Topic: Suddenly I'm curious, do I need to pay taxes on Bitcoin income? (Read 392 times)

That's how Al Capone got taken down...what route will OGNasty take?

Will he claim he didn't need to pay taxes because he wasn't a retailer of the coins (lol)?
Will he claim he didn't need to pay because his home improvements were ponzi improvements?
What we he say about his forced donations on the tax evasion scam he is still promoting?

Will he claim he paid taxes on the 6,000 bitcoin he made on his ponzi, but claims he did not?   That will be be an interesting one to follow.  The SEC has blockchain proof he got the coins - will the IRS subpoena that?

A large percentage of taxes are charged. Luckily I come from a country outside America. I am only subject to income tax at a rate of 0.1% x transaction value if I am a crypto seller acting as a physical trader. 0.2% x transaction value for non-physical traders.
A fee of 0.1% x transaction value is also charged for crypto asset miners. This refers to government regulations through the Ministry of Finance^[1].
Starting in 2022, receipts of Rp. 539.7 billion in our fiat currency (IDR) has been collected from crypto taxes^[2].

I think you do in fact, I think that you should pay your taxes no matter where you get it because there's no other way around it and in my opinion, if you attempt to evade your taxes, you're definitely going to get the ire of your government and we know how much they don't like it when the blood that keeps them alive which is the taxes is being cut off from them or that they're lacking in it, they're going to put all of their resources just to make you pay for it more than you owe, that's how vile they do it when you do tax evasion, that's why corrupt politicians are always placed on these positions because they don't want their cronies to get caught and the money that you get from this is so huge that it's a dream come true to work in tax bureau or organization in your country, it's always going to be a corrupt organization.

Some people might be off put with the fact that you do need to put up with paying taxes but there's not much alternative, they're cracking down on crypto exchanges that trades with privacy coins like Monero and they're snaking their way into bitcoin which is inherently the one that would fight these tax thing but look at it now, a little investigation and they can easily track you down especially if you're not actively evading them which means you're making lots of mistakes.

This is a massive and important distinction IMHO.

Some of us just plan on holding for a long, long time.

If you are earning any income then governments want their cut, but how much if any you are subject to pay will depend entirely on the source of your income and the tax laws on your country, so consult a tax attorney if you are really worried about the taxes you may need to pay during the bull run if you are planning to sell some of your coins at the top of the market, but even if you were not eager to sell, there are some countries in which you have to report your bitcoin holdings anyway, so inform yourself about what it is required out of you by the law.

That will happen if the government imposes such a law applied to Bitcoin and other cryptocurrencies. The best thing to do is ask authorities where taxation is assigned as they are more knowledgeable about it. But in my country, no taxes have yet been imposed on all holders, maybe just for now as the adoption isn't that huge enough to gain attention from them but there can be changes in the future.

You better approach the office where it belongs just clear your doubts and be able to answer your queries because it will depend on our country's leaders. We know that taxes are very important to them and we can't escape from it, if not today, it can be someday.

So you asked ChatGPT, and you felt the need to share that "knowledge" with the rest of the community? What is the real purpose of such a topic? Crypto taxes are a complex issue, and repeating generic info from a language model isn't helpful. If you want a genuine discussion on a topic, don't just copy random stuff from chat bots, but offer your original ideas or questions.

Hold on a second, is this supposed to be a question or some tutoring phase on its own? If you could believe what an AI bot told you, then why should you bother asking further questions?

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It's mandatory in most countries that you pay taxes for everything earnings; but unless you trade your coins, you're not eligible for any sort of taxation.
I'm not seeing any future purpose for liberation against the governments. That's just sad!

OP Don't be worried about it. Taxation is up to you. If you live in a country where the Government has implemented taxes (Capital gain) on Bitcoin transactions, obviously you should be going to pay for it, but if you don't so you don't need to be worried about it.
 
Taxes (Capital Gain) are based on certain principles that are different for each country, that is, it depends on the Governments of these countries which regulations they implement. Which are given below point.

• Crypto Trading
• Crypto Mining
• P2P like selling cryptocurrency for fiat currency i.e., EUR, USD, etc.
• NFT buying/selling with cryptocurrency 
• Using crypto for purchasing services or goods 

 
This is a common rule that is generally practised in the country for capital gain. The rest of the taxation depends on which country which cretaria it rules. If you want to know more, you can visit this site and get more information. How much tax and criteria are there in which country?

its the government, we all pay taxes. tax laws were being updated recently in US. the government is asking 44%. and irc 25% for the unrealized gains. holding BTC in your wallet means you will be asked to provide 25% of the gain. i'm not sure if this is the correct data but surely if it is then this is going to drive people mad.

every time you purchase something, i think in the receipt you can already see that you paid for the tax as well.

Taxation totally depends on your jurisdiction and where you live. For me, Bitcoin is illegal here, so I can't pay tax even if I want. If your portfolio increases in real life, you must submit your tax. Otherwise, they would ask where you got the funds. So if crypto is legal there and you need to use your funds in real business, then you would ask about the source of funds. So ultimately, you will face tax issues. So contact your tax lawyers and share the details with them. They will find a solution for you. 

ChatGPT is unable to provide answers that correspond to reality. If there is something that makes you want an answer that is in accordance with reality, for example regarding taxation of Bitcoin income, there is no need to ask the tool, just ask here in this forum because each country has different rules regarding income tax.

I pay tax on income originating from Bitcoin and other crypto which is deducted directly by the exchange I use in my country at a predetermined amount.
I cannot escape or avoid tax cuts.

It all depends on your citizenship since many countries do not require you to pay taxes, but most will ask you to fill a form, even if it's an exemption form
In Europe in general the taxable event takes place when you sell bitcoin, not when you receive it. This means that when you get paid for a job you don't pay taxes. When you win bitcoin in casino, or you buy it on an exchange, you don't do that either, but when you buy yourself a new car using that bitcoin, even if it wasn't exchanged to fiat, you're supposed to report that and pay tax.

You know part of the reasons the government of most countries are fighting against the adoption of Bitcoin? it is because most users of bitcoin take advantage of the decentralized nature of Bitcoin to maneuver the system and evade, avoid and even reduce their tax rate because they know it will be difficult for the government to trace their income and determine how much of their net income would be taxed. Tax evasion is bad and does not encourage development in any country. It is the duty of every citizen to pay tax to the government of his country therefore, you would be doing the right thing if you keep paying your tax without considering if the government can trace you or not. And to you question, yes you need to pay taxes on your Bitcoin income.

It depends on your country and the regulation on it. Suppose the government in your country has regulated cryptocurrencies including Bitcoin. In that case, they will have some laws about the taxes and stuff regarding Bitcoin and other cryptocurrency transactions. Still, if they don't have any regulations or any law against or about cryptocurrencies, I don't think you need to declare anything or pay taxes on your transactions because it isn't necessary.

I recently read somewhere that Biden wants to charge a 40% tax on Bitcoin transactions or it was only for miners, I don't remember it well but it was something related to taxes. So yeah, it depends on a government and their rules and laws that they have created regarding cryptocurrencies within the country.

You might need to pay tax when you are transacting Bitcoin but that does not apply in all regions. There are some regions when you would have to use Bitcoin without any tax payments. Tax is only enforced by the government and their are so regions that taxes in Bitcoin is not yet enforced. I have been using Bitcoin and making transactions without any tax payments and that is how it was meant to be nit for investors that are holding Bitcoin to be paying tax on every transactions they are making.

Hey, so you do have to pay taxes on your income but it does depend on your country. If you live in the U.S. you will have to pay capital gains tax. That said, there are some ways in which you can reduce the amount of tax you have to pay or even bypass it legally. You can read about them here: https://r100k.com/blog/how-to-avoid-cgt-on-cryptocurrency

Hey, my bad. My intention is not to recommend a medium by which the OP could use to easily invade tax. Tax invasion is a criminal offence in my country and could lead to prison terms depending on the amount and techniques adopted in the invasion. The government also needs tax to provide the basic needs of the people. I was only answering his question and had no intention to encourage him to commit a crime. 


It is becoming very difficult to dictate these cheats just by reading the texts. This is because they would combine AI-generated text with human-generated text. I wonder why people are too lazy to think and want to always cut corners. For me, it will take more time to use these chatbots to cheat than to develop natural content. 

GPTZero -> We are highly confident this text was ai generated - 91%
ZeroGPT -> Your Text is AI/GPT Generated 100%
CopyLeaks -> AI Content Detected

I didn't suspect it at first, but checking the detectors mentioned above, it seems that the OP is one of those who completely rely on AI - of course, this is about the fact that most of his post is just c/p of what he got as a response.

As long as your country doesn't regulate Bitcoin transactions or doesn't consider it as asset class, you should not worry about the taxes at all. I know that in some parts of the world you'll have to pay taxes if you mine Bitcoin but in some countries you don't even have to worry about any kind of taxes because most of the governments don't even care about crypto currency transactions and you won't get any issue even if you don't pay taxes.

It's not an easy task for a country to look for each Bitcoin wallet and transactions and that's why I don't think that users have to pay taxes for the transactions that they make. I have personally never paid any tax for Bitcoin transactions because in region where I live, no one cares much about Bitcoin transactions at all. I recommend you to avoid asking ChatGpt about such questions, that AI is pretty useless and can't give you proper answers at all.