Topic: If i dont sell my bitcoins for the year i still have to pay taxes ? (Read 227 times)
December 26, 2017, 12:42:07 PM
On tax issues, it is necessary to be guided first of all by the legislation of the country of residence. As a general rule, a tax is levied on the real profit from operations with the crypto currency, that is, if a citizen makes a specific operation with a crypto currency for its exchange, sale and profit from it. If the crypto currency is simply stored in a purse and its value increases as its rate increases, it is not necessary to pay taxes with this increase. After a while, the crypto currency may fall in price and if you paid for the income at its increase in value, then in this case already the tax authorities will have to return you, since the actual stay for the whole period of time was not there? Therefore, taxes are paid for real, not imaginary income.
December 26, 2017, 10:58:59 AM
In my opinion, there is no special calculation of the benefits of bitcoin investment.
Just like a commodity or another, the calculation of bitcoin tax I think Normal course, the advantage of the difference between the sale price and the purchase price, it becomes the object of tax.
So I think, as long as bitcoin is still in holding, although its price increases 3x, 4x, 5x or more. it is not taxable.
Just like a commodity or another, the calculation of bitcoin tax I think Normal course, the advantage of the difference between the sale price and the purchase price, it becomes the object of tax.
So I think, as long as bitcoin is still in holding, although its price increases 3x, 4x, 5x or more. it is not taxable.
December 26, 2017, 10:26:01 AM
https://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/greatspeculations/2017/07/10/what-you-need-to-know-about-cryptocurrencies-and-taxes/&refURL=https://www.google.com/&referrer=https://www.google.com/
so if i buy bitcoins and it goes up by 3x even if i still ma holding i still need to pay taxes? doesnt make sense but according to these links i do.
There is no need of paying tax if your earnings are in the form of bitcoins . Government has no authority on the cryptocurrencies ,so Until it is converted into your country currency government cannot imply any tax on your savings. https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/greatspeculations/2017/07/10/what-you-need-to-know-about-cryptocurrencies-and-taxes/&refURL=https://www.google.com/&referrer=https://www.google.com/
so if i buy bitcoins and it goes up by 3x even if i still ma holding i still need to pay taxes? doesnt make sense but according to these links i do.
December 26, 2017, 09:38:31 AM
Each Country has your own law, but for me it makes no sense to pay tax for smth you didn't sell. I'd say to just see it as the NYSE portfolio, you don't have to pay tax while you didn't take your profit
December 26, 2017, 09:30:55 AM
Most mistake that I observe in making such topic without details on country or states they reside.. Taxation and regulation of cryptocurrency is a national concern and mostly be answerable on local board.. Most that can answer this is those your countrymen that knows this issues.. Outsiders can only refer a news article but those within your country experienced it..
December 26, 2017, 08:40:48 AM
Here within the U.S a new law has been passed that closes up the loophole that had allowed "Like Kind Exchanges" on crypto currencies for tax exemptions.
Here is the article: http://fortune.com/2017/12/21/bitcoin-tax/
Now every single conversion is counted for capital gains/losses tax. If you want to exchange altcoins for fiat, you have to convert the altcoin into Bitcoins, then convert the Bitcoins into fiat.
Every conversion is now taxed, plus if you mine altcoins, that is seperate times you will be required to address the tax situation.
Miners have to pay tax on self employment income for every coin of theirs that they have minted, and depending on what income, and tax bracket you fall into, you might not gain much profit at the end of the day.
Here is the article: http://fortune.com/2017/12/21/bitcoin-tax/
Now every single conversion is counted for capital gains/losses tax. If you want to exchange altcoins for fiat, you have to convert the altcoin into Bitcoins, then convert the Bitcoins into fiat.
Every conversion is now taxed, plus if you mine altcoins, that is seperate times you will be required to address the tax situation.
Miners have to pay tax on self employment income for every coin of theirs that they have minted, and depending on what income, and tax bracket you fall into, you might not gain much profit at the end of the day.
December 26, 2017, 04:25:31 AM
If you still holding your fund into bitcoin you dont need to pay tax for that until you do not sell or trade your bitcoin into a cash. We considered the transaction fee as tax. Holding a bitcoin is one of the method that keeps you income fluctuates but you will not be consider profit if you do not sell your bitcoin into fiat money.
December 26, 2017, 03:56:28 AM
https://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/greatspeculations/2017/07/10/what-you-need-to-know-about-cryptocurrencies-and-taxes/&refURL=https://www.google.com/&referrer=https://www.google.com/
so if i buy bitcoins and it goes up by 3x even if i still ma holding i still need to pay taxes? doesnt make sense but according to these links i do.
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/greatspeculations/2017/07/10/what-you-need-to-know-about-cryptocurrencies-and-taxes/&refURL=https://www.google.com/&referrer=https://www.google.com/
so if i buy bitcoins and it goes up by 3x even if i still ma holding i still need to pay taxes? doesnt make sense but according to these links i do.
It depends on your jurisdiction and accounting methods.
Probably you don't.
If you are concerned about it, a local tax professional can provide you advice in writing, which if you rely upon, will be proof of any intention to evade taxes.
This is why paid advice is worth more than free advice from internet lawyers, (who are not your lawyer).
Having provably no intention to break a law means that it is not going to be a "criminal" problem even if you are wrong, at most it would be a civil fee.
December 25, 2017, 11:34:28 PM
In my understanding, there is no need to pay any tax as long as you are only holding it. The tax will be levied against you when you convert or sell your Bitcoin or any cryptocurrency into cash or fiat money. They called this as the capital gains tax based on the income or profit you realized out of the transaction so it is so important to keep the records from the time you started to join the cryptocurrency bandwagon so there will be the basis of your declaration and the amount to be paid to the government. Taxes is one thing we could not do away with even if we are into cryptocurrency because the government agency in charge with raising revenues will always be knocking at our door and prying into our business in case we already gain profits.
December 25, 2017, 10:50:31 AM
No. If you don't convert your Bitcoins to hard cash, you don't need to pay any tax on it. As long as your investment remains in the form of Bitcoins, the government can't tax you. If you sell your coins within three years from the purchase, then you need to pay regular income tax over it. If your investment is over three years old, then you may only need to pay the long-term capital gains tax.
Capital gains is a pain for everyone who make profits in the US.
So, if you live in the US and can make profits by sell bitcoin 3 years later, welcome to the world of taxes.
USA want to get a piece of cake in every profits a citizen gains. That's why many people trying to avoid taxes in the US by trade cryptocurrency in secret, or simply don't ever sell bitcoin in the US, but convert it in another country which don't have taxes regulations for convert bitcoin into fiat currency such as in Bolivar.
December 25, 2017, 10:06:57 AM
No. If you don't convert your Bitcoins to hard cash, you don't need to pay any tax on it. As long as your investment remains in the form of Bitcoins, the government can't tax you. If you sell your coins within three years from the purchase, then you need to pay regular income tax over it. If your investment is over three years old, then you may only need to pay the long-term capital gains tax.
Capital gains is a pain for everyone who make profits in the US.
So, if you live in the US and can make profits by sell bitcoin 3 years later, welcome to the world of taxes.
USA want to get a piece of cake in every profits a citizen gains. That's why many people trying to avoid taxes in the US by trade cryptocurrency in secret, or simply don't ever sell bitcoin in the US, but convert it in another country which don't have taxes regulations for convert bitcoin into fiat currency such as in Bolivar.
December 25, 2017, 08:32:03 AM
If you don't sell bitcoins you don't have to pay any taxes. There is no method of determining the price of bitcoin. The Americans called bitcoin property, but you can't pay the tax for the property which does not have explicit prices. Your wallet ever be out of U.S. jurisdiction. Bitcoin becomes capital only after the exchange for Fiat.
December 25, 2017, 07:37:43 AM
No. If you don't convert your Bitcoins to hard cash, you don't need to pay any tax on it. As long as your investment remains in the form of Bitcoins, the government can't tax you. If you sell your coins within three years from the purchase, then you need to pay regular income tax over it. If your investment is over three years old, then you may only need to pay the long-term capital gains tax.
did you guys look at my links ?It says you must pay tax even if you don't sell the bitcoins.
i just want to understand the law correctly.
December 24, 2017, 11:16:49 PM
The rule is quite clear for all of us to follow: Convert your cryptocurrency into fiat cash and if you gain something out of it (meaning there is a profit) then there is a need to pay the so-called capital gains tax. Now, this is not at all peculiar to cryptocurrency because the capital gains tax is applicable to anything which you have invested your money with. You buy stocks, the same principle is applied when you gain something out of the transaction. Now, if you bought a house and then years later you sell it, the same capital gains tax can be computed and applied.
In many countries which have stricter laws made and implemented, people have to be careful that they declared everything where they get some profits and income so that they can avoid the prying eyes of the government agency in charge in collecting revenues. usually, revenue agencies have their own projected amount of revenues every year and they would be doing anything to catch up with the challenge. Declaring and paying the adequate taxes is the best way for us to avoid headaches in dealing with the bureaucratic government.
In many countries which have stricter laws made and implemented, people have to be careful that they declared everything where they get some profits and income so that they can avoid the prying eyes of the government agency in charge in collecting revenues. usually, revenue agencies have their own projected amount of revenues every year and they would be doing anything to catch up with the challenge. Declaring and paying the adequate taxes is the best way for us to avoid headaches in dealing with the bureaucratic government.
December 24, 2017, 12:05:48 PM
you don't have to pay taxes if you do not sell bitcoins
you do not have to pay taxes if you sell bitcoins and you live in one of the countries where
bitcoins do not have any legal status i.e. recognised as a legal tender or regulated
basically:you are a fool if you want to pay taxes for operations with bitcoins
if you live (and pay taxes) in the US(not every state) ,UK,Japan then you have to be worried about paying income taxes,thats if bitcoin is your income
you do not have to pay taxes if you sell bitcoins and you live in one of the countries where
bitcoins do not have any legal status i.e. recognised as a legal tender or regulated
basically:you are a fool if you want to pay taxes for operations with bitcoins
if you live (and pay taxes) in the US(not every state) ,UK,Japan then you have to be worried about paying income taxes,thats if bitcoin is your income
December 24, 2017, 10:29:47 AM
No. If you don't convert your Bitcoins to hard cash, you don't need to pay any tax on it. As long as your investment remains in the form of Bitcoins, the government can't tax you. If you sell your coins within three years from the purchase, then you need to pay regular income tax over it. If your investment is over three years old, then you may only need to pay the long-term capital gains tax.
If you are country is being too strict on implementing tax laws then you would definitely pay up taxes when you are already converting your bitcoin to local fiat but actually you can evade tax if you do want too which you should only cashout on minimal amounts gradually not on bulks so that it wont really caught their attention.For now you shouldnt still bother or stress out yourself regarding on this as long your investment is on bitcoin form. 
December 24, 2017, 03:01:03 AM
No. If you don't convert your Bitcoins to hard cash, you don't need to pay any tax on it. As long as your investment remains in the form of Bitcoins, the government can't tax you. If you sell your coins within three years from the purchase, then you need to pay regular income tax over it. If your investment is over three years old, then you may only need to pay the long-term capital gains tax.
December 24, 2017, 02:38:57 AM
https://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/greatspeculations/2017/07/10/what-you-need-to-know-about-cryptocurrencies-and-taxes/&refURL=https://www.google.com/&referrer=https://www.google.com/
so if i buy bitcoins and it goes up by 3x even if i still ma holding i still need to pay taxes? doesnt make sense but according to these links i do.
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/greatspeculations/2017/07/10/what-you-need-to-know-about-cryptocurrencies-and-taxes/&refURL=https://www.google.com/&referrer=https://www.google.com/
so if i buy bitcoins and it goes up by 3x even if i still ma holding i still need to pay taxes? doesnt make sense but according to these links i do.
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