The IRS currently has a capital gains tax on monies made over Bitcoin services. Despite popular belief they make you pay it in USD. The amount of currency value will boost higher without contradiction exactly as any fiat would in most developed countries...
Currencies seem to connect better into circulation plus hold their worth when doing so.
Topic: Imposing tax on bitcoin (Read 4380 times)
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. i like to think about bitcoin, like i think about cash that i found on the street, sure they should be declared, but do the IRS will ever know about it? i don't think so, so it's up to me if i'll declare them or not and the trouble that i might get by deciding to not declare them, still if i not use them nothing bad will happen, no one will ever know how many bitcoin you have
It is quite likely that they will eventually find out
I'm not a US citizen so take my words with a grain of salt, but you should be very cautious in respect to whom you transact in cash with (on the other hand, it is readily applicable to anyone anyway). If I'm not mistaken, any deals involving cash in the amounts exceeding 10,000 dollars should be declared to the IRS, regardless of whether you are an individual or a company. You may not know this, so when you buy something, say, a car from somebody with cash for so much, your seller may declare their income, and the IRS might go after you at the end of the day (to inquire about taxes and where you got this money from)
10k dollars in what time frame? if within a year, i think many poor people are there, so they are not forced to declare, otherwise everyone must declare, i would personally do a transaction with anyone but not reveal my identity, so i'm safe in case i'm dealing with an officer
As I got it, there is no time frame altogether (but I can be mistaken), i.e. every deal or transaction in cash equal to or exceeding 10,000 dollars should be declared separately. About a year ago, this question had been discussed in great detail here, and I posted a pdf file from the IRS site with a form which should be filled in such cases and concise explanation how and when exactly it should be filled...
If you are interested, you can easily find this pdf in Google
I think he meant in one purchase. Purchases of currency or anything over 10K will trigger all sorts of investigation. If your caught you will wish you had paid. Failure to do so is way more expensive.
Don't mess with the IRS
10k dollars in what time frame? if within a year, i think many poor people are there, so they are not forced to declare, otherwise everyone must declare, i would personally do a transaction with anyone but not reveal my identity, so i'm safe in case i'm dealing with an officer
I think he meant in one purchase. Purchases of currency or anything over 10K will trigger all sorts of investigation. If your caught you will wish you had paid. Failure to do so is way more expensive. 
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. i like to think about bitcoin, like i think about cash that i found on the street, sure they should be declared, but do the IRS will ever know about it? i don't think so, so it's up to me if i'll declare them or not and the trouble that i might get by deciding to not declare them, still if i not use them nothing bad will happen, no one will ever know how many bitcoin you have
It is quite likely that they will eventually find out
I'm not a US citizen so take my words with a grain of salt, but you should be very cautious in respect to whom you transact in cash with (on the other hand, it is readily applicable to anyone anyway). If I'm not mistaken, any deals involving cash in the amounts exceeding 10,000 dollars should be declared to the IRS, regardless of whether you are an individual or a company. You may not know this, so when you buy something, say, a car from somebody with cash for so much, your seller may declare their income, and the IRS might go after you at the end of the day (to inquire about taxes and where you got this money from)
10k dollars in what time frame? if within a year, i think many poor people are there, so they are not forced to declare, otherwise everyone must declare, i would personally do a transaction with anyone but not reveal my identity, so i'm safe in case i'm dealing with an officer
I think that will not be good to impose tax on bitcoin we like bitcoin as it is and if they will impose tax on it then we will once again start to face those hurdles which we are already facing in our normal currency and most of the governments of third world countries are not using the tax for the countries but for their own life.
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. I think so too. If the government wants to impose taxes on Bitcoin, it will certainly find a way to do it. M have the power and they make the laws, and we just need to execute them
You are obviously uninformed (or misinformed)
There are quite a few countries that already defined legal status of Bitcoin, which is required to levy taxes on it. For example, in the US capital gains that you obtain from the sale of property or through an investment are taxed. But since Bitcoin is treated as a commodity there, the profits obtained from selling bitcoins are considered as capital gains and thereby fully taxable. The fact of the IRS (the tax agency in the US) sniffing around Coinbase confirms that. On the other hand, in the EU Bitcoin is considered as a foreign currency, and it is not taxable as such
If the Government collect taxes, of course the first step is the Government should admit the bitcoin as one of the official currency. Looks funny, if the Government prohibits bitcoin but want to collect taxes.
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. I think so too. If the government wants to impose taxes on Bitcoin, it will certainly find a way to do it. M have the power and they make the laws, and we just need to execute them
And who? Theirs no currently country who fully adopted it as you said thats why its truly hard to file some taxes for it, but if your country will implement some taxes in your local wallet well posibilities that it will be happen dince since surely they will impose it on wallet charges since they cannot directly sue people online, where anonymous out here.
