Author

Topic: Question regarding taxes (Read 144 times)

full member
Activity: 210
Merit: 119
January 14, 2018, 03:38:51 PM
#8
You pay no tax. Bitcoin is not money it is "magical internet money" it's virtual and piece of code. You alkoeed to trade whenever you like for goods and services. You may accept to be paid in food if you like. You don't pay tax in the food so you won't in the bitcoin. The tax man doesn't have a Bitcoin address so there is nowhere to send it.
Again, this differs from country to country. I know of one country where profits from bitcoin sales are taxed just like profits from any other sales. Whether the tax authority has a bitcoin address is irrelevant, as the profits are in fiat currency and tax is also levied in fiat. Incidentally, if you’re paid in food, you also pay income tax on the value of said food. I expect this applies to many other countries as well, because otherwise employers would likely pay their employees in groceries, fuel, Netflix subscriptions etc. Smiley
hero member
Activity: 966
Merit: 535
January 14, 2018, 03:19:38 PM
#7
You pay no tax. Bitcoin is not money it is "magical internet money" it's virtual and piece of code. You alkoeed to trade whenever you like for goods and services. You may accept to be paid in food if you like. You don't pay tax in the food so you won't in the bitcoin. The tax man doesn't have a Bitcoin address so there is nowhere to send it.
newbie
Activity: 14
Merit: 0
January 14, 2018, 02:52:15 PM
#6
In our country converting bitcoin in to Fiat has no tax but only the transaction charge between transferring funds of bitcoin on one wallet to Fiat amount on another wallet account
legendary
Activity: 2296
Merit: 1014
December 18, 2017, 11:25:41 AM
#5
This depends on in which country you are liable to pay income tax. Maybe check the website of the relevant tax authority?
Exactly this depends on country you live in, often even area you live in and treating bitcoin by tax authorities changes all the time.
So you should contanct tax advisors to know what to do. Its important.
member
Activity: 325
Merit: 26
December 18, 2017, 11:10:48 AM
#4
How does one report earnings at the end of the year if i am investing in bitcoins and altcoins. Would i have to report earnings on everything or only when the funds are withdrawn from the account.

That is a big problem in the US. The laws haven't caught up with the reality on the ground.

Your best defense is to have a good bookkeeping system and to be consistent in your application.

I report fiat to crypto and back to fiat but I keep records for all transactions, including mining (to the best I can).
full member
Activity: 478
Merit: 113
December 18, 2017, 10:50:21 AM
#3
How does one report earnings at the end of the year if i am investing in bitcoins and altcoins. Would i have to report earnings on everything or only when the funds are withdrawn from the account.

What country are you living in? It depends much on that. In most countries you declare ONLY when you convert the crypto coins back to fiat.
full member
Activity: 210
Merit: 119
December 18, 2017, 02:19:44 AM
#2
How does one report earnings at the end of the year if i am investing in bitcoins and altcoins. Would i have to report earnings on everything or only when the funds are withdrawn from the account.
This depends on in which country you are liable to pay income tax. Maybe check the website of the relevant tax authority?
newbie
Activity: 9
Merit: 0
December 07, 2017, 03:39:52 AM
#1
How does one report earnings at the end of the year if i am investing in bitcoins and altcoins. Would i have to report earnings on everything or only when the funds are withdrawn from the account.
Jump to: