Topic: Explain the income in bitcoin ? - page 4. (Read 1660 times)
For me the most profitable would be mining, that is if you got the right tech in your place. It is what i am earning for right now, as the price is now increasing. It might be late but at least it is a start. Participating in services bounties and tokens for me, is just a minor earning but at least it is a good start for people who really doesnt have enough money fot mining.
Before getting into depth one must understand that most of the world's Tax laws consider income as taxable when it is received by you. Now this line could have two perspectives. Received could mean when you have received your bitcoins in wallet or cashed out your bitcoins and received it in bank. If you use a private key wallet there is absolutely no way your govt. can know when have you received your bitcoins. If you use an exchange then you are not anonymous as most of exchanges do KYC. Now the tax on this income from jobs can be split into two parts. First is the tax on the amount of bitcoins at their corresponding value that day when you received them, this would be income from either business or other incomes. And the tax on the amount you have earned due to increase in price of bitcoin this can be treated as a capital gain. So these two would be taxed in this manner if you are using an exchange. For private key wallet just cash out your bitcoin at end of fiscal year and pay taxes on it as income from business or other sources.
You clarified this issue well enough. The difference between the value at the time when the Bitcoin is received and when it is converted to fiat money is the capital gains and one has to pay capital gain tax for that. The other tax is, of course, the tax on the income received meaning the whole Bitcoin upon receiving it. I agree that in countries like USA it would be good to declare everything and I think there is already easy-to-understand guide available online for anyone declaring and paying the appropriate tax on this. One thing is sure the government is very much enthusiastic in collecting taxes and in imposing penalties once they are aware that one is not declaring all transactions correctly BUT they are reluctant in supporting the cryptocurrency movement unlike Japan, South Korea, Taiwan and Australia. This is a one-sided kind of a situation which we hope can be corrected soon when Bitcoin is already a well-accepted and legitimized currency. If the government is very much happy promoting the legalized marijuana industry, I don't see the rational why it should not be in the forefront promoting the adoption of cryptocurrency when it can anyway imposed strict regulations if they want.
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.
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.
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.
It's depend on their government whenever they have legalize and apply tax or not.
Meanwhile my government still not legalize yet so no one forcing me to explain bitcoin as my income. They just forbid bitcoin as main transaction because bitcoin can be use for criminal things
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.
It's depend on their government whenever they have legalize and apply tax or not.
Meanwhile my government still not legalize yet so no one forcing me to explain bitcoin as my income. They just forbid bitcoin as main transaction because bitcoin can be use for criminal things
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.
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.
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?
I think its just the same since you did still able to get those coins or bitcoin earnings from a job which you can still declare and I cant see that there would be a problem on that. Want to know if your government is already requiring you to have such declarations? That's too strict though. For now in my state here in my country I don't have much problem regarding on that even though it is already involving huge money but yet taxation on bitcoin earnings isn't still being imposed. 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?
Before getting into depth one must understand that most of the world's Tax laws consider income as taxable when it is received by you. Now this line could have two perspectives. Received could mean when you have received your bitcoins in wallet or cashed out your bitcoins and received it in bank. If you use a private key wallet there is absolutely no way your govt. can know when have you received your bitcoins. If you use an exchange then you are not anonymous as most of exchanges do KYC.
Now the tax on this income from jobs can be split into two parts. First is the tax on the amount of bitcoins at their corresponding value that day when you received them, this would be income from either business or other incomes. And the tax on the amount you have earned due to increase in price of bitcoin this can be treated as a capital gain. So these two would be taxed in this manner if you are using an exchange.
For private key wallet just cash out your bitcoin at end of fiscal year and pay taxes on it as income from business or other sources.
Now the tax on this income from jobs can be split into two parts. First is the tax on the amount of bitcoins at their corresponding value that day when you received them, this would be income from either business or other incomes. And the tax on the amount you have earned due to increase in price of bitcoin this can be treated as a capital gain. So these two would be taxed in this manner if you are using an exchange.
For private key wallet just cash out your bitcoin at end of fiscal year and pay taxes on it as income from business or other sources.
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?
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