I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
As far as i know, there were no taxed implemented in trading bitcoin. Or maybe it depends on the country you are residing at.
Topic: How is Bitcoin taxed?? (Read 456 times)
As far as i know, there were no taxed implemented in trading bitcoin. Or maybe it depends on the country you are residing at.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
It is really hard to tax on the bitcoin transactions and based on the trade transactions. The tax will be imposed only when you exchange it for your local currency. Then only it can be considered as income. Otherwise, bitcoin will not allow you to spend it for a tangible things. Only when you exchange the money in to your local currency, it will allow you to spend and then only it can be considered as income. The tax can be imposed on that amount.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
As per tax is concerned i don't think that the bitcoin is a currency on which tax is applicable. Unless someone converts the bitcoin into the real money the money is tax free. You need to understand that if the trading is between bitcoins then there is no way you could be charged tax instead you have to pay fees so that the transaction is being processed successfully and smoothly. I think this would help you to know the difference.So far there is no tax on bitcoin but we are paying the exchanges through the fees and I believe all those who are registered exchanges are paying taxes of course from the profit they get on every trade. As of now South Korea are trying to impose an almost 20% tax on every registered exchanges and I think many countries will also do this.
I think too would agree with taxing bitcoin if you would trade it to your own currency. Because it would make a economic lose if every corpoation in a country would make bitcoin as a transaction. Surely not common users are into in bitcoin. Rather than banning it, better make legal laws on how to manipulate bitcoin for advantage than seeing it as an illegal investment.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
As per tax is concerned i don't think that the bitcoin is a currency on which tax is applicable. Unless someone converts the bitcoin into the real money the money is tax free. You need to understand that if the trading is between bitcoins then there is no way you could be charged tax instead you have to pay fees so that the transaction is being processed successfully and smoothly. I think this would help you to know the difference.So far there is no tax on bitcoin but we are paying the exchanges through the fees and I believe all those who are registered exchanges are paying taxes of course from the profit they get on every trade. As of now South Korea are trying to impose an almost 20% tax on every registered exchanges and I think many countries will also do this.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
I dont think and I dont feel like governement is now applying tax in my country, its may be because its not yet recognize as legal in my country. Though its not legal its not illegal, its now staring to have a recognition from our central bank and this would be the beginning of regulating bitcoin inside our country. The central bank now is trying to get the full information of the people holding bitcoin. This only means that they are working on it already.
Basically, though there is no tax implemented we are still paying certain amount from the fiat exchanges or money exchanger. This actually a form of tax already because the transaction fee is high.
Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies.(can be taxed in USD)
It s depends where you living. I'm lucky i'm living in france and taxes are between 32/100 and ...62/10 !! You should send email at your gouvernement to be sure.
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It's still blurry, there are no real laws about this, we will have to wait the regulations of 2018 to know this, for the better or the worse
it is true in my country also there is no absolute regulation about this industry. which is expected in my future crypto currency can be received either by the government
It's still blurry, there are no real laws about this, we will have to wait the regulations of 2018 to know this, for the better or the worse
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
As per tax is concerned i don't think that the bitcoin is a currency on which tax is applicable. Unless someone converts the bitcoin into the real money the money is tax free. You need to understand that if the trading is between bitcoins then there is no way you could be charged tax instead you have to pay fees so that the transaction is being processed successfully and smoothly. I think this would help you to know the difference.In the UK you should pay capital gains tax like with anything else since bitcoin and other cryptocurrencies are regarded as capital assets.
So when you sell your cryptocurrency you should pay tax on the actual capital gain.
The actual % varies according to your tax bracket since the tax system in the UK is progressive.
Example from the HMRC website:
"You bought a painting for £5,000 and sold it later for £25,000. This means you made a gain of £20,000 (£25,000 minus £5,000)."
If you swap in BTC for painting you know you need to pay tax on the £20K.
Identify your tax bracket and you know what you owe the government.
Conversely, you can get tax relieved if you've made a loss on your bitcoin; two-way street.
So when you sell your cryptocurrency you should pay tax on the actual capital gain.
The actual % varies according to your tax bracket since the tax system in the UK is progressive.
Example from the HMRC website:
"You bought a painting for £5,000 and sold it later for £25,000. This means you made a gain of £20,000 (£25,000 minus £5,000)."
If you swap in BTC for painting you know you need to pay tax on the £20K.
Identify your tax bracket and you know what you owe the government.
