How do the taxes work on transactions?

VPietro

newbie

Activity: 8

Merit: 0

Quote from: LeGaulois on December 17, 2017, 08:16:25 AM

You are confusing transactions fees, trading fees, and taxes

When you trade you pay the trading fees (to the website), no matter if you trade dollar for bitcoin or bitcoin for altcoins. When you withdraw your coins from an exchange or your wallet you pay the transactions fees (for miners)

You pay the taxes on the profits you make, buying at $1,000 and sell at $5,000 you pay based on the $4,000 profit (5000-1000)
The laws may vary from country to country so it's better you ask to someone in your country or to taxes office

That was very enlightening, thank you.

LeGaulois

copper member

Activity: 2940

Merit: 4101

Top Crypto Casino

You are confusing transactions fees, trading fees, and taxes

When you trade you pay the trading fees (to the website), no matter if you trade dollar for bitcoin or bitcoin for altcoins. When you withdraw your coins from an exchange or your wallet you pay the transactions fees (for miners)

You pay the taxes on the profits you make, buying at $1,000 and sell at $5,000 you pay based on the $4,000 profit (5000-1000)
The laws may vary from country to country so it's better you ask to someone in your country or to taxes office

Jerusareth

jr. member

Activity: 73

Merit: 1

I think you are not paying taxes when making a transaction in sending or converting Bitcoin to Altcoins and vice versa, it's the fees of the exchange that you are using. Exchanges are the one who are paying taxes to operate to their local country if they are licensed. You can all read the information regarding fees in exchanges that your'e using in their own website though so don't be too lazy to do so.

VPietro

newbie

Activity: 8

Merit: 0

Hello everyone, I am having trouble trying to understand which fees I'd have to pay on BTC or other altcoins transactions.

I know that, depending on which exchange you are using, you pay some order taxes, and some deposit/withdraw taxes. What about BTC to other altcoins? Are there transactions fees? And what about changing my BTC to another wallet? Do I pay fees too? And wallet-change transactions of other altcoins?

TLDR: just tell me all you know about fees and taxes involving crypto transactions, please. Thank you!

Topic: How do the taxes work on transactions? (Read 113 times)