Topic: Imposing tax on bitcoin - page 5. (Read 4443 times)
Tax on income applies to Bitcoin. But there is yet to be a tax on the use itself. The general rule is that when you earn a profit, then you will have to pay for that transaction. For example, you bought Bitcoin at $350 and sold it at $700 then you have to pay for that income even if there is no law taxing bitcoin. Because what is taxed is the profit you incurred. Hence you will be liable for $350 x tax rate.
What i noticed in the forum is that bitcoin is used from all over the world, so why you guys always panic because the US may tax or not the bitcoin, how about the rest of the world.
You can use Altcoins instead of Bitcoin as generally there is a conversion rate based on pair in exchange with RESTAPI. there are a lot of solutions to avoid taxation.
how about Europe ? will they ban or tax bitcoin ? what would happen if they decide to tax Bitcoin ? Will europe leave Bitcoin behind ? Will the governments tax the wallets ? or the transactions ?
You can use Altcoins instead of Bitcoin as generally there is a conversion rate based on pair in exchange with RESTAPI. there are a lot of solutions to avoid taxation.
how about Europe ? will they ban or tax bitcoin ? what would happen if they decide to tax Bitcoin ? Will europe leave Bitcoin behind ? Will the governments tax the wallets ? or the transactions ?
Anything can possible in this cruel world because bitcoin is not governed and ruled by the government there many individuals who are mining and buying bitcoin with low transaction fees.
That's technically impossible, so not that much to fear about ! What they could do maybe is to impose something on shops, but we'll simply go somewher else 
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It affects the adoption as well the price to higher extent. More users were into bitcoin to avoid taxation, if taxes were levied surely the decentralization gets converted to semi decentralized. Users identity and transaction details too will gets revealed. Without doubt a big percentage of potential loss will be experienced.
And this is going to be a bad news for us here in bitcoin community if that happen. Yes this is the reason why more people are into bitcoins to avoid taxes and if tax will be implemented soon in bitcoins majority of users might not use bitcoin anymore. I think it is not just bad news. The problem of Bitcoin being not adopted by several merchants is not only of the volatility but because some government refused to acknowledge the legitimacy of bitcoin as a currency. If they impose a tax on bitcoin, it will somehow bring a good impact to the community. People will then know that bitcoin is legal and the wrong belief about bitcoin will be changed.
It would be easy for bitcoin in this current state to be taxed in my opinion. Since the lack of direct bitcoin to goods usage, people go to the exchange to convert their bitcoin to cash to buy stuff, the government will just knock on this exchanges and put some regulatory rule about taxing bitcoin that is converted to cash or vice versa.
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?
This is very interesting,how can they do that,do they have a technology to do that ,bitcoin is not a property of the us government,they are worldwide who are they gonna prosecute,they can only control us based merchants and users and how about overseas can they have control over these users.
Report says the US federal court approved IRS collection of coinbase users database. The summons cover virtually all coinbase users who were clients from 2013 to 2015. The IRS might use this to investigate other well known or sizable exchanges.
It affects the adoption as well the price to higher extent. More users were into bitcoin to avoid taxation, if taxes were levied surely the decentralization gets converted to semi decentralized. Users identity and transaction details too will gets revealed. Without doubt a big percentage of potential loss will be experienced.
But up to my understanding, it would be too hard for government to impose taxes for bitcoins. Because they will be unable to tax for saving and using bitcoins. They will get chances only a user cashing out his bitcoin into his bank accounts/cards. So, people will do person to person cash out and will avoid taxes is possible. I guess we need not to worry about the possible taxes in future being a bitcoin user. Only bitcoin business might need to pay taxes compulsorily.
If Bitcoin will impose taxes, it will all pay, and business and ordinary users. I would very much not want
It affects the adoption as well the price to higher extent. More users were into bitcoin to avoid taxation, if taxes were levied surely the decentralization gets converted to semi decentralized. Users identity and transaction details too will gets revealed. Without doubt a big percentage of potential loss will be experienced.
But up to my understanding, it would be too hard for government to impose taxes for bitcoins. Because they will be unable to tax for saving and using bitcoins. They will get chances only a user cashing out his bitcoin into his bank accounts/cards. So, people will do person to person cash out and will avoid taxes is possible. I guess we need not to worry about the possible taxes in future being a bitcoin user. Only bitcoin business might need to pay taxes compulsorily.
It affects the adoption as well the price to higher extent. More users were into bitcoin to avoid taxation, if taxes were levied surely the decentralization gets converted to semi decentralized. Users identity and transaction details too will gets revealed. Without doubt a big percentage of potential loss will be experienced.
