Topic: Explain the income in bitcoin ? - page 3. (Read 1660 times)
I think to explain it, no need to detail reveal it or to expose it whatever ways you do in earning of incomes from bitcoin. As long as we do not harming to others people and that ways are not really prohibited in the country, to explain it.. I think just simply combine everything in one statement, that is "The Bitcoin Incomes"
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
Yes, I agree it is an income. But you know, each country of jurisdiction has its own rules and regulations as to the declaration of income. So you would have to check on your local/national laws regarding that. I think you would also need to qualify as to whether what you are doing is full-time or that of part-time. Because as for us, if it is only a part-time job, you need not declare anything that you earned out of it.
It was decentralized no need to declared our income in bitcoin and they cannot imposed tax on it as long it was not legal in the government no authority can give the rule from it.
I think it depends on the country, if bitcoin is declared the official currency, then your income should be declared, otherwise I do not think so.
Income declaration from BTC is still not clear in most of the countries, but what I see is that income from campaign or bounties are the reward to your service so it is the active income which you earn which may come under Income generated by delivering services.
And the income which you generate by holding BTC will taxed as per short-term capital gain(if sold within 1 year) or long-term capital gain(if HODL for more than 1 year).
Rest I suggest you to consult a TAX expert, he can guide you better as per your own country tax laws.
And the income which you generate by holding BTC will taxed as per short-term capital gain(if sold within 1 year) or long-term capital gain(if HODL for more than 1 year).
Rest I suggest you to consult a TAX expert, he can guide you better as per your own country tax laws.
In order to avoid paying tax, I use online exchangers. They can be used to send the Fiat on any account without registration. In this case you will not track and you can do any in-store purchase without using your Bank account. It seems to me that bitcoin was conceived in order not to interfere with the government and therefore I consider myself free from tax liabilities.
No one can ask for taxes because of the expense in the store, and bank accounts sometimes have to make a final explanatory statement. It was not my case. But those who transfer Bitcoin in extreme amounts complain too much. 
I haven't seen an online exchange that doesn't require you to verify before allowing you to cash out. Even if such an exchange would exist you're still sending money to a bank account that's in your name. You have to be extremely naive to think that your fiat can't be traced by your government.
I use exchanger which does not require registration. Of course if I send money to my Bank card that I can detect but I do not. I buy everything that I need in the online store. There you can pay by credit card. I send Fiat from your anonymous account once in the store. In this case, I have no way to track.Care to give us some more info? I haven't encountered an exchange that would allow me to sell BTC for fiat without verification. Nowadays it's hard to find one that allows trading crypto pairs without at least a basic verification by phone. That's because of anti money laundering and anti terrorist laws. In Europe and the USA it's a normal thing.
Also, sending things to your home doesn't make the transaction anonymous anymore, even if you use a fake name.
Income can be tax in many ways, if gains from bitcoin it should be capital gains while the cash/fiat you get from trading bitcoin should be declared as income tax, getting bitcoins directly is quite debatable since its value is too volatile. This kind of questions should be directly ask from tax officer from your country I guess.
Your'e right. But in fact (we are working in Eastern Europe) tax service can make little bit differ decision, and here we have practice of income directly from mining forgetting salary in BTC.
Do you have a registered business? If yes then you have to pay taxes on the money you're earning and paying your employees. It's a huge risk to neglect it because as a business you have to write reports and have bills for every payment. You just can't operate without it and the authorities often perform random inspections, so sooner or later they'll come knocking.
If you are a solo miner that's not registered you're safe as long as you don't cash out. You can keep your mined coins as long as you like and be perfectly safe until you move it all to your exchange account because from that moment the coins will become associated with your ID.
In order to avoid paying tax, I use online exchangers. They can be used to send the Fiat on any account without registration. In this case you will not track and you can do any in-store purchase without using your Bank account. It seems to me that bitcoin was conceived in order not to interfere with the government and therefore I consider myself free from tax liabilities.
I haven't seen an online exchange that doesn't require you to verify before allowing you to cash out. Even if such an exchange would exist you're still sending money to a bank account that's in your name. You have to be extremely naive to think that your fiat can't be traced by your government.
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
I will try to put this based on my little understanding of investments and how funds is being earned via several means and at the same time link it to various form of tax within my jurisdiction.
Anything you do to earn money, you're to declare your income because every options you listed there can be likened to social media advertising or say digital advertising which is done on a large scale that some people also establish a company for and they are required to pay their tax on such income derived. However, as an individual, you pay a tax different from what a company would pay. In declaring, you can go the route of either self assessment or wait for government to come after you depending on your country residence.
You have to understand the law of tax of certain countries. Having some btc through different channels like trading, gambling,online marketing etc can be described as online income which we used to say. So getting some btc is not difficult to describe ( if you dont want to keep it secret where it is illegal ) you can call it your internet money.
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
Is depend from your country. For my country not legalized bitcoin yet. For me I earn from job (signature campaign) and easy to declare also.
We can do jobs and earn some bitcoin from there, I think same things like investment. But for investment, we have a risk of it.
