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 458 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.
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?
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