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. I think so too. If the government wants to impose taxes on Bitcoin, it will certainly find a way to do it. M have the power and they make the laws, and we just need to execute them
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. I think so too. If the government wants to impose taxes on Bitcoin, it will certainly find a way to do it. M have the power and they make the laws, and we just need to execute them
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. i like to think about bitcoin, like i think about cash that i found on the street, sure they should be declared, but do the IRS will ever know about it? i don't think so, so it's up to me if i'll declare them or not and the trouble that i might get by deciding to not declare them, still if i not use them nothing bad will happen, no one will ever know how many bitcoin you have
It is quite likely that they will eventually find out
I'm not a US citizen so take my words with a grain of salt, but you should be very cautious in respect to whom you transact in cash with (on the other hand, it is readily applicable to anyone anyway). If I'm not mistaken, any deals involving cash in the amounts exceeding 10,000 dollars should be declared to the IRS, regardless of whether you are an individual or a company. You may not know this, so when you buy something, say, a car from somebody with cash for so much, your seller may declare their income, and the IRS might go after you at the end of the day (to inquire about taxes and where you got this money from)
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S. i like to think about bitcoin, like i think about cash that i found on the street, sure they should be declared, but do the IRS will ever know about it? i don't think so, so it's up to me if i'll declare them or not and the trouble that i might get by deciding to not declare them, still if i not use them nothing bad will happen, no one will ever know how many bitcoin you have.
another thing is, how IRS is going to track those that use bitcoin without exchanging them for fiat, to buy stuff on openbazar, purse, and other unknown business here and there?
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
Maybe in some place, but that is not true in the U.S. Diamonds are not currency either. However if you find a diamond you owe taxes on it. Any wealth you gain is taxable in the U.S.
It is totally impossible that they impose a tax on bitcoin as they do not accept bitcoin as a currency for their country and they do not have any control on any wallet or maybe some wallets. They can do if they start accepting it for their country and will start their wallets.
I am not against taxes, they are mandatory for today's world, think about a study who compares the tax rates to the development level, as parts of GDP, they started from the middle age to 2010, i loosed the link but they said that the development level of a country is bound to the tax's GDP part as it is used to provide services to the citizens. This is true as now you can compare developed countries and the other, the first pays taxes while the others don't, and you can see the result in everyday's life
The problem is not with taxes as such
It is with corrupt governments which are, first, not using them efficiently, and, second, using a solid part of them for supporting the government itself. But in the latter case the taxes are again not used efficiently since government is not efficient overall. If you want to know why the government can't be efficient, I can answer that too. Because power cannot be demonopolised in principle (it can only be destroyed completely), and the government is the power monopolist of sorts. But monopolists don't need to be efficient by definition
I don't say that we should live in a tax free world, this would bring us back to the middle age, but we should be taxed for more things, at lower rates
In the Middle Ages taxes were paid with pure gold, with primarily silver coins used for trade
I am not against taxes, they are mandatory for today's world, think about a study who compares the tax rates to the development level, as parts of GDP, they started from the middle age to 2010, i loosed the link but they said that the development level of a country is bound to the tax's GDP part as it is used to provide services to the citizens. This is true as now you can compare developed countries and the other, the first pays taxes while the others don't, and you can see the result in everyday's life.
I don't say that we should live in a tax free world, this would bring us back to the middle age, but we should be taxed for more things, at lower rates.
Take the VAT tax, it should be lowered, and the difference can be taken back by other taxes, like Pet owning tax ( this is just an example ), it is just a matter of accounting game, but at the end, taxes can be lowere with an extended coverage, at the condition that people actually pay them.
I don't think that a 1% tax on Bitcoin will disturb anyone.
I don't say that we should live in a tax free world, this would bring us back to the middle age, but we should be taxed for more things, at lower rates.
Take the VAT tax, it should be lowered, and the difference can be taken back by other taxes, like Pet owning tax ( this is just an example ), it is just a matter of accounting game, but at the end, taxes can be lowere with an extended coverage, at the condition that people actually pay them.
I don't think that a 1% tax on Bitcoin will disturb anyone.
What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?
I don't think they can do this until bitcoin is not being used legally in the country and has no physical existence nor there is any usage of it around them, they would have been able to do this only if they have already legalized bitcoin in their country and people were using it openly there, i guess.
What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?
They can only tax merchants operating within their territory and if that will be the case many US merchants will choose to operate using vpn and underground where they cannot be trace,I don't know if they have the means to trace and tax each transactions ,bitcoin works very much different from all the other payment processor.
You are talking not so much about merchants as service providers
And only about those services which can be rendered remotely, including online services. But what about merchants and service providers that offer tangible goods and services such as, for example, hairdressing services? They need certain physical presence, so to speak, and they could be easily taxed or caught if they choose not to be taxed
Technically, taxation would involve tangible and intangible good. Regardless if you have a physical shop or an online (or even secret shop). What matters is that you gained income from your activities then that is taxable. A hairdressing services is much more easier to tax as it has a physical place of business where the service is rendered. Unlike digital goods where you don't even know which country it is coming from (if no info is disclosed). And these kinds of business is harder to tax because there are different taxation laws per country. But in the end everybody has to pay taxes on their earnings.
That's what they are always telling us
But as Thomas Jefferson once said (and hilariousandco posted it some time ago), if a law is unjust, a man is not only right to disobey it, he is obligated to do so. Personally, I think that governments are already heavily taxing their population through inflation, and while in the most developed countries such as the US and EU the inflation rates may not be high (up to 3-4% annually), in most other countries it is well above what could be called small or negligible inflation. But everyone should decide on their own, of course
What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?
I don't think they can do this until bitcoin is not being used legally in the country and has no physical existence nor there is any usage of it around them, they would have been able to do this only if they have already legalized bitcoin in their country and people were using it openly there, i guess.
What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?
I don't think they can do this until bitcoin is not being used legally in the country and has no physical existence nor there is any usage of it around them, they would have been able to do this only if they have already legalized bitcoin in their country and people were using it openly there, i guess.
They are now trying to implement that and their first move is ti chase coinbase' transactions wayback 2013-2015 if I'm not mistaken. US is surely in big debt that's why they wanted to touch down bitcoin and wants to impose tax for it. I'm pretty sure that with this move of US, many countries are going to do the same and follow this path of US.
Jump to: