Topic: How Do You Even Pay Taxes on Crypto? (Read 200 times)
Currently, I'm not paying tax for my crypto earning because there is still no tax bill here in our country that is applicable to cryptocurrency but after our main bank state their stand in cryptocurrency investment I guess soon they would passed a bill in order to put taxes on said earnings. If that happen the problem would be how would it treated on financial reports since our transaction our anonymous, task avoidance would surely be easy.
I'm okay if I have to pay tax on bitcoin, I think it's fair between bitcoin users and government. but on one condition, the government really has to protect the bitcoin users, for example if there is a case of losing bitcoin in their wallet (stolen), the government should be responsible for the case.
What do you do to pay your cryptotaxes? What happens if you don't pay?
Are any of you planning on paying taxes on your alts and btc this season?
Are any of you planning on paying taxes on your alts and btc this season?
You convert your income and capital gains denominated in crypto to the fiat equivalent. You then pay taxes with fiat, the same way that you pay taxes on all other income.
If you do not pay, you are guilty of tax evasion. Depending on your jurisdiction, you could face a big penalty and / or jail time. Is it really worth the risk?
I am actually hosting a Ask Me Anything on taxes and cryptocurrency and have answered a lot of these questions. Check it out or ask questions here:
https://cryptoama.amafeed.com/i-provide-strategic-tax-and-accounting-solutions-for-cryptocurrency-traders-and-479288
https://cryptoama.amafeed.com/i-provide-strategic-tax-and-accounting-solutions-for-cryptocurrency-traders-and-479288
It depends on what you do. I am purely a hodler, where I just have to add the total value of my Bitcoin holdings on top of my regular wealth, and over this combined wealth I have to pay 2-5% per year, depending on the amount.
In case of a lower overall wealth, you'll fit in the close to 2% rate category, and from there the more wealth you have, the more you'll end up paying where 5% is the max. That's just the tax you have to pay over your wealth.
If you made profit by buying selling, you'll need to pay tax over this specific transaction as well, where in this case there are several categories as well, but at most you'll be paying up to 30% tax over your profits.
The thing is that Bitcoin or crypto doesn't need to be explicitly mentioned in order to pay tax. I see a lot people think that just because it doesn't get mentioned, that crypto isn't subject to tax, which is obviously wrong.
In case of a lower overall wealth, you'll fit in the close to 2% rate category, and from there the more wealth you have, the more you'll end up paying where 5% is the max. That's just the tax you have to pay over your wealth.
If you made profit by buying selling, you'll need to pay tax over this specific transaction as well, where in this case there are several categories as well, but at most you'll be paying up to 30% tax over your profits.
The thing is that Bitcoin or crypto doesn't need to be explicitly mentioned in order to pay tax. I see a lot people think that just because it doesn't get mentioned, that crypto isn't subject to tax, which is obviously wrong.
What do you do to pay your cryptotaxes? What happens if you don't pay?
Are any of you planning on paying taxes on your alts and btc this season?
Are any of you planning on paying taxes on your alts and btc this season?
The tax matter entirely depends on your local law. However, due to the instantaneous fluctuations of the crypto prices, it is really hard to calculate your holdings and report accordingly. So unless specified, you shouldn't consider reporting your crypto holding valuation.
Instead, I report the amount I cash out from crypto to fiat. Ibhave a day job, so whatever I earn from the salary, comes under the component "income from salary".
Then I calculate the amount that I have cashed out during the last financial year and report that entire amount under "income from other sources". So my tax is calculated on the sum of both "income from salary" and "income from other sources". That's how I have been managing my tax since last two years because my government hasn't yet specified any framework for crypto taxing.
I believe it will depend the country.
What someone theoretically shoud do where I live is to declare the amount of BTCs held on the government's site as "another goods".
You declare the number of coins you have, using the price you bought the coins. For amounts higher than +/- $10.600, it's required to pay 15% fee over the profit made. The profit's proof is the virtual transaction statements you must show.
If your money is on the virtual world only and you earned it on the virtual world, there isn't any issue, you won't have problems with the law, but when you start transacting money from real to virtual world and vice versa, especially in big amounts, the problem starts. Local authorities will want to know details about it, consequently, asking for fees... If you don't pay, they will probably send you a subpoena, resulting in fine payment or who knows... Jail?
What someone theoretically shoud do where I live is to declare the amount of BTCs held on the government's site as "another goods".
You declare the number of coins you have, using the price you bought the coins. For amounts higher than +/- $10.600, it's required to pay 15% fee over the profit made. The profit's proof is the virtual transaction statements you must show.
If your money is on the virtual world only and you earned it on the virtual world, there isn't any issue, you won't have problems with the law, but when you start transacting money from real to virtual world and vice versa, especially in big amounts, the problem starts. Local authorities will want to know details about it, consequently, asking for fees... If you don't pay, they will probably send you a subpoena, resulting in fine payment or who knows... Jail?
What do you do to pay your cryptotaxes? What happens if you don't pay?
Are any of you planning on paying taxes on your alts and btc this season?
So if you have income for bitcoin, do you have to pay taxes? Are any of you planning on paying taxes on your alts and btc this season?
What do you do to pay your cryptotaxes? What happens if you don't pay?
Are any of you planning on paying taxes on your alts and btc this season?
Theres still no such implementation on taxation directly with bitcoin or into altcoin which means we are just being taxed if we do convert those coins into local fiats which this thing would be entirely depending on which country you do live on. Knowing that there are different restrictions or basis of transactions on each particular country but if you are just holding your coins then taxation isnt applicable on this. Are any of you planning on paying taxes on your alts and btc this season?
What do you do to pay your cryptotaxes? What happens if you don't pay?
Are any of you planning on paying taxes on your alts and btc this season?
Are any of you planning on paying taxes on your alts and btc this season?
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