I think not all people are declaring income in bitcoin since this is not subject to tax i think no need to disclosed how much did you earn in bitcoin annually, but it is correct if in your country was bitcoin was already legalized and government already have law about bitcoin i think you should declare it and where your bitcoin came from. Signature campaign, bounty campaign, translation and trading that is the most earning method did by people who do not want to risk more.
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
This depends on the laws on respective countries when it comes to taxable incomes and it will also depend on the scope of each government agency. My colleague interviewed the lawyer at our BSP (Central Bank) and asked if whether bitcoin is legal and taxable. They said that here in the Philippines, they see bitcoin as property, thus it is not subject to legal tender. Also, mining bitcoin falls under the category of 'other income' making it taxable. Since I do know anyone here who mines bitcoin, I really cannot answer if how they declare it under their income tax return. Bitcoin profits are an isolated case where it varies depending on the situation given.
Your'e right. But in fact (we are working in Eastern Europe) tax service can make little bit differ decision, and here we have practice of income directly from mining forgetting salary in BTC.
Do you have a registered business? If yes then you have to pay taxes on the money you're earning and paying your employees. It's a huge risk to neglect it because as a business you have to write reports and have bills for every payment. You just can't operate without it and the authorities often perform random inspections, so sooner or later they'll come knocking.
If you are a solo miner that's not registered you're safe as long as you don't cash out. You can keep your mined coins as long as you like and be perfectly safe until you move it all to your exchange account because from that moment the coins will become associated with your ID.
In order to avoid paying tax, I use online exchangers. They can be used to send the Fiat on any account without registration. In this case you will not track and you can do any in-store purchase without using your Bank account. It seems to me that bitcoin was conceived in order not to interfere with the government and therefore I consider myself free from tax liabilities.
I haven't seen an online exchange that doesn't require you to verify before allowing you to cash out. Even if such an exchange would exist you're still sending money to a bank account that's in your name. You have to be extremely naive to think that your fiat can't be traced by your government.
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
I consider my bitcoin income as actual income only when I exchange it to fiat. So I may have 1 bitcoin in my wallet and I cashed out 0.3 bitcoin to my bank account. So I will consider that 0.3 bitcoin equivalent of cash as my income and I will report it to my tax information sheet. I won't report my entire holding of 1 bitcoin because it is not actually received and infused in to economy.
So it doesn't matter how many bitcoins you earn from various sources like bounty, moderation, referral income etc. unless and until you cash it out, it can't be considered as your income as per the tax law in majority of the countries. I follow the same thing.
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
It's up to you on how you'll declare it, if your taxing ministry is obligating you to pay taxes since it is a must and you are earning so your conscience will be dictating you of doing so.
You can just declare that you are a freelancer since most of the online jobs are treated and called that way.
It doesn't matter if it is in bitcoin as long it has value and you are converting it to your local currency.
The thing is i don't convert it in local currency ! So should i declare something in bitcoin ? It seems a bit silly to declare something you did not cash out even if it's a regulary income when you know 5000 dollars can become 1000 dollars quickly until you cash it out.
If you don't convert it in local currency then I think you don't need to pay any tax because there is no income to declare yet. If your country do not have any applicable laws yet regarding bitcoin income then you don't need to pay any tax. Your country may have particular laws regarding fiat currency so it will only be applicable in fiat in which case you will not pay any tax if the bitcoin income you earn is not in fiat yet.
Okay good, this is what i wanted to know, because i invest this money and don't want to cash it out yet.
But i wonder when it comes to cashing out, how it works, because we have to explain in details how we got this money, to prove it's not money laundering, but how to explain income from bounties for example ? It will be quite hard to justify, they will have to call every project
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
I consider my bitcoin income as actual income only when I exchange it to fiat. So I may have 1 bitcoin in my wallet and I cashed out 0.3 bitcoin to my bank account. So I will consider that 0.3 bitcoin equivalent of cash as my income and I will report it to my tax information sheet. I won't report my entire holding of 1 bitcoin because it is not actually received and infused in to economy.
So it doesn't matter how many bitcoins you earn from various sources like bounty, moderation, referral income etc. unless and until you cash it out, it can't be considered as your income as per the tax law in majority of the countries. I follow the same thing.
Your'e right. But in fact (we are working in Eastern Europe) tax service can make little bit differ decision, and here we have practice of income directly from mining forgetting salary in BTC.
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
I consider my bitcoin income as actual income only when I exchange it to fiat. So I may have 1 bitcoin in my wallet and I cashed out 0.3 bitcoin to my bank account. So I will consider that 0.3 bitcoin equivalent of cash as my income and I will report it to my tax information sheet. I won't report my entire holding of 1 bitcoin because it is not actually received and infused in to economy.
So it doesn't matter how many bitcoins you earn from various sources like bounty, moderation, referral income etc. unless and until you cash it out, it can't be considered as your income as per the tax law in majority of the countries. I follow the same thing.
This is a legal issue no one has been able to answer me about
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
If you win bitcoin with investment, it's easy to declare
What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?
Until ou convert it to your fiat currency then you don't need to worry about it. Once you converted it to fiat that is the only time that you can consider it as an income and that is the time that you can declare it. Unless your government already accepted crypto currency and they have regulations for it.
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