And this is going to be a bad news for us here in bitcoin community if that happen. Yes this is the reason why more people are into bitcoins to avoid taxes and if tax will be implemented soon in bitcoins majority of users might not use bitcoin anymore. 
It affects the adoption as well the price to higher extent. More users were into bitcoin to avoid taxation, if taxes were levied surely the decentralization gets converted to semi decentralized. Users identity and transaction details too will gets revealed. Without doubt a big percentage of potential loss will be experienced.
Government imposing tax on bitcoin is very possible, but In my opinion it will be very hard. It will be very hard since anyone who wants to evade tax can just create new address. I also think that government should not impose tax on bitcoin after all the miners are the one who mined all those bitcoins that can be used now and government didn't took part in it so why tax it? Well they gain tax now from bitcoin through electric bills, etc. of miners and of course it's users.
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?
Governments might try to follow suit, but chances are it is going to be incredibly difficult to impose and collect the taxes from people who simply don't want to pay them. The closest they can get will be taxing exchanges.The value will more than likely go down, since people will try to get out of being taxed. Shouldn't be too damaging, however ti will affect local markets considerably.
If they try to tax bitcoin, and they use the exchanges for such people should swicth to altcoins, to avoid the tax, in the general bitcoin could loose interest very fast. For other side legalizing bitcoin could bring advantages, but i dont believe it would good to we be exposed into how many bitcoins we do have, imagine someone know you own several bitcoins and get the information paying some fee, this would make bitcoin a dangerous currencie to hold.
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?
It will take tons of deep research on how they will able to tax the "bitcoin" itself. But you know we already feel that we are already taxed just on a different form.
I already stated this in other thread, some of the legit local exchanger that is a registered company in a certain country faces all the rules applied as a company. They are the one who pays tax to the government as part of complying with the rules of the said country. Because of this, expect some additional but slight fees every transaction or services we are using in the said exchange.
Here in our country, it's present now in one of our local exchanger. But it's fine for us since the services is really great and there are lots of offered services where we can use our bitcoin thru this exchanger.
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?
Since bitcoin designed as decentralization network, the gov will not touch us easily, as long as we can be careful to using anything related bitcoin service and not giving a personal data.
If this happens, the effects will be mass, will be a lot of protest and the price movement will be slowly, people waiting for each other, sell wall could be happens.
Yes I heard the IRS is coming knocking on Coinbase's door asking about it's practices and it's members info.
Now that is concerning to bitcoiners who use them from the USA.
Now that is concerning to bitcoiners who use them from the USA.
Any source?
Yes I heard the IRS is coming knocking on Coinbase's door asking about it's practices and it's members info.
Now that is concerning to bitcoiners who use them from the USA.
Now that is concerning to bitcoiners who use them from the USA.
Bitcoin is a commodity in the US, if they want to tax every transaction, they will have to re-define Bitcoin as a currency. You have to report Capital Gains and extra income on your tax return, so you are already paying taxes or should I say, should be paying taxes on Bitcoin.
If you not doing that, you might end up with huge penalties and also some jail time for tax evasion.
If you not doing that, you might end up with huge penalties and also some jail time for tax evasion.
People have the advantage to maintain a form of total silence when it comes to what they are gaining in Bitcoin, what they are holding in Bitcoin, and whatever else they do with their coins. It's easy to not declare anything to the tax agency as the far majority of the people here are doing already. They totally depend on your honesty when it comes to declaring your holdings and profits, and all other things related. If you don't declare any of your Bitcoin holdings or profits or whatever else, you don't pay anything. But if you're being completely honest and open about everything, then sure, the government will welcome you with open arms. But then again, officially, you're committing a crime when you avoid paying tax.
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?
Governments might try to follow suit, but chances are it is going to be incredibly difficult to impose and collect the taxes from people who simply don't want to pay them. The closest they can get will be taxing exchanges.The value will more than likely go down, since people will try to get out of being taxed. Shouldn't be too damaging, however ti will affect local markets considerably.
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 already do charge tax. You are advised to pay VAT, they probably won't track it, but it may be worth doing so you don't get caught and given a large fine.
Currently there is little ways of tracking the owners of bitcoin (limited to bitcoin adresses and what is given by the owner of that address).
So it does already charge tax and many other countries do as well.
Soo why would use their wallets if we do have already several wallets providers, and i doubt they can force any of them to put those fees, we do like freedom and if we find any provider acting together with any country we will switch almost instant, bitcoin its decentralized and makes no sense to use anything that has someone under the control.
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