Conversely, you can get tax relieved if you've made a loss on your bitcoin; two-way street.
Yes I agree with you, we can do this ways, if we sell cryptocurrency should pay tax. Tax is very important for every country.
So that country can grow if people pay tax and economies from that country will be better. Anyway every transactions with bitcoin can do include tax.
right sir. so the state has tax revenue from the sale of cryptocurrency and the funds can be used for the progress of every citizen through example of development aspects
In the UK you should pay capital gains tax like with anything else since bitcoin and other cryptocurrencies are regarded as capital assets.
So when you sell your cryptocurrency you should pay tax on the actual capital gain.
The actual % varies according to your tax bracket since the tax system in the UK is progressive.
Example from the HMRC website:
"You bought a painting for £5,000 and sold it later for £25,000. This means you made a gain of £20,000 (£25,000 minus £5,000)."
If you swap in BTC for painting you know you need to pay tax on the £20K.
Identify your tax bracket and you know what you owe the government.
Conversely, you can get tax relieved if you've made a loss on your bitcoin; two-way street.
So when you sell your cryptocurrency you should pay tax on the actual capital gain.
The actual % varies according to your tax bracket since the tax system in the UK is progressive.
Example from the HMRC website:
"You bought a painting for £5,000 and sold it later for £25,000. This means you made a gain of £20,000 (£25,000 minus £5,000)."
If you swap in BTC for painting you know you need to pay tax on the £20K.
Identify your tax bracket and you know what you owe the government.
Conversely, you can get tax relieved if you've made a loss on your bitcoin; two-way street.
Yes I agree with you, we can do this ways, if we sell cryptocurrency should pay tax. Tax is very important for every country.
So that country can grow if people pay tax and economies from that country will be better. Anyway every transactions with bitcoin can do include tax.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
As per tax is concerned i don't think that the bitcoin is a currency on which tax is applicable. Unless someone converts the bitcoin into the real money the money is tax free. You need to understand that if the trading is between bitcoins then there is no way you could be charged tax instead you have to pay fees so that the transaction is being processed successfully and smoothly. I think this would help you to know the difference. Many countries still have no taxes for Bitcoin miners.
Many miners don't pay any taxes.
Each country has its laws but to levy taxes on bitcoin, nobody can. For this you need to accept the bitcoin currency. The government will not do it. The legalization of bitcoin could increase competition between cryptocurrencies and Fiat. Who do you think will win in this struggle? Governments can tax only income from the sale of cryptocurrency for Fiat. Many miners don't pay any taxes.
Many countries still have no taxes for Bitcoin miners.
Many miners don't pay any taxes.
Many miners don't pay any taxes.
Yup, it makes you wonder what happens to a trade between two traders from different countries--one taxed, the other, not.
I believe only bitcoin transactions could be taxed by the exchanges if they are legal as per the local government, otherwise no one can tax the bitcoins. However, if you are making profit with the activities related to the bitcoins then you have to pay the tax to the local government. Also note that, there is no tax for holding the bitcoins .
In the UK you should pay capital gains tax like with anything else since bitcoin and other cryptocurrencies are regarded as capital assets.
So when you sell your cryptocurrency you should pay tax on the actual capital gain.
The actual % varies according to your tax bracket since the tax system in the UK is progressive.
Example from the HMRC website:
"You bought a painting for £5,000 and sold it later for £25,000. This means you made a gain of £20,000 (£25,000 minus £5,000)."
If you swap in BTC for painting you know you need to pay tax on the £20K.
Identify your tax bracket and you know what you owe the government.
Conversely, you can get tax relieved if you've made a loss on your bitcoin; two-way street.
So when you sell your cryptocurrency you should pay tax on the actual capital gain.
The actual % varies according to your tax bracket since the tax system in the UK is progressive.
Example from the HMRC website:
"You bought a painting for £5,000 and sold it later for £25,000. This means you made a gain of £20,000 (£25,000 minus £5,000)."
If you swap in BTC for painting you know you need to pay tax on the £20K.
Identify your tax bracket and you know what you owe the government.
Conversely, you can get tax relieved if you've made a loss on your bitcoin; two-way street.
The IRS now classifies cryptocurrencies as "property." I found this paper helpful for understanding the tax implications/issues: https://scholarship.law.duke.edu/dltr/vol16/iss1/1/.
Thanks a lot for this useful info. This is exact what I've been looking for desperately.
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