Spending my Bitcoin on GOLD / SILVER?... Do I have to pay tax?

dfox101

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Quote from: beerlover on July 11, 2016, 02:26:05 PM

Quote from: Cresciuanto on July 11, 2016, 11:16:25 AM

but i think i have never seen such an exchange where the exchange of bitcoin in gold or Silver is done. so my personal view is that if there are such exchange who can convert your bitcoin into gold or silver then you must have to pay tax to them.

There are many websites that accept bitcoins as payment mode to buy gold/silver:
bitgild.com
amagimetals.com
veldtgold.com
coaex.com

And many more websites are planning to implement bitcoins as a payment mode. It's only when we convert bitcoins to fiat that we need to care about taxes else it's nothing to fear about.

Interesting, so if I buy gold with bitcoins, I will get gold coins (say) delivered to my home, I don't this will have tax consequences right (precious metal seller don't report to IRS)? Then when I sell gold coins, it can be a taxable event. Any comments? I am living in US.

BoXXoB

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Quote from: Indrawan77 on December 30, 2016, 08:18:39 PM

In my country you will be taxed, if you cashed out in a form that the government legalize, like gold silver oil or fiat, you need to pay tax, but if you exchange it to another crypto then you dont need to pay tax

It's pretty much the same over here too. As long as you don't exchange your bitcoins to say € or spend it on something such as gold, electronics, a service ... (pretty much whatever that's worth money) you don't have to pay taxes. But once you spend it you're pretty much going to have to pay taxes. The tax could be income tax, capital gains tax etc. depending on how you acquired those said bitcoins. I recently had to go through some issues regarding taxes on bitcoin so I've got a tiny bit of experience with it.

Indrawan77

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In my country you will be taxed, if you cashed out in a form that the government legalize, like gold silver oil or fiat, you need to pay tax, but if you exchange it to another crypto then you dont need to pay tax

zeze18

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Greetings sir ,, pay taxes is an obligation for citizens who already have their own income ,, but if in your country there are rules that apply on the use of excessive bitcoin Huh

learing

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Quote from: yedogleg on February 13, 2016, 05:12:08 PM

Hello,

I have started earning bitcoin by doing technical jobs and website design I have saved up quite a bit of balance over the previous 8 months I have not actually sold any into my bank account as I was worried about the tax implications.

If I buy for example GOLD bullion with my bitcoin, does that mean it is tax free?
BUT if I sell my bitcoin for fiat such as GBP or USD I have to pay tax as it's considered income?

Am I correct in saying this, if so would I be better buying gold than cashing out?

I only want to get rid of my bitcoin as the price seems to be dropping

I don't think it is right to put tax into bitcoin

Bitcoin is a thing that is tax free. no government.

I have started earning bitcoin by doing technical jobs

good , do you have ability to code an exchange , if so PM me.

Dammitt

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Your tax payment is required in civil matters other matters is you don't have to pay a tax for bitcoin. But here's what country you live in is important in this regard. Bitcoin has no tax but according to different country taxation system about gold and silver.

kryptqnick

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Quote from: yedogleg on February 13, 2016, 05:12:08 PM

Hello,

I have started earning bitcoin by doing technical jobs and website design I have saved up quite a bit of balance over the previous 8 months I have not actually sold any into my bank account as I was worried about the tax implications.

If I buy for example GOLD bullion with my bitcoin, does that mean it is tax free?
BUT if I sell my bitcoin for fiat such as GBP or USD I have to pay tax as it's considered income?

Am I correct in saying this, if so would I be better buying gold than cashing out?

I only want to get rid of my bitcoin as the price seems to be dropping

We can skip all the complications with taxes and stuff. In theory we have to pay taxes, of course. In practice you can ignore that fact and I think it is easier to do it so, because bitcoin is not actually regulated in the countries mostly. I think it is a good advice to find some people on localbitcoins and sell the btc. Then you take the money and buy the gold if you want to. But keep in mind that btc price can become a lot more than now and gold is just quite stable and reliable.

xuan87

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Quote from: markyminer on November 01, 2016, 01:13:38 AM

Quote from: Dora Doll on October 23, 2016, 05:55:41 PM

i think if government has not yet consider bitcoin as legal currency then you do not have to pay tax on gold or silver both investment is also illegla to use.

yes that will be right as we have to pay tax on legal things only and no country still consider bitcoin as legal currency therefore we do not have to pay tax on bitcoin therefore there will be no tax on silver or Gold if you are buying it using bitcoin.

if you are earning bitcoin then you don't need to pay tax because there are no clear regulation, however if you exchange it to fiat the government will consider it as income, you are going to be taxed, and in my country buying gold already being taxed, but if you are buying with bitcoin then it will no tax since the government can't track you

markyminer

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Quote from: Dora Doll on October 23, 2016, 05:55:41 PM

i think if government has not yet consider bitcoin as legal currency then you do not have to pay tax on gold or silver both investment is also illegla to use.

yes that will be right as we have to pay tax on legal things only and no country still consider bitcoin as legal currency therefore we do not have to pay tax on bitcoin therefore there will be no tax on silver or Gold if you are buying it using bitcoin.

