Topic: How is Bitcoin taxed?? - page 2. (Read 456 times)
In my country, the Philippines, there is no specific tax for Bitcoin earning. But still it's taxable and it is considered to be filed and paid under the income tax. Accordint to the tax code, income tax is filed annually. And any kind of business not under in any employer should manually file and pay for this. These includes investments earnings from stocks, bonds, mutual funds, real estate, and also cryptocurrency like Bitcoin. But since it is filed manually, then many no longer file it especially Bitcoin is hard to track.
This whole thing about crypto being anonymous is not true at all - we all have to buy through exchanges or localBTC - these automatically include KYC - they know who we are and track through our wallets - I can almost guarantee this.
Thats why I fully intend on paying my taxes.
The IRS even released a statement saying that they will go much lighter on those who report and pay ahead of them catching you.
This is almost always the case. If they can tax it, they will. Thats almost certain, and probably priority number one
Thats why I fully intend on paying my taxes.
The IRS even released a statement saying that they will go much lighter on those who report and pay ahead of them catching you.
This is almost always the case. If they can tax it, they will. Thats almost certain, and probably priority number one
In United States. If you held your Bitcoin for one year or less, that is considered as a short-term gain and is taxed as common or ordinary income. Any bitcoin you sold or spent after owning it for more than one year is taxed as a long-term gain. That's how they charge the tax from bitcoin users in United States. But still depends on what country you are living. Im not sure if other countries are implemented that law. But for as far as i know in Asia which im living, there's no tax for bitcoin or cryptocurrency has implement yet. They won't charge you any tax unless you report your income statement.
When people of each countries are below 18 years old and most of these teenagers are no job then do you think they are not paying taxes in the government because only the employed people are capable of doing, then it isn't because every goods and services that these youngsters tend to use in their daily lives are bond with taxes in general, it's same goes by with Bitcoin even though there is no government regulation that is straight taxing cryptocurrency in every single transaction.
How can a teenager get an income if the exchanges require you to be older than 18 and you also have to get a bank account to be able to use said income. This also requires you to be of age. If a teenager lies about the age and gets both a bank account and an exchange account he's risking a lot because if this comes out the funds will get frozen and the accounts will probably get terminated, unless the parents step in saying they knew about it and were supervising. What you're talking about is really a niche nobody cares about, just like that guy who gets tries to sneak a bottle of whisky through the customs. No big deal.
When people of each countries are below 18 years old and most of these teenagers are no job then do you think they are not paying taxes in the government because only the employed people are capable of doing, then it isn't because every goods and services that these youngsters tend to use in their daily lives are bond with taxes in general, it's same goes by with Bitcoin even though there is no government regulation that is straight taxing cryptocurrency in every single transaction.
How can a teenager get an income if the exchanges require you to be older than 18 and you also have to get a bank account to be able to use said income. This also requires you to be of age. If a teenager lies about the age and gets both a bank account and an exchange account he's risking a lot because if this comes out the funds will get frozen and the accounts will probably get terminated, unless the parents step in saying they knew about it and were supervising. What you're talking about is really a niche nobody cares about, just like that guy who gets tries to sneak a bottle of whisky through the customs. No big deal.
When people of each countries are below 18 years old and most of these teenagers are no job then do you think they are not paying taxes in the government because only the employed people are capable of doing, then it isn't because every goods and services that these youngsters tend to use in their daily lives are bond with taxes in general, it's same goes by with Bitcoin even though there is no government regulation that is straight taxing cryptocurrency in every single transaction.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
If bitcoin is legal in your country then there is a tax policy in which part of the regulations. Here in our country tax will be collected thru local exchanges in which every time you change your bitcoin to fiat you will pay extra charged because it already included the tax. Like value added tax in which every time you purchase a thing there is additional tax to pay but if the bitcoin is not legal and not ban to then you should not be worrying about bitcoin taxes anymore.
Is it like that?I never paid any extra charge while buying bitcoin on any exchanges.
I always buy bitcoins on localbitcoins.com they never charged me like value added tax as you said,so you may try to but at this exchange to avoid any kind of tax.In my knowledge any tax can be made on bitcoin you onlt need to pay taxes while convert your bitcoins into fiat.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
If bitcoin is legal in your country then there is a tax policy in which part of the regulations. Here in our country tax will be collected thru local exchanges in which every time you change your bitcoin to fiat you will pay extra charged because it already included the tax. Like value added tax in which every time you purchase a thing there is additional tax to pay but if the bitcoin is not legal and not ban to then you should not be worrying about bitcoin taxes anymore.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
All the tax issues and concerns in connection with Bitcoin or any cryptocurrency for that matter are depending on the country where you are a citizen of. Laws varies from one territory to another and there are some countries which still have to officially pronounced on how they gonna collect taxes on their people dealing with Bitcoin and just allowing the normal activities of trading to flourish first. In USA, you are obliged to declare whatever capital gains you earned and I think this is the same thing with trading...it all centered on the tax on income and gains similar to other investment instruments. The best thing to do is to ask someone (maybe an accountant, if you have an access) on the tax laws to make sure that you are not violating any as we know that getting entangled with the tax man can be a big headache. As many are saying, there are two things we can't avoid here in this world: tax and death. So we might as well pay our taxes appropriately and timely while still living and doing some business even if we are into Bitcoin or cryptocurrency.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
Okay lets assume that you do mean about direct taxation on bitcoin then this thing is impossible since bitcoin cant really be taxed directly since its a decentralized thing this is why government doesnt really like it since they cant able to control it but when we do talk on indirect way of taxation then this time is possible where they would really regulate those things which do involve into bitcoin business like on exchanges which they would really imposed taxes but well depending on a certain country on where those exchangers located.
the bitcoin is taxed by the mining who Ensure the security transaction of bitcoin
Wow, that was really helpful. Thanks for sharing!
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/.
I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
Jump to: