Topic: Do we need to pay income tax if we earn through Bitcoin or Altcoins?? - page 6. (Read 2048 times)
September 28, 2017, 05:16:05 PM
I think we should be but the current setup of cryptocurrency does not enable us to pay for the taxes. Government can track our profit, yes but the problem is how the government look at the cryptocurrency. They do not have a written rule about it yet, (to some country probably but majority does not have) so basically the constitution of several contries does not cover digital currency for taxation yet.
September 28, 2017, 04:59:55 PM
Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins?? 
You have to pay income taxes for making profit by investing in bitcoin/altcoins because that is an income. It can also depend on your country laws because laws are different in every country. In most of the countries you have to pay a tax for that but I know for sure that in some of them you dont have to pay. It also depends on how much you earn through trading. Check closely your laws
September 28, 2017, 04:53:34 PM
I sure with the existing rules and regulation everyone who makes money trading should pay the tax as long as you convert them to fiat currency you are obliged to pay your tax and if not you would end up in trouble at a later time as you would be forced to pay fines for not filing your taxes properly.
It's not only if you convert your coins to fiat, but also if you gain profit from trading solely crypto versus crypto. Important thing to focus on with regulations being stricter every year, is that while we don't know it, the exchange in question might be sending all our trading information to the government. I haven't paid any tax over my gains at all since I bought my first Bitcoins in 2013, so I gave my local government a while ago a call to ask what their stance is and in what category earnings through crypto fits, and it should be pointed out that I was happily surprised to find out that the tax over my gains sit below 1.5%. Negative aspect of me declaring everything I hold in Bitcoin is that my overall wealth increases significantly in the eyes of the government, where the ~1.4% tax I already pay over my fiat wealth will now result in the government gaining more from me.
September 28, 2017, 04:39:09 PM
Well that all depends on your local laws, but you will prop need to, as most goverments want tax on anything they can get their hands one 
September 28, 2017, 04:33:56 PM
Strictly speaking yes you should, I imagine in the future there will be stricter rules and recognition regarding bitcoin and exchanges so the governments don't miss out on extra tax money.
I sure with the existing rules and regulation everyone who makes money trading should pay the tax as long as you convert them to fiat currency you are obliged to pay your tax and if not you would end up in trouble at a later time as you would be forced to pay fines for not filing your taxes properly. September 28, 2017, 04:22:09 PM
Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??
That depends on your local laws. If your country has legalised bitcoin, then there must be some kind of tax burden attached to it. However, I always include my bitcoin income to my tax filing under "income from other sources than salary" just to be on a safer side.
September 28, 2017, 04:21:27 PM
All income profits should be taxed by the law, so, basically yes, we should to give a percent to the government, but as I know nobody do it, me too. After legalization of Bitcoin and mentioning it in all possible laws we will must to pay the tax, in other case we are going to be punished by the law, again.
That's the reason why Bitcoin legalization has two sides to me. Good one - bitcoin is going to be acceptable in the most of place and the price is going to be high. Bad one - regulation by the Government and taxation.
That's the reason why Bitcoin legalization has two sides to me. Good one - bitcoin is going to be acceptable in the most of place and the price is going to be high. Bad one - regulation by the Government and taxation.
September 28, 2017, 04:17:36 PM
Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??
Of course that is a yes. Since you gained from trading or investing in any cryptocurrency, paying income tax is your obligation. However, this depends on what specific country you resides. Some country imposes tax on their income in bitcoin while some do not. Well for me, it is better that there were no tax at all. It is not that I do not want to contribute to the economy, it's just that tax are sometimes unfair for the taxpayers. They impose big percentage.
September 28, 2017, 04:13:02 PM
Usually that depends on country because I don't have to pay taxes on trading, currently situation is like that but if I receive 100K monthly, then of course no one cares what I do, I have to pay taxes but on small amount of money, no one cares about that.
But if you have official and registered business, then no one cares about bitcoins and altcoins, you do something = you have to pay for it.
If you are talking about taxes then everybody cares because it is quite high taxes which people cannot effort so i will let you know that they should reduce taxes first then nobody will be care. But if you have official and registered business, then no one cares about bitcoins and altcoins, you do something = you have to pay for it.
September 28, 2017, 04:09:32 PM
Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??
For every profit you earn online you have to pay income tax but it depends on your country and how much fiat do you receive for selling your bitcoins. Some countries take tax only after reaching a certain limit(eg.10.000$), but for a lot of contries you have to pay tax for any profit you earn. If you exchange only a small amount I dont think someone is going to knock to your door because of not paying the tax, but if the amount is big then you will look suspiciousP.S: We are talking here if you exchange you altcoins/bitcoin in fiat. If you use you bitcoin online there is no tax.
September 28, 2017, 04:07:11 PM
In addition to OP's question, I wonder if there's any difference between countries in this regard? The IRS in my country considers crypto as parts of someone savings and thus one could be taxed quite heavily if holding 20BTC but 0 euro/USD. However, funds that are in the 'cryptosphere' are next to impossible to check for the IRS so this generally isn't a real concern.
