Do we need to pay income tax if we earn through Bitcoin or Altcoins?? - page 3.

Omega Weapon

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Quote from: vsrsatish on September 11, 2017, 11:07:41 PM

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins?? Huh

Until bitcoin gets legalized and crypto currencies get regulated,we are free to earn from bitcoin or altcoin and it will not be taxed.

But in japan,where it is legalized,i hope that it would be taxed.In australia too,it would be taxed.But to avoid double taxing in australia,when bitcoins are bought or sold in exchanges or other trading platforms,it would not be taxed.

In our country india,still there is no legalization and regulation over crypto currencies,so i enjoy tax free earnings from bitcoin.But soon after four months,when bitcoin gets legalized,then things would change totally upside down.

This is not correct, all your income needs to be reported and you need to pay your taxes on it, even if you won the lottery you need to declare that income, in theory even criminals must declare their earnings but since their earnings comes from illicit acts then they do not do it and that is why some of them are caught, since their lifestyle does not match their declared earnings.

yishak

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As far as I know there are no such thing as taxing when it comes to all cryptocurrencies as a whole and I don't believe that its possible to tax them unless you government has legalized all cryptocurrency exchange sites and wallets which will be pretty hard to accomplish thanks to the blockchain.

DoublerHunter

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The cryptocurrencies are decentralized and that is bitcoin and other altcoins and that is why the government cannot do anything about it but to just regulate and they cannot tax it and that is an advantage for us because we can get our income as a whole and we don't need to worry for the taxes or extra fee that we are going to pay so it is very good for a source of income like this and that is why a lot of people are getting into it.

Laser_Man

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Nope. Since crypto is not recognized by the Government as of now. so, we dont need to pay income tax in our trading/investing in Bitcoin or in other Coins.

MisterKT

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As long as the money you wire back to your bank account does not exceed that that was transferred to the crypto account, it is ok.
Another option is to keep the money in you crypto account.

sapnu

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Quote from: vsrsatish on September 11, 2017, 11:07:41 PM

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins?? Huh

I don't think so. Altcoin and Bitcoin are decentralized and is an open source system meaning, they are both not under the government. I think we are not and there's no need to pay income tax since the source of income is not under the government's control. But still, we are paying tax when we buy things using fiat converted from Bitcoin or altcoin or simply, the profit from the investment in cryptos. So technically, you are still paying tax but not specifically income tax.

eaLiTy

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Quote from: ropyu1978 on October 07, 2017, 10:17:40 AM

I don't know. because in my country there is no tax that must be paid in transactions bitcoin or allcoin.
every country has rules and laws regarding other bitcoins and cryptoes. to my knowledge, depending on the location and country where you live.

There might not be a specific tax for you to pay for the transactions in bitcoin and alternative coins but when you convert your coins and send the money to your bank account then you are liable to pay the tax either way even if they have not legalized crypto currency ,it all depends upon how much you are earning and if it exceeds the taxable limit you are liable to pay a tax.

bncbnc

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Quote from: Franco-wiz on October 07, 2017, 04:53:36 PM

I personally don't think we have to pay any taxes on any altcoin for the fact that they bankers didn't create them, Simple principle give to Caesar what belongs to Caesar. Look at Caesar as the world banker, With that in mind they don't own altcoins so we shouldn't pay them a dime.

in fact we have to pay income tax on legal currency and in most of the place governments do not turn bitcoin as legal currency there for i think that it can also be the reason that we are not paying income tax on bitcoin. In future i think when bitcoin will become as legal currency then we will pay tax on it, but in current time i do not think that we are paying tax on bitcoin.

X7

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Quote from: vsrsatish on September 11, 2017, 11:07:41 PM

Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins?? Huh

There is only one correct answer to this question, SPEAK WITH A TAX ACCOUNTANT IN YOUR RESPECTIVE TERRITORY. Laws differ from place to place.

richardsNY

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Quote from: Franco-wiz on October 07, 2017, 04:53:36 PM

I personally don't think we have to pay any taxes on any altcoin for the fact that they bankers didn't create them, Simple principle give to Caesar what belongs to Caesar. Look at Caesar as the world banker, With that in mind they don't own altcoins so we shouldn't pay them a dime.

Do you really think the government cares what it is? Their only priority is to collect as much tax income as possible, period. If you buy Bitcoin like $50K in Bitcoin, depending on what country you're living in, you might end up paying tax over that amount. On top of that, if you cash out to secure profits, you once again need to pay tax, but now over your profits. Crypto in general isn't a joke anymore due to the government catching up and forcing through regulations. The only question is whether or not people actually declare their profits and such, and let this be something I highly doubt.

pat4cryptoreal

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Tax are normally paid to government by the citizens so we do not need to paid tax since bitcoin is not control by government. I think bitcoin is that concept that grant us total financial freedom.

Franco-wiz

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I personally don't think we have to pay any taxes on any altcoin for the fact that they bankers didn't create them, Simple principle give to Caesar what belongs to Caesar. Look at Caesar as the world banker, With that in mind they don't own altcoins so we shouldn't pay them a dime.

Quietman

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Yes. Bitcoin is considered as income. But apparently, bitcoin is very anonymous and even the government doesn't have control with you earning bitcoin. This is also an issue to be raised when the government legalize bitcoin. The government will probably think of ways how to get income tax from bitcoin users.

Cindy1983

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Every country has their own rules and in my country I don't have to pay tax for Bitcoin income cause it's still not legalized in my country so it's still not goods or currency that why their no tax for Bitcoin income. But maybe it'll be changed in next 2 years cause the government in my country is going to legalize Bitcoin as a currency and I can use it to purchase anything.

zeze18

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yes so far i don't think there is a binding rule to pay taxes on the profits derived from our efforts on bitcoin or altcoin, except to exchange paper money, certainly there are some legal bitcoin countries that will impose taxes on such exchanges.

Kronos21

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Quote from: darkangel11 on October 07, 2017, 02:06:13 PM

From what I've read in different threads and articles you don't have to pay taxes if you're earning coins without turning them into fiat or other physical goods. It's not because you shouldn't do it, but because nobody can prove how many coins you own. When you convert it into fiat, you'll get the money into your bank account, which connects the wealth with your real ID. Same thing happens when you buy a car or a house.

Totally agree with you. I do not understand why do not understand the miners and the developers. Instead of uniting efforts to create conditions stimulating the development of trade and the spread of the use of bitcoins directly without exchanging for Fiat they are fighting for profit.

darkangel11

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From what I've read in different threads and articles you don't have to pay taxes if you're earning coins without turning them into fiat or other physical goods. It's not because you shouldn't do it, but because nobody can prove how many coins you own. When you convert it into fiat, you'll get the money into your bank account, which connects the wealth with your real ID. Same thing happens when you buy a car or a house.

Marry Finch

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Income tax must be paid if it is directly established by the state in the place of residence. In other cases, you can pay income tax on the profit from crypto currency at will.

roshanface123

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Rules and regulations of each country is different from other countries .In this situation the payment of tax on our income is fully depends up on the country and the rules held on it.Tax payment is the duty of a person for having part of the development of their country.Some of the countries are not accepting any tax amount from bitcoin because it's a crypto currency.But most of the countries are taking bitcoin as a source of income instead of crypto currency,so in that situation we have to pay the tax fee on our profitable income that we earned from bitcoin.

iram3130

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Depends on which country you live in. And hope you bought or earned bitcoins. If you have bought for $2500 and sold them for $4000 then for the profit you got was about $1500, for that you'll be charged income tax. Government's still think it as an investment plan.

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