Dora Doll

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i think if government has not yet consider bitcoin as legal currency then you do not have to pay tax on gold or silver both investment is also illegla to use.

zodin

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in my area we are even not paying tax on Gold or Silver even in fiat currency, therefor i do not thing that it is necessary to pay tax on Gold or Silver in bitcoin.

Superbitzz

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Quote from: Hoor on October 19, 2016, 03:41:28 AM

in my country there is no tax on Gold or Silver if you buying i from shop therefore you do not have to pay tax either you are using fiat or bitcoin to buy it.

yes and same is the condition in my area, we are also not paying tax on gold and silver it is really tax free and so there is also no tax on gold or silver even id you are buying it on Bitcoin.

Hoor

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in my country there is no tax on Gold or Silver if you buying i from shop therefore you do not have to pay tax either you are using fiat or bitcoin to buy it.

Universat

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Quote from: Vikingr on July 27, 2016, 04:19:40 PM

I don't know about other taxes, but at the time when you will buy it then the seller will ask you a price including the sales tax on them, so in that case you will pay the tax.

in my area there is no tax on gold, as i have bought so many jewellery for my wife but never pay tax on that, my be the reason is that we are in tax free zone and we do not have to pay tax on gold or silver.

Superbitzz

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Quote from: abugseuf on September 20, 2016, 08:45:59 AM

Quote from: gentlemand on July 30, 2016, 05:31:08 PM

In the UK certain iterations of gold coin are capital gains tax free and there's no value added tax on gold, but there is on silver. Trouble is the OP isn't declaring tax on the Bitcoins earned to buy them.

in Pakistan there is not any kind of tax on gold or silver, we just buy it from shops in markets without paying any kind of tax, so if the shopkeeper is ready to accept bitcoin for shopping gold or silver then you can buy it using bitcoin without paying any kind of tax.

yes there are so many other areas where there is no tax on buying gold or silver, so if you are buying gold or silver you have no tax to pay, but still it depend on your country strategy if your country has declare bitcoi as legal currency and there is also tax on buying or selling gold then you will certainly pay tax on gold or silver.

abugseuf

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Quote from: gentlemand on July 30, 2016, 05:31:08 PM

In the UK certain iterations of gold coin are capital gains tax free and there's no value added tax on gold, but there is on silver. Trouble is the OP isn't declaring tax on the Bitcoins earned to buy them.

in Pakistan there is not any kind of tax on gold or silver, we just buy it from shops in markets without paying any kind of tax, so if the shopkeeper is ready to accept bitcoin for shopping gold or silver then you can buy it using bitcoin without paying any kind of tax.

PsursV

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Quote from: gentlemand on July 30, 2016, 05:31:08 PM

In the UK certain iterations of gold coin are capital gains tax free and there's no value added tax on gold, but there is on silver. Trouble is the OP isn't declaring tax on the Bitcoins earned to buy them.

we have no tax on Gold and even on Silver, both are tax free, but the problem is there here in our area there is not a single shop who are ready to accept bitcoin for shopping Gold or Silver therefore we must convert bitcoin in to our local currency and after that we will be able to buy Gold or Silver.

Universat

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to me as bitcoin is not legal in our country, and most of the shopkeepers have no idea about bitcoin therefore they are not going to receive bitcoin for shopping gold or silver, i think still it need a lot of time that the people may know about bitcoin and specially the shopkeepers who are mostly illiterate. and have no ide about computer and internet.

Maesters1-

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Quote from: Vikingr on July 27, 2016, 04:19:40 PM

I don't know about other taxes, but at the time when you will buy it then the seller will ask you a price including the sales tax on them, so in that case you will pay the tax.

in our country the sales tax is already included in the price of the product, but on gold and silver i have no clear idea, i thine we also pay tax on gold and silver in its sales price. but we talk about bitcoin i can say that there is special estimate to pay tax on gold or silver while buying it on bitcoin.

Universat

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to me i think not a single country has yet impost tax on bitcoin, therefore you dont have to impose tax on buying Gold or Silver. if you are going to buy it using bitcoin. but still it depend on the country policy that either they will allow you to buy something in bitcoin or not.

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