Think of gold.
Nobody will tax you because the ring your wife has is worth 20x more.
The thing with crypto is that you hold basically a sting of letters and numbers.
Those don't have any value unless you use them or you exchange them.
And once you do, unless you use localbitcoin in person cash transactions the IRS will probably know how much you;ve just earned before you make your mind about paying or not.
With the fees that we encounter in using exchanges which is vary per withdrawal methods, it's like paying taxes too. Plus the sell rates you have to deal since we have no choice but to withdraw and convert bitcoin at that specific platform.
Those are not taxes, those are fees set by a private company for a service.
Just like my bank is taxing me 5 cents for every balance check on my debit card at the atm.
Nothing to do with taxes.
September 28, 2017, 04:04:44 PM
Strictly speaking yes you should, I imagine in the future there will be stricter rules and recognition regarding bitcoin and exchanges so the governments don't miss out on extra tax money.
September 28, 2017, 04:01:58 PM
With the fees that we encounter in using exchanges which is vary per withdrawal methods, it's like paying taxes too. Plus the sell rates you have to deal since we have no choice but to withdraw and convert bitcoin at that specific platform.
In a literal term, we don't need to pay directly since centralized exchanges where we doing are transactions especially converting bitcoin are facing the taxes. Those taxes that those exchanges is dealing will now be one of the reasons why they have such fees on some of their services.
In a literal term, we don't need to pay directly since centralized exchanges where we doing are transactions especially converting bitcoin are facing the taxes. Those taxes that those exchanges is dealing will now be one of the reasons why they have such fees on some of their services.
September 28, 2017, 03:54:44 PM
Usually that depends on country because I don't have to pay taxes on trading, currently situation is like that but if I receive 100K monthly, then of course no one cares what I do, I have to pay taxes but on small amount of money, no one cares about that.
But if you have official and registered business, then no one cares about bitcoins and altcoins, you do something = you have to pay for it.
But if you have official and registered business, then no one cares about bitcoins and altcoins, you do something = you have to pay for it.
September 28, 2017, 03:27:29 PM
Not in random exchanges, international platforms don't care about such issues, if you are that big in trading with millions of dollars then yes otherwise
There are no rules yet for petty earnings, if you are earning money by participating in freelancing jobs there is no law in place for such incomes mate.
People will pay tax when they use government services, public services and when they are earning more than one person in a year, you should never
Report your income records to them.
There are no rules yet for petty earnings, if you are earning money by participating in freelancing jobs there is no law in place for such incomes mate.
People will pay tax when they use government services, public services and when they are earning more than one person in a year, you should never
Report your income records to them.
September 25, 2017, 10:02:38 PM
Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??
Here it is mendatory for us to give tax Because if we will make earnings and will not oay tax then it would not be better for our future for our cryptocurrency field, Because cryptocurrency needed better support by the government , And if the government will not get anything from the cryptocurrency market users then why they will allow us to ude cryptocurrency like things .Here i myself paying tax to the government for the use of bitcoin and altcoins Because i know very well that if government will see that people are making profit and also paying tax for the bitcoin earnings then it is better to give the free rights to use such things because in both sides the growth of the country is going on , that is the priority of government in a country .
September 25, 2017, 09:55:33 PM
Any state has the right to establish taxes and fees for its citizens. Therefore, it is necessary first of all to ascertain the income tax from activities with a crypto currency in a particular country and in what sizes. If such a tax is not established, then there is nothing to worry about. If it is set, then it is already a matter for a particular citizen to pay it or not.
September 23, 2017, 05:54:31 AM
In addition to OP's question, I wonder if there's any difference between countries in this regard? The IRS in my country considers crypto as parts of someone savings and thus one could be taxed quite heavily if holding 20BTC but 0 euro/USD. However, funds that are in the 'cryptosphere' are next to impossible to check for the IRS so this generally isn't a real concern.
Since the IRS can't prove beyond reasonable doubt that a certain address belongs to you, it can't tax you for holding.
A law that can't be uphold becomes a dead law. I think it's safe to ignore it. They really must be insane to think people will come running to them every time they get something valuable like a gift or a crypto coin.
I hope they establish those tax free islands soon, before we all get thrown in jail for not reporting our cryptos lol
September 23, 2017, 05:43:20 AM
In addition to OP's question, I wonder if there's any difference between countries in this regard? The IRS in my country considers crypto as parts of someone savings and thus one could be taxed quite heavily if holding 20BTC but 0 euro/USD. However, funds that are in the 'cryptosphere' are next to impossible to check for the IRS so this generally isn't a real concern.
September 23, 2017, 05:00:43 AM
Do we still need to pay income tax if we earn through trading/investing in Bitcoin or Altcoins??
Technically yes, but only when you sell, as it is a capital gain.Jump to: