If you get paid in Bitcoin do you have to pay taxes?

RodeoX

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The revolution will be monetized!

Quote from: DGulari on October 13, 2014, 02:59:34 PM

Quote from: Bitcoin Magazine on October 13, 2014, 11:47:04 AM

And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc..

No. It is not necessary to pay taxes if you earn in bitcoin only. Besides, how can your employer send a W9 form to the government? That form has no place for bitcoin.

Bitcoin earnings are to be considered tax free.

This lady said it best: "Taxes are only for little people" She had 5.4 billion - so she knows a lot about taxes

Um, I hope no one is taking your advice here. You do owe taxes on your bitcoin earnings. You are quoting Leona Helmsley as evidence that you do not. Perhaps you are aware that she was imprisoned for tax evasion? She is not the person you want advising you on taxes.

It is as simple as this: There is no such thing as tax free money in the United states.
Don't be stupid and end up loosing your money from fines, or your freedom.

M8

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Quote from: bitnanigans on October 25, 2014, 05:29:12 AM

Logically, I think capital gains tax would apply to Bitcoin, but I'm not a lawyer nor an expert in these matters. Maybe you won't have to pay taxes if you don't convert to fiat, since Bitcoin values themselves aren't taxable.

Capital gains tax would probably normally apply and like you said usually only if you cash them out, but it all depends on the laws of your specific country so I'd check before anyone takes advice from anyone on here.

zyzzbrah

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Of course you dont. Do you think people here are paying "ad signature campaing" taxes? lol. You only need to pay if you are going to cash out. If you hold, you are free.

bitnanigans

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Logically, I think capital gains tax would apply to Bitcoin, but I'm not a lawyer nor an expert in these matters. Maybe you won't have to pay taxes if you don't convert to fiat, since Bitcoin values themselves aren't taxable.

vicemayor

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I know it varies with jurisdiction but for almost all tax regimes, don't make the simple mistake of thinking "oh, since bitcoin isn't officially recognized as a 'currency', then they (the gov't) can't tax it. How they tax something that isn't cash?!" In fact, there are many non-cash assets that are taxed all the time ... the easiest example being real estate or property. Also, under IRS Form 1099 MISC for miscellaneous income, they cite both products and services as well. While it's unlikely the gov't or IRS will go after people for bartering things like eggs, milk & farm goods - even if well over the $600 of value mark - they'll certain go after larger items or services, if they somehow become aware of it. And, in the case of bitcoin, I'd imagine if the person or company that paid you was 1) in the same tax regime as you 2) declared it or indicated the details of the transaction on their books ... there is only a fair chance (especially if they got an audit etc) that something might lead back to you (if you failed to declare it).

Michel28

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If the government is asking to pay taxes for the exchangers then you need to pay tax for selling or buying coins.

charliemaggot

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Quote from: cafucafucafu on October 13, 2014, 06:02:11 PM

How about the UK? I think there are no BTC taxes.

Yes, the UK, like every other country I can think of, requires you to pay income tax on items of value you received to the value of your own currency. Whilst this may considered a barter, it is still taxed as income.

Quote

As with any other activity, whether the treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies will be subject to CT, IT or CGT depends on the activities and the parties involved.

https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

SomethingElse

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Looking for the next big thing

Quote from: Bitcoin Magazine on October 13, 2014, 11:47:04 AM

And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc..

Isn't Vitalek the creator of Bitcoin Magazine?

SomethingElse

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Looking for the next big thing

It depends one which country. I will be very interested to watch this develop, but yes most countries will want taxes.

Take the US for example though. If you sell things on the internet to people in other states or countries, they do not have to pay taxes.

There might be some loopholes. After all "Bitcoin isn't a currency" in many places.

I mean basically, if I get paid in baseball cards, the government doesn't tax those.

BADecker

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The only time you should pay taxes is if you owe them. If you owe them, then it is honorable to pay them. However, you might be able to get out of paying them.

The point is to get paid in a way that you don't owe taxes. File your W-4 "non-assumpsit" and exempt. This means, no IRS contract = no taxes.

Study here to learn about it and a whole lot of other things:

http://www.myprivateaudio.com/Karl-Lentz.html = Angela Stark's Talkshoe.

http://www.youtube.com/channel/UC5duR4OvEHHxOSdEZhANETw = TrustInAllLaw snippets of Karl's audios.

http://www.broadmind.org/ = Karl's main page.

http://www.unkommonlaw.co.uk/ = Karl's United Kingdom page.

http://www.youtube.com/user/765736/videos?view=0&live_view=500&flow=grid&sort=da = Craig Lynch's snippets page.

http://www.youtube.com/watch?v=HOkAHRzuiOA&list=PLHrkQxgz0mg6kUBciD-HIvTXByqjcIZ-D = Ten great Youtube videos, might be the best introduction to Karl.

http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=127469&cmd=tc = Karl's Talkshoe site.

http://www.youtube.com/watch?v=Iua56K4Mysk = Karl Lentz - The Brian Bonar Incident - YouTube.

http://www.youtube.com/watch?v=cdHLHWS4gPE = Lentz-Sense - don't be a More~On - YouTube.

Other Info

http://voidjudgments.com/ = The Secret is most judgments are Void on their face and not merely voidable.

http://educationcenter2000.com/Trinsey-v-Paglario.htm = Trinsey v. Pagliaro - Attorneys cannot "speak" in common law trials if the one who is bringing the suit orders it. Holding from Trinsey v. Pagliaro: "An attorney for the plaintiff cannot admit evidence into the court. He is either an attorney or a witness."

tzortz

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Depends on the country.

bitgeek

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My answer is you should, but you don't have to.
You just have to be careful and prepared to face the consequences.

cafucafucafu

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How about the UK? I think there are no BTC taxes.

TheButterZone

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RIP Mommy

You have to pay taxes for merely breathing.

Melbustus

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IRS "Virtual Currency Guidance": http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance

Quote

-- Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.

-- Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.

-- The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.

-- A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.

tldr: Yes.

NeuroticFish

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Looking for campaign manager? Contact icopress!

If you are paid in apples, would you have to pay taxes? Depends. If the one that's paying you has his own apple trees, it can go silent.

One of the main reasons the governments don't like crypto is because they cannot control it. Giving them more reasons to hate it is not a great idea imho, so I'd pay the taxes. Not nice, but yeah.. the chances they find out and catch you are not that small. Bitcoin is not that anonymous. There are ways to trace that income. And if you want to convert to fiat at some point, ... they will try to trace that.

pedrog

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Quote from: cp1 on October 13, 2014, 03:01:02 PM

It's just like when you get paid in cash.

Exactly!

Meuh6879

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Sorry, but TAX apply to "physical good" ... and "working for something".
If you move BTC to your familly, you don't have (need) tax to do this (except fees of the bitcoin network).

https://www.youtube.com/watch?v=Oj8eFu72_fc

cp1

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Stop using branwallets

It's just like when you get paid in cash.

DGulari

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KawBet.com - Anonymous Bitcoin Casino & Sportsbook

Quote from: Bitcoin Magazine on October 13, 2014, 11:47:04 AM

And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc..

No. It is not necessary to pay taxes if you earn in bitcoin only. Besides, how can your employer send a W9 form to the government? That form has no place for bitcoin.

Bitcoin earnings are to be considered tax free.

This lady said it best: "Taxes are only for little people" She had 5.4 billion - so she knows a lot about taxes

M8

newbie

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It all depends on the laws of your country. Some wont require taxes unless you exchange it to fiat, but many countries will try tax it in the future.
1AbHnmymnwaCSHRwrFjwRr9r3QzawnTPZB

RodeoX

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The revolution will be monetized!

There is no such thing as tax free income. You will have to pay income tax on bitcoin you earn from work, and capitol gains on any appreciation in value. Of course you can claim a loss if bitcoin depreciates.

LiteCoinGuy

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In Satoshi I Trust

just translate into dollars when you recieve BTC. should be ok then.

RustyNomad

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The government does not give two hoots how you get paid, if you get some they want some.... Grin

John22

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Yes. You are going to deal with bank and the government. So, you need to pay the tax.

transient858

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Of course.

Not doing so will only invite trouble down the road.

Bitcoin Magazine

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And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc..

Topic: If you get paid in Bitcoin do you have to pay taxes? (Read 4668 times)