bit complicated and unfair especially that the accounting for it id at the exchange rate you get paid at but if this is the only way the USA will allow the ctryptocurrency to be used then its not a bad idea...we just need to get used to the system.

richardsNY

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Quote from: ranman09 on July 22, 2018, 09:29:12 AM

I think there is nothing wrong with paying taxes as you and your family will benefit from it.

Ehm.... You and your family lose a chunk of wealth and that's supposed to be a good thing according to you? You won't ever see one single penny of that money back. It also won't be invested in education, healthcare, infrastructure, etc. I'm paying so much tax over my regular income (close to 50%) and other things, that I would expect to see it reflect the environment around me, but that's not happening. Even more precise, nothing but a major decline has happened in the last 10 years. We're paying more in tax than ever before but the government is still busy trying to cut costs everywhere? Makes no sense at all....

ranman09

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I think there is nothing wrong with paying taxes as you and your family will benefit from it. I think what is wrong here is that they treat bitcoin as an asset but you used it to pay a product that is payable in fiat? I don't know it doesn't makes sense for me. Looks more like they don't want bitcoin for the masses to use.

Vishnu.Reang

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Quote from: imrul5 on June 27, 2018, 11:41:32 PM

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?

So if someone gives me Bitcoins, then I am supposed to pay income tax on it? I don't think that this is a good idea. The IRS must first clarify whether they are considering Bitcoin is property or currency. If it is not currency, then we are not liable to pay income tax.

samarnaaz

newbie

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I think No we should not pay tax on bitcoin rather we should not pay tax for nothing it not need to pay taxes on bitcoin...

gayletot

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today is not yet but the day is coming, when the government of each country sees the bitcoin or crypto it will have the tax. so while we have nothing to do with it.

Seth Nyarko

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The thing is for now you won't see you are paying any tax on Bitcoin coz it's not securities. However, unless Bitcoin is added to assets it won't be taxable. Notwithstanding, once governments begin to tax all exchange sites, then they will also add it to the fees we pay when we assess their sites and that will mean we will be paying tax on Bitcoin indirectly. Wink

BitHodler

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Quote from: 1Referee on July 21, 2018, 07:15:44 AM

I hope you won't ever decide to declare your holdings. I certainly won't. I'm not going to fund criminals.

I don't think I have much choice but to declare at least a certain percentage of my coins. How else am I supposed to use these coins to legally buy a property in the far long term if Bitcoin goes over $100k?

Maybe there are tricky and bumpy ways to get it done alternatively if I dig deep enough, but I'm not really interested in too much hassle. I know it's the easiest way out, but at least it's my decision.

Owning a property where I live has actually some tax advantages as well, so it's not that I am only losing out by swallowing a tax hit over my to be reported coins. Maybe I can even use Bitcoin to pay for that property.

Spending Bitcoin means I'm not subject to direct capital gains that would occur if I convert it to fiat.

Carrelmae10

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..at First, Bitcoin is a crypto currency not an asset..the implementation of imposing bitcoin taxes depends upon on the country that you belong..you need to abide to the rules on paying your taxes in your country and respect their regulations even if it is against your will to pay your tax when you have Bitcoins..

thedarksun

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Quote from: frankiemalton on July 17, 2018, 01:51:22 PM

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

In some countries you need to pay tax from every earning that you got so bitcoin is an earning only after selling it for a "normal" money but law is different in every country.

marseille

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Quote from: angeltee on June 29, 2018, 07:29:39 PM

Bitcoin is not designed for taxes to be paid on it. I beleive the best for government maybe to tax bitcoin users and make it more popular. Just that the charges should be considerate and proportional to the excesses.

Many government agencies have gotten into the potential of tax evasion from bitcoin and crypto. Any transactions you send with bitcoin or other cryptocurrencies are taxed by default. It is very difficult to avoid taxes but for the sake of our security what can be made because this is also in our own interest because our income is still far from our spending for taxes.

Oasisman

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Quote from: maarx on July 21, 2018, 08:28:15 AM

Quote from: imrul5 on June 27, 2018, 11:41:32 PM

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?

Need to accept when the government offers other things to its citizens. Citizens have to contribute to the growth of its nation as well. But the percentage can be considered and looked at. I am sure earning bitcoin is not going cost the government. So the earnings comes through without nations intervention. Even 1 percentage of tax paid to the government on bitcoin earning is a good revenue for the government. Hence if your government asks for tax pay it. But the percentage can be considered.

Percentage would always be considered, I agree with that. We dont let the Government take advantage to the popularity of Bitcoin. These was the common issues from the other country which is why people are contradicting the idea of bitcoin regulation. 10% is already pain in the ass, which majority of the people bawled for, how much more if the other countries would put more than that.

maarx

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cloverdex.io

Quote from: imrul5 on June 27, 2018, 11:41:32 PM

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?

Need to accept when the government offers other things to its citizens on its cost. Hence citizens have to contribute to the growth of its nation as well. But the percentage can be considered and looked at. I am sure earning bitcoin is not going to cost the government. So the earnings comes through without nations intervention. Even 1 percentage of tax paid to the government on bitcoin earning is a good revenue for the government. Hence if your government asks for tax pay it. But the percentage can be considered.

1Referee

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Quote from: BitHodler on July 18, 2018, 05:29:17 PM

I contacted my attorney to have him figure out what happens if someone miraculously gains back access to his old backups, which is a very important matter for me as long term hodler.

