Topic: How do I avoid tax on crypto - page 5. (Read 18699 times)

I agree, but wasn't there a tax added to a transaction when you are transacting in a country with bitcoin is legalized?

First of all in my country bitcoin is still illegal so I don't pay Tex on my profit on bitcoin.

Last month the IRS issued a serious warning through a press release to anyone that does not pay taxes on their cryptocurrency profits. The statement says that “taxpayers could be subject to criminal prosecution…Anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000.”

Unfortunately, few people understand how to account for cryptocurrency gains on their tax returns.

Why not just comply with the regulations of our country, we are always looking for a best result from our government but we are doing everything just for us to avoid tax, is it fair? I don't think that it would be a good idea too, we should also comply with our obligation for us to have the right to complain when our government are not doing their job too.

Sometimes it is currency, and sometimes it is not. But avoiding taxes is a question not related to Bitcoin itself, rather than one made profit from trading. Hire a finance guru for that

I think if in your country, there are any tax for crypto, you don't have to avoid the tax but you need to pay the tax because this means you are still supporting your country so you can help your country. besides that, you can avoid breaking any law or regulations that need to pay any tax for the citizen of that country. and I think the tax is not too expensive if you compare with your income from the crypto so you could still enjoy your profit and you have your money from crypto.

not the time we chose not to pay taxes  ... now taxes on everything, even what you bought for your money, you have to pay the state, although it did not help you at all.  such a policy.  and the same with the crypto currency, someday we will be charged for each transaction with which the interest on the exchanges is already taken ...

Minimizing your tax liability through careful planning is always a good idea. Evading taxes, however, it's not.
Failing to pay the required taxes on your Cryptocurrency investments will land you in real hot water with the IRS or any other tax organization.
For peace of mind reach out to cryptocurrency account at HappyTax. They are specially-trained to help you with your tax exposure

I feel bad for the people who think that not paying taxes is an option. They are going to turn the investment of a lifetime into a jail sentence. It is foolishness.

It depends on how your country's law tax your profits. In some countries, I've read that long term trading or holding will tax you much more so you just need to adjust to that and only do short-term trading to reduce it.

After the newly written U.S. tax laws recently passed, cryptocurrency investors realized the tax-free exemption filing 1031 for IRS reporting is no longer applicable to their digital asset investments. The law also implies that a lot of people will have to pay taxes on every single transaction they processed.

If you try to avoid paying taxes to the governments then it will be considered as illegal action so it will be better to pay the necessary taxes.BUt if you are using crypto currency as crypto currency then you no need to pay any taxes but if you cashout that crypto the problem will start.

It seems like here our country we much enjoy using cryptocurrencies because our government did not take an action on bitcoin to put a tax on it, the good thing is our government recognized bitcoin as a part of a currency where able to have transaction online.
I think the tax that we paid is in the wallet company that we have, through conversion bitcoin to cash we have already deducted by the transaction fee, and then when we cash out our fiat there is transaction fee in remittance to claim our fiat. And that way we could pay tax

If Bitcoin and crypto currency in general is taxable income in your country or region and you are finding ways in which you you not pay tax i see you as an enemy of your government and i will not advise you to do such a thing as is contrary to the law of your country. But if you leave in a country like my country where Bitcoin and crypto currency in general is accepted as a means of exchange for goods and services and the our government didn't adopt it then you need not to pay tax and that is what we enjoy here in my country.

I think tax consultants will not be able to avoid you on the taxes that will be given to you. maybe the accountant can do a good calculation and reduce the amounts taxes that may be given to you. but I think avoiding taxes with crytpo is so easy? you know that crypto is decentralized and anonymous. you can hide your income very easily right ?

Why on earth will you think of such a thing that if Bitcoin and altcoins are accepted as a means of exchange for goods and services and equally accepted as taxable income by your government.

Don't make any money. The best way to avoid taxes is to live dirt poor your entire life. You'll be liv'n the dream in your cardboard box under the highway bridge. No government tyranny now! Just the freedom of all the garbage you can eat.

Luckily my government still not apply tax on bitcoin because bitcoin against our law.
I can use bitcoin without pay any tax but I must bear own risk.
For me, applying tax is worth because it can also generate country's income for their own good !

If you want to avoid paying taxes on crypto, then there are both legal and illegal methods to do that. If you want to go the legal way, then I'd ask you to hire a good tax consultant. If you want to take the illegal way, then you can do that through pre-paid debit cards or cash on mail.

If You guys live on a democracy... then can select your governants.
Why allow them to add taxes to any income you have?
Do you think govs really do superb good things with the money they collect from your "donations"? Thats up to you.

Purchase Cryptocurrency With a Retirement Account
A lot of people understand that retirement accounts are like IRAs and 401Ks or ROTH investment options. They give tax breaks that help people save money for retirement reasons. And, many cryptocurrency investors also think they can avoid paying taxes because their digital currencies are making money through accounts set up for retirement. But this is a process that is not as easy as one may think.

When an American citizen or resident wants to by cryptocurrencies through an IRA, they need to first transfer funds off shore. They also need to setup an LLC that operates in a country with zero taxes. The company that is offshore will need to then open and bank account offshore that works with a digital currency and wallet to complete the transactions on the behalf of the individual.

It sounds complicated and that is because it is, you need to have help from an attorney in the United States and a foreign counterpart in the country that you’ve chose for hosting your IRA. There a lot of legal fees as well that will start to build up fast. And without understanding the way that transactions work internationally, there’s a chance it will not work out. If the person hired to set up the IRA chooses to bail out and run, you can’t really do much about it.

The complex nature of the situation and potential for fraud are only the first of the many problems you’ll have to face. You’ll also have to learn how to take care of and handle your own investment. The IRS will not allow you to borrow money from the account or make a profit from it in any way. It’s just like any other personal investment company would work.

Also, the total contributions that happen on a yearly basis can never exceed $5,500 if you’re less then 50 years old. After that, they cap at $6,500 and that is only the beginning. Even if you make it through the challenges and red tape, there is still a strong chance that you’ll have to pay taxes on any capital gains made.