Suddenly I'm curious, do I need to pay taxes on Bitcoin income? - page 2.

Z-tight

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Quote from: Alphakilo on April 30, 2024, 10:39:48 AM

Another instance is even if there is an agreement between me and my boss to pay me in crypto because of there are no crypto tax laws, I won't pay any crypto tax. No tax evasion here and therefore, no crime.

It is easy to understand that i was talking about countries that have crypto tax law, obviously if a country does not tax crypto, then you are not liable to pay any tax on profits made from your coins.

Quote from: Alphakilo on April 30, 2024, 10:39:48 AM

I live in a country where the government of the day had banned crypto transactions and are doing all in their power to stop people from using bitcoin or other crypto currencies discreetly. In this instance, whatever gain there is on crypto will not be taxed, it will not be considered tax evasion and therefore not a crime.

If you live in such a country, then it is not a case of crypto tax because there is obviously none, but the crime is in using crypto. If your government truly banned crypto like you say, then using it is the crime.

Zadicar

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

I asked chatgpt, and it answered that Bitcoin transactions are generally subject to tax, just like other forms of asset transactions. Tax requirements may vary depending on the laws and regulations of the country where you are located, but in general, the following situations may require taxation:
Earning profits: If you earn profits through the sale or investment of Bitcoin, these profits may be considered capital gains and are subject to tax. Salaries and wages: If you pay or receive wages in Bitcoin, this may be considered ordinary income and is subject to tax. Mining income: If you receive income from Bitcoin mining, these income may be subject to tax. Currency exchange: If you use Bitcoin to purchase goods or services, you may need to pay the corresponding consumption tax according to the laws of the country.

You would really be needing to pay up taxes specially if you are getting that Bitcoin pay from your day job or simply when your boss is really that giving out that kind of Bitcoin form salary on which deductions would really be taken but if we do speak about that side online jobs that you are getting at then i highly could tell that almost 100% wouldnt really be tending to make out deduction of their earnings.
Majority would really be tending to evade tax as much as possible despite of its main purpose on which people cant really just that easily trust up on how the government would really be using it.
This is why most will really be having that consideration that they will really be avoiding it as much as possible on which its a common approach i would say. If there's no way that government
cant be able to track you down then you would really be hiding it as much as possible.

Oasisman

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

I asked chatgpt, and it answered that Bitcoin transactions are generally subject to tax, just like other forms of asset transactions. Tax requirements may vary depending on the laws and regulations of the country where you are located, but in general, the following situations may require taxation:
Earning profits: If you earn profits through the sale or investment of Bitcoin, these profits may be considered capital gains and are subject to tax. Salaries and wages: If you pay or receive wages in Bitcoin, this may be considered ordinary income and is subject to tax. Mining income: If you receive income from Bitcoin mining, these income may be subject to tax. Currency exchange: If you use Bitcoin to purchase goods or services, you may need to pay the corresponding consumption tax according to the laws of the country.

I'm curious, do I need to pay taxes on Bitcoin income?

Basically, YES. I don't know about the other country but most countries including here impose taxes on everything you are earning for, as long as it qualifies to a certain income range criteria, but majority of the investors are not a minimum wage earner so it is almost automatic that the government are after the tax from the profit of any form of investments.
Tax is the biggest scam the humanity ever has, it's just funny the government are requiring you to work hard so they can get good amount of tax out of your hard earned money. So, don't get curious or confused on when to put taxes on everything generally, because again the government will impose taxes in everything you own that generates profit.
There are taxes in everything we buy in the market no matter how small the value is, how much more with bitcoin? when they hear that word, it will give them a ring in the ears with the thoughts of "hey, this person is probably very reach as he owned bitcoin" LOL.

BADecker

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In the US, if you are not an IRS taxpayer, then you don't have to pay IRS taxes on anything, even Bitcoin.

How do you become a taxpayer? By signing any IRS form. Note that the Form W-4 with your employer is an IRS form.

How do you get out of being a taxpayer? Notice the IRS that you have rescinded your signature off of all of the IRS forms you have ever signed.

How do you remain not a taxpayer when you need to sign some of their forms at some times? Note that you need to sign the Form W-4 with your employer, or he may not hire you. If he already hired you first, it is illegal for him to fire you for IRS related reasons. But he can make your life difficult on the job.

If you need to file some kind of an IRS form, on all - or as many as possible - lines, place "n-a." Then sign the form "non-assumpsit, your signature. "Non-assumpsit" means 'no contract' in legal language, but look it up.

The difficult part is remaining outside of assumed contracts when IRS agents start talking or writing to you.

Yes. You became a taxpayer by accidental agreement with the IRS. IRS taxes are totally voluntary. By contract law, if you volunteered in, you can volunteer out.

Cool

OgNasty

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CoinDesk is reporting that Roger Ver is being charged with tax fraud. This will be an interesting case to watch as I’m sure the government would love to come after anyone who used Bitcoin early on for whatever they can. Tax fraud is pretty serious though and would mean he knowingly lied on his returns. This will be a case to watch for sure.

Hamza2424

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

I asked chatgpt, and it answered that Bitcoin transactions are generally subject to tax, just like other forms of asset transactions. Tax requirements may vary depending on the laws and regulations of the country where you are located, but in general, the following situations may require taxation:
Earning profits: If you earn profits through the sale or investment of Bitcoin, these profits may be considered capital gains and are subject to tax. Salaries and wages: If you pay or receive wages in Bitcoin, this may be considered ordinary income and is subject to tax. Mining income: If you receive income from Bitcoin mining, these income may be subject to tax. Currency exchange: If you use Bitcoin to purchase goods or services, you may need to pay the corresponding consumption tax according to the laws of the country.

Hmm, I'm curious about how they are going to do things out there like how can they calculate the income generated in the crypto market, hmm without the OTC deals with the centralized exchanges they are unable to charge taxes on the crypto income. People can bypass it as well using P2P and other services like that. Anyway, there's nothing to worry about for me as in my country it's never gonna be discussed that's how there is a need to plan the policy for the Bitcoin standard because we currently buy into making statements about establishment and government, who knows who is controlling the government and so what to fear haha. just a political joke never mind.

B2Z

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

I asked chatgpt, and it answered that Bitcoin transactions are generally subject to tax, just like other forms of asset transactions. Tax requirements may vary depending on the laws and regulations of the country where you are located, but in general, the following situations may require taxation:
Earning profits: If you earn profits through the sale or investment of Bitcoin, these profits may be considered capital gains and are subject to tax. Salaries and wages: If you pay or receive wages in Bitcoin, this may be considered ordinary income and is subject to tax. Mining income: If you receive income from Bitcoin mining, these income may be subject to tax. Currency exchange: If you use Bitcoin to purchase goods or services, you may need to pay the corresponding consumption tax according to the laws of the country.

Regarding paying bitcoin tax, I would say that if the government of the country you live in has legalized bitcoin, you must pay tax, and the government of the country that has not legalized bitcoin, or the government of the country where bitcoin is illegal, will never tax bitcoin. Regarding Bitcoin Tax Basically if the government has given bitcoin to Handet Persen legalization under the government then you must pay bitcoin tax.

wallet4bitcoin

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Most countries have started incorporating taxes to bitcoin and other cryptocurrency holdings, I think it is ideal to pay your tax if it gets to that point. For instance, Philippines has digital assets wallet in their banking applications, if for any reason you get to receive money through those applications, you have to pay taxes on them cos it is recorded.

GideonGono

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I think it depends on your country and how would they even know your crypto asset or earning if you wouldn't declare it?
It would be hard for them to tax your crypto earning specially if you wouldn't declare all your wallets, and not to mention that there are some airdrops by just holding some crypto on your wallet.

Nrcewker

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It actually depends on the country you currently living in. If they have legalised Bitcoins and are imposing tax on it, then yes you have to pay the tax in order to make the Bitcoins into cash and into your bank account. If you used a casino which is regulated by the government, then you are bound to pay the taxes. You can also try P2P deals and can avoid paying taxes. But yes, this takes too much hassle and you need to be extra careful while doing P2P deals.

dzungmobile

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Quote from: Plaguedeath on April 30, 2024, 08:55:46 AM

Quote from: tranthidung on April 30, 2024, 08:33:05 AM

Bitcoin is not altcoins and there is no tax charged by the project team for any transaction.

It's not tax, but gas fees.

No, I did not talk about tax from government but tax (sale tax) from cryptocurrency projects. It's not gas and on chain transaction fee, it's sale tax.

Sale tax can be zero, low or high depends on the altcoin developer team and it's common applied with projects with high inflationary tokenomics like GameFi, Metaverse projects.

With smart contracts, altcoin developers are free to set sale tax if they want.

avikz

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

I asked chatgpt, and it answered that Bitcoin transactions are generally subject to tax, just like other forms of asset transactions. Tax requirements may vary depending on the laws and regulations of the country where you are located, but in general, the following situations may require taxation:
Earning profits: If you earn profits through the sale or investment of Bitcoin, these profits may be considered capital gains and are subject to tax. Salaries and wages: If you pay or receive wages in Bitcoin, this may be considered ordinary income and is subject to tax. Mining income: If you receive income from Bitcoin mining, these income may be subject to tax. Currency exchange: If you use Bitcoin to purchase goods or services, you may need to pay the corresponding consumption tax according to the laws of the country.

It really depends on your country or your nationality. If I speak from the perspective of my country, I am liable to pay taxes on my Bitcoin income. I have been doing it since 2016.

Check your local law around cryptocurrency. Possibly speak to a lawyer who knows about it to get the best guidance. But in majority of the countries, Bitcoin income is considered as income and it is taxed ccordingly.

Odohu

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It depends on your country because it is not every country that taxes crypto income. In my country for instance, there is no tax on crypto income and the only money we pay is stamp duty which is compulsory for every credit that any account receives irrespective of the source of the fund.

If there is crypto tax law in your country, by all means try and pay because tax evasion is a very serious offence and bailable in most countries. Unless you are prepared to face the wrath of the law, you can refrain from paying your crypto income taxes.

Alphakilo

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Quote from: Z-tight on April 30, 2024, 08:31:44 AM

P2p platforms should not be seen as a way to evade taxes, if you live in a country where crypto is taxed, then you ought to pay your tax. Centralized exchanges and services makes it easy for the government to