The point was that as long as you can prove that the coins haven't been moving, you can freely declare the value of your holdings at the 1st of January. In other words, you don't have to pay tax over the previous years.

I hope you won't ever decide to declare your holdings. I certainly won't. I'm not going to fund criminals.

Quote from: BitHodler on July 18, 2018, 05:29:17 PM

I however don't know how long they are willing to keep that up if people suddenly claim to have gained access back by large numbers.

If people start declaring their sleeping holdings together it means more income for governments, and more (extremely valuable) information about people's wealth flows.

In that regard they will not try to prevent it but even further stimulate people to keep doing it. Governments have the option to make life difficult for people and not get any tax income at all, or to make the process more easy and less stressful which results in a massive influx of tax income the government otherwise wouldn't have. It's just a matter of logical thinking in the end; governments want your money and your information.

yemacake

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the day will come when the bitcoin or the crypto will be available to the goverment of the different countries of the tax. especially and this is gradually being observed by the countries, the government will not be deceived.

mersal

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Quote from: frankiemalton on July 17, 2018, 01:51:22 PM

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

Virtual or physical,it is a currency then it has value so we need to pay taxes according to the rules of your governments.But basically decentralized means we don't need anyone's permission for using it still all government needs taxes to work properly so it is important to pay taxes to our governments even if it is crypto currency.

BitHodler

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Quote from: darkangel11 on July 18, 2018, 03:32:05 PM

Aren't you by a chance in Switzerland? I'm asking because what you've said fits their policies perfectly. In Switzerland you have to pay taxes even if your coins get stolen, so If you do some trades, earn some money, and the exchange gets hacked a couple months later, you still owe money to the government. Fucking leeches!

I'm not from Switzerland, but your example also applies to my jurisdiction. It's theft for sure, but governments don't care what happens as long as it is within the current fiscal year.

I contacted my attorney to have him figure out what happens if someone miraculously gains back access to his old backups, which is a very important matter for me as long term hodler.

The point was that as long as you can prove that the coins haven't been moving, you can freely declare the value of your holdings at the 1st of January. In other words, you don't have to pay tax over the previous years.

It would suck badly if you was forced to pay tax over the last couple of years at once. I however don't know how long they are willing to keep that up if people suddenly claim to have gained access back by large numbers.

darkangel11

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Don't let others control your BTC -> self custody

Quote from: BitHodler on July 17, 2018, 06:22:40 PM

Quote from: darkangel11 on July 17, 2018, 03:17:45 PM

The problem is that some governments (mainly the US) are trying to make you report unrealized gains. Thankfully I don't live in the land of the virtualy free Cheesy

I fit in the same category and I'm from Europe. If that isn't enough, I am also forced to pay tax over my total holdings on a yearly basis. Even if my wealth tanks hard I still have to pay tax.

It basically means that if you have €100,000 on your bank account, you regardless of the situation have to pay 1.5% over that capital every year. In other words, having money costs money, which is completely retarded.

Aren't you by a chance in Switzerland? I'm asking because what you've said fits their policies perfectly. In Switzerland you have to pay taxes even if your coins get stolen, so If you do some trades, earn some money, and the exchange gets hacked a couple months later, you still owe money to the government. Fucking leeches!

Quote

I am not entirely against paying tax, but this form of taxation is actually theft. Calculate for yourself how much of that €100,000 is left after years and years of paying 1.5% in tax.

I always say that taxes should be just and just is asking the same fixed amount of every citizen, preferably in the form of property tax. You live in the area, you pay for the infrastructure, services, and so on. Demanding money from people who have money forces them to invest, take risk and possibly suffer losses.
Percentage based income tax is pure theft, just like social security.

imrul5

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Quote from: entrepmind23 on July 17, 2018, 08:40:46 PM

Quote from: Ayston on July 17, 2018, 06:46:30 PM

Paying taxes on crypto depends on your government, if you have a tax law regarding with crypto then you need to pay since its compulsory, but if there is nothing then why not enjoy the freedom of not having! because in the future all crypto might undergo surveillance for tax monitoring.

If you think about it in the legal sense then all your income should be taxable including income from cryptocurrencies but then some countries aren't that strict in checking the income of some people because they are busy with other things that are worth more so many people or shall I say majority of the cryptocurrency enthusiasts from our country do not pay taxes because there is no strict rule applicable to to it currently. The government may require the platform the people are using though so that it will automatically deduct taxes from the transactions and they wouldn't have a hard time tracing and collecting it individually.

Paying tax and doing charity are great things. But we should keep it in our mind that cryptocurrency platform in a infant stage. Too much rules and regulations can destroy this industry. I don't think it is a right time to impose tax on cryptocurrency.

entrepmind23

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Quote from: Ayston on July 17, 2018, 06:46:30 PM

Paying taxes on crypto depends on your government, if you have a tax law regarding with crypto then you need to pay since its compulsory, but if there is nothing then why not enjoy the freedom of not having! because in the future all crypto might undergo surveillance for tax monitoring.

If you think about it in the legal sense then all your income should be taxable including income from cryptocurrencies but then some countries aren't that strict in checking the income of some people because they are busy with other things that are worth more so many people or shall I say majority of the cryptocurrency enthusiasts from our country do not pay taxes because there is no strict rule applicable to to it currently. The government may require the platform the people are using though so that it will automatically deduct taxes from the transactions and they wouldn't have a hard time tracing and collecting it individually.

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