Topic: How do I avoid tax on crypto - page 9. (Read 18699 times)

I find it hard to see through your post to see if you're being sarcastic or not, especially with that emote. There's nothing good or bad in paying taxes. I mean a law abiding person could be considered as good only if the law established by our governments was good. But is it? Is the tax law good? Is it just? Those are the questions each of us should answer in their own conscience. I think that I am a good person, but I don't see the law as something good. More like the necessary evil.

Please, be rational and change your thinking faculty about tax payment. Be of good sample to the world that Bitcoiners are law abiding. Primarily, our system at the face of it seems avoiding payment of taxes, since we are the sole controller of our encrypted wallets, left alone mild ones being charged at exchanges. But with deep sense of humour, you shall pay tax/tariff on goods and services purchased with money gained from Bitcoin. . hahaha.. Is this not sensible enough? So, you can not shun tax payment wholesomely in Crypto and try not to be A tax evader, if you are but a good Bitcoiner with respectable dignity.

When there is law in your country requiring you to pay tax in every bitcoin transaction then you must follow it and be a law abiding citizen. Authorities especially in US has a technology that can track and report bitcoin transactions. Bitcoin is said to have a permanent searchable record of transactions that can be use by the tax authorities to track someone who avoid paying his/her taxes.

Isn't that exactly what they are doing? To connect to a water pipe I have to pay. I have to buy a water meter myself and pay for it's legalization. I have to pay for maintenance of the pipes even if I'm not using any water, and of course I have to pay for the water that I actually use. On top of that the local water and sewage plants are built and maintained mostly from local taxes. The taxes I as a landowner pay anyway. The taxes from your income will never be turned into the things you need. They are going to finance the military, maintain government buildings, bail out banks and social care services that are always losing money...


I'd gladly pay for the services that benefit us all like the police, fire, healthcare. These could be easily maintained through a head tax. A certain sum equal for every citizen that would support the most basic and important institutions in the country. One tax instead of the numerous ones we're paying right now.
Also, income tax is unjust. It benefits the lazy ones as the more you work the more you have to pay.


If you like being treated like a slave, so be it.

It is easy to avoid tax on cryptocurrencies, don't declare your income, don't tell anybody that you are earning from it, make some tips to other people but after avoiding it when it is required by your government then be ready as well for the consequence it will have, you may not be imprisoned but your name is already blacklisted in the tax gov and it will be hard for you to get tax clearance as one of the requirements for loan.

maybe the tax you're pointing at is either the miner's fee or the processing fee when you make a withdrawal in your local bank like service charge of the bank. There is no way to avoid both of these, because they're the foundation to the succession of your transaction in the blockchain. It is better to pay instead of evading it and we should all feel lucky for now that government isn't charging us a tax yet in cryptos. If they put a tax on it soon, just pay for it because it can end in a wrong end

If in your country there is no a special law for taxation of crypto profit then you have nothing to worry about. In the case if such law on the last stage of acceptance I thin you need to move your crypto earnings to another country where there is no crypto regulation laws yet. Just I do not know exactly how to do that, I am in the mood to pay the necessary percent to the government if such earnings will be count as self take business.

So you think others should pay your bills? How do think the roads get repaired? You  leaching off people. If you think you have a better idea about how to run a society then please tell. But make no mistake, you are not being a hero, you are being a deadbeat who would rather stick his neighbors with his share of the bill.

It all depends on what country you live in and how you set up your tax affairs in general, remember tax avoidance is legal, tax evasion is illegal. So plan carefully and seek professional advice.

Thanks for your reply.

I would like to say I'm not fully against taxes, I'm not at anarcho-capitalist side, as we need a government managing the basics we need in a society to keep it organized and to guarantee the order. The infrastructure and security sectors are very important and necessary*, I agree paying taxes (as we already pay in our countries) destinated to these areas. But one of the main problems is that we don't even know for what we are paying taxes.

We don't know if determined tax is going to welfare programs, if it's going to sustain the artistic's class (some kind of monetary incentive from the government for 'cultural projects'), if it's going to politic's and lackey's pockets, if it's going to finance foreigner dictatorships, if it's going to education, health, security, etc...

So I'm not paying for a service that I use, I'm just financing political campaigns via taxes (as they buy votes this way, via welfare programs and theft). Also, there are several bureaucratic public jobs and services that are totally worthless, they shouldn't even exist.

And then, even taking so much money from citizens via several different taxes and abusive tax burden, why do they need Crypto-Currency profits? Isn't the country already 'working' fine without this Crypto income? Let the Crypto investors boost the local economy by investing on it by themselves, by opening businesses, by increasing their purchasing power, by learning how to live and spend their money by themselves without the state machine telling them what to do, how to do.

Sometimes, depending who is on the government, yes, it's our enemy, and if their rules are unfair they shouldn't be followed. Maybe in evolded countries things work better, but it's not everyone's reality, the taxation abuse is heavy in many places. The balance must be respected to keep the harmony flowing through the men's hearts.

* The quality of these services are also very low. Broken roads and low work's conditions for security forces.

I think you should pay the required taxes to the authorities or else it might create a problem for you in the future. If there is no tax provision at the moment for cryptos in your country, then still be ready to pay the tax as the authorities can reach to you at anytime in the future. If government authorities caught you then you might have to pay heavy penalties for tax evasion. I would suggest you to check the local law related the cryptocurrencies in your country, be a responsible citizen and follow the same.

Your point is valid. If you make money, pay tax to the government and if you loose, the loss is yours. This is the basic taxation framework for almost every countries and pretty much one-sided. So then why are you asking your government to build roads or sanitation system or other infrastructural development? Government is building such facilities for common people like you and I to use for free of cost. Isn't it an one-sided facility for us? Instead, they can build roads and sanitation system and ask money everytime you use those facilities.

Take an example of the Police force that government has built for you and I. So if a burglary happens in your house and you call the police to investigate. Imagine that police is asking for service fees from you to investigate and giving you receipt for the same. Will you be paying that? You expect that police will register your complaint and investigate the matter for you without charging any fees. So that's an never ending debate and every party has their own flaws in the system. Because nothing can be flawless in the world. I am sure a lot of government are corrupted and chargind unjust to their citizens, but we all have to live within a framework and a system. If you are out of the system, you are an outlaw. 

I support paying taxes to the government. For investments of any sort, there is a provision called "capital gain taxes". Where your net gain is taken under consideration after deducting all your losses. Let me give you an hypothetical example on it,

1st January 2018: Bought 1 bitcoin at $10,000/btc
3rd March 2018: Sold 0.5 bitcoin at $9,500/btc
5th June 2018: Sold 0.5 bitcoin at $12,500/btc

So in this trade, you first sold a percentage of your bitcoin holding at loss and you made profit in the 2nd time. Look below to know how to calculate the capital gains here,

1st January 2018: Bought 1 bitcoin at $10,000/btc
3rd March 2018: Sold 0.5 bitcoin at $9,500/btc (received $4,750)
5th June 2018: Sold 0.5 bitcoin at $12,500/btc (received $6,250)

So total amount received is, ($4,750 + $6,250) = $11,000
Initial investment: $10,000
Net gain: $1,000

So you capital gain will be $1,000 and you have to pay taxes on it. There are other conditions like the time of holdings etc, but that depends on your local law, so I won't discuss about those. But that's a basic idea of how the capital gain tax works and how you calculate your capital gains. So you are only paying taxes on your net gain. If you are making losses, that loss will be deducted from your profits. Government is not our enemy, we just need to follow certain rules. I hope this reply will help to clear your mind.

Bitcoin is taxable but when the government make it legal in our country want or not we need to pay tax over our income in crypto.We cannot avoid it once it was implement ,following our rules and make it clear to us that we do not  need to avoid that .Its such a crimial.action once you avoid that.

What you say it's true. I think it's very interesting that when investing, we must take the risk by ourselves, no one is behind us, if we buy some BTCs or AltCoins and tomorrow their prices fall and we lose all our money, it's all over... But if we make profit, then we must share a piece of it with the government. Total advantage for only one side, right?  

Why isn't the government solidary in case of loss too?

And even in Crypto world, there are enthusiasts that feel offended if you put yourself against taxation.

Last time I checked being against taxes wasn't a crime. It's my opinion that the system is flawed and taxes are nothing but an abuse of power. I'd like to see them put me in jail for being against the slavery they were so much against in their official statements, yet we're all living in a world of modern slavery.

Pay your taxes, social security, even if it means you won't be able to put food on your table. If not we'll put you in jail and supply the food clothes and clean sheets for you at the expense of other taxpayers (slaves). What kind of a system is this?

Taxation is everywhere which it will normally be asked by any government but the thing here is that on how they do gonna handle it if it would be following the right process or not.Abuse of this opportunity because of their power is common which they really the advantage on making money out of those tax this is why decentralization makes a buzz as of now where people do see the chance on changing something when it comes to tax.

Government has enslaved people to continually work for them.The elites who
hijack political powers with their influence are the ones imposing these taxes.
This is the major reason decentralized block-chain technology came into fore
to eliminate the injustice of banks,government laws and restrictions observed
globally.If the tax is fair, well and good.But if very heavy and unfair, i simply
relocate to elsewhere for a better deal.

I don't know why do people bother themselves on thinking that cryptocurrencies is the best way to avoid taxes.Just like being said this is not being created for solely on avoiding taxes but somehow it do have the features which you can actually do this thing but for a sensible citizen of a certain place you would really need to pay taxes.If you would really avoid and then suddenly being caught by them then fore sure you would end up behind bars.

Please, no one in the US listen to this person. This is a blatant falsehood. People who mine cryptos realize a taxable event the moment a coin is mined (due to accounting difficulties, it is likely administratively acceptable to do this every 1 coin as opposed to for every miniscule block reward split among members in a pool). Even if the coin is not sold for fiat, IT IS TAXABLE.

Furthermore, exchanging the coin for something else of value (in whole or in part) is going to create a taxable event where you must calculate your basis and recognize the appropriate amount of gain at the time of the transaction, if this gain is on a capital asset and has been held for more than a year (such as Bitcoins held for personal investment by an individual), it will be entitled to favorable capital gains treatment. If, however, the coins are held in a pool by a partnership (LLCs included unless they make the check-the-box election) or S-Corp, the taxes must be paid on gain as of the last day of the partnership's taxable year. This is true EVEN IF the coins ARE NOT SOLD FOR FIAT OR OTHERWISE EXCHANGED FOR ANYTHING.

To the person I quoted, please don't give people bad advice. It's okay to say you don't know or you're not sure if you're right. But don't claim to be an expert on things you know nothing about because people might trust you, make a bad tax decision, and then blame cryptos on the whole for their problems. 

It does not happen. Even in the US you have to pay tax only after the exchange the bitcoin for Fiat. In order not to pay taxes it is enough that you are not using exchange. Perhaps in the future it will be possible to buy and sell goods with bitcoins. This saves us from having to pay taxes. To ban such deals will be difficult. Therefore, the government will be forced to accept the bitcoin currency.