Topic: How to TAX Bitcoin. An easy way ! - page 7. (Read 4381 times)
If the coding community really wanted to, I suppose we could implement some internal system. The best I could imagine would be some manner of reverse reward system, more of a reverse staking system, based not on held balance, but volume. Say on Dec 31, each wallet calculates a "tax" based on a percentage of the volume/overall balance throughout the past calendar year, then sends that "tax" amount to a known collection address.
Of course, but when it comes to digital assets like Bitcoin countries will either ban it or tax it. So the best outcome for us Bitcoin supports is to let countries accept it as a currency and tax it appropriately
Prior to 1913 when income taxes were legislated, united states economic growth was normally 10% per year.
After income taxes began to strangle the US economy growth stagnated until today we barely have 1% per year economic growth.
The best outcome is for people to realize taxes are poison. They kill economies, strangle job markets, restrict innovation and progress. They also decrease living standards and quality of life.
If bitcoin is ever taxed and regulated, its quality and value will decline significantly. Governments aren't structured nor incentivized to spend tax revenues effectively, fairly or efficiently. Socialism destroys wealth, standard of living and progress. The end.
If your goal is to improve society and civilization.
Encouraging the state to cut taxes, spend more efficiently and streamline operations to cut spending are in your best interest.
People shouldn't support raising taxes at every opportunity unless they want to increase suffering, pain and agony in the world.
Encouraging the state to cut taxes, spend more efficiently and streamline operations to cut spending are in your best interest.
People shouldn't support raising taxes at every opportunity unless they want to increase suffering, pain and agony in the world.
Of course, but when it comes to digital assets like Bitcoin countries will either ban it or tax it. So the best outcome for us Bitcoin supports is to let countries accept it as a currency and tax it appropriately
If your goal is to improve society and civilization.
Encouraging the state to cut taxes, spend more efficiently and streamline operations to cut spending are in your best interest.
People shouldn't support raising taxes at every opportunity unless they want to increase suffering, pain and agony in the world.
Encouraging the state to cut taxes, spend more efficiently and streamline operations to cut spending are in your best interest.
People shouldn't support raising taxes at every opportunity unless they want to increase suffering, pain and agony in the world.
In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
Well as said before countries don't require you to disclose bitcoin addresses but what most countries require is for you to disclose your assets and bitcoin assets should also be disclosed and the only tax you should pay on that in most countries is just income tax
In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
The example does not make sense, if people can hide their cash, stocks, secret bank accounts even if it is illegal to do so according to your example, then why suddenly when it comes to bitcoin everyone is going to say, yeah I’m going to give my information, those people that do not care will hide their bitcoin too even if it is illegal. Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
This required cooperation from wallets providers, they have to separate the bitcoin already taxed and yet so I hope there is a serious study of the tax issue for the wallet providers.
legendary
Activity: 3010
Merit: 1028
Leading Crypto Sports Betting & Casino Platform
Our government treat bitcoin as stock so if your revenue came from trading then it can be taxed. Capital gain that we've earned needs to be reported and it will be taxed by the government, as long as you do trading on regulated exchanger you don't have to worry about reporting taxes. The problem is if you do trading on unregulated it will leads to your revenue will not be taxed. The point is if you want to pay taxes then report them.
The opposite things happened in my country, even if we're already making a trade in a regulated and official exchange, even if already paid the taxes required by the exchanges themselves, we still need to report the income and get taxed about 30%, damn, that's a huge amount of money and only be thrown for the sake of stupid taxes without a good services as a return from government. It's like paying for nothing, at least until the corruption gone.
Our government treat bitcoin as stock so if your revenue came from trading then it can be taxed. Capital gain that we've earned needs to be reported and it will be taxed by the government, as long as you do trading on regulated exchanger you don't have to worry about reporting taxes. The problem is if you do trading on unregulated it will leads to your revenue will not be taxed. The point is if you want to pay taxes then report them.
While in my country the government takes all the taxes and something extra on top by including bull shit excuses in our power bill utility, gas, water and whatever we buy pretty much has tax included by 9% of the value of the purchase we pay tax on whatever we buy and sell.
When it comes to Bitcoin there is the possibility to use a mixer in order to hide your Bitcoins and there is no other way to avoid taxation in Bitcoin.
Well government are always ready put huge to on every thing that is being use by people and that is making profit for me . there could be tow points about implementing it. Between world accepted by all government as a world currency and that will take good time we all knows secondly the government will take on currency of that country and the outline price it rally going up and down every day .it will be trough to fix a widely acceptable rates to express its value in time so I guess government will take a wise decision. When it comes to Bitcoin there is the possibility to use a mixer in order to hide your Bitcoins and there is no other way to avoid taxation in Bitcoin.
It's not that easy as you can think of. Bitcoin is yet to be globally recognized as a currency in the first place, which is not going to happen soon. However, as a tax payer, you can always declare your bitcoins as an asset with some valuation and pay taxes, no one is stopping you from that. But on a lighter note, I will not approve the idea of the government peeping in my bitcoins.
I'm looking into living off Bitcoin legally, and so far I'm thinking the easiest way is to make a company. That way the company has clear accounts with spendings and earnings and can pay all the needed taxes. Then I'm just an employee of the company, with a salary in fiat.
Depending on where you live, you should be able to do this as a corporation, or under your personal income taxes. Keeping track of the accounts clearly are necessary either way, with respect to income, and capital gains.
Government always warn about btc use ! i dont think its legal in many country .
It is legal in most countries... There aren't many countries that put on regulations on bitcoin, most don't even consider it a currency. The only warnings i ever received was from banks that would rather not have me do EUR/BTC exchanges.
Government always warn about btc use ! i dont think its legal in many country .
I'm looking into living off Bitcoin legally, and so far I'm thinking the easiest way is to make a company. That way the company has clear accounts with spendings and earnings and can pay all the needed taxes. Then I'm just an employee of the company, with a salary in fiat.
It will be a long time before that becomes feasible. First, the country has to recognise bitcoin as a currency and also a source of income. That will take years and then the country has to trust and rely on bitcoin enough that it would implement this.
The other issues are avoiding taxes with this new system, and it really looks pretty easy to me. Let me make an example, say for your taxes to be paid you would have to link your bank account and then every year the government would tax you off that account or accounts. You could easily make new accounts and hide money there and avoid a heap of tax that you would have to pay. This is what you are basically suggesting here, except with bitcoin, it sounds nice, but would have too many kinks to work out and it would be way too easy to avoid paying tax with this system.
The other issues are avoiding taxes with this new system, and it really looks pretty easy to me. Let me make an example, say for your taxes to be paid you would have to link your bank account and then every year the government would tax you off that account or accounts. You could easily make new accounts and hide money there and avoid a heap of tax that you would have to pay. This is what you are basically suggesting here, except with bitcoin, it sounds nice, but would have too many kinks to work out and it would be way too easy to avoid paying tax with this system.
legendary
Activity: 3010
Merit: 1028
Leading Crypto Sports Betting & Casino Platform
As I know the taxes is take by government from the people's income/salary/profit. Just because you have 10 btc in your wallet, it doesn't mean you have to pay tax of its amount. I think it's too complex to tax bitcoin. The simplest way they can do is to receive reports from the exchanges about our transactions.
Nah, government don't give a shit about that, what they know is if you have some sort of additional income out of your "Zone" it'll be considered as an additional income even if you're actually just converting your wealth to bitcoin and want to reverse it again.In my country, the taxes is about 30% which absurdly high for someone who has unstable income and "unrecognised job".
If the government is not going to put tax on bitcoin, they will surely find other ways to do so. Sooner or later, when the use of such currencies goes into mainstream, the government would set policies for them to get a share of whatever we own. Even if you just keep you bitcoin, they would most likely find other ways in taxing it. And if you are just a casual user, they would tax the items you would buy, much like value added tax on goods and commodities.
Taxation with bitcoin is possible to some extent. Because with bitcoin government can't trace the bitcoin holding and altcoin holding of particular person. Only through transaction made for the cashing out, the value can be calculated and based on this taxation can be done.
In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
Together with some major bills for insurance and healthcare, that's all they get.
So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.
So the actual way of getting the real numbers is quite bad.
In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...
All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.
Sure it is still possible to hide Bitcoins, but then it is illegal.
...or did I miss something?
You're saying that by the government understanding which accounts you spend money on that they'd be able to trace your revenues? But credits to your bitcoin account might not necessarily be income. It could also just be you making a transfer or deposit. That would need to be differentiated, and whether it will show up as capital gains if the value of bitcoin rises while you're holding it.
But at the end of the day, the amount of tax evasion currently going on with fiat is massive. It just depends on whether people honestly report their revenues or not. Any currency has an opportunity to pay and evade taxes, which would be illegal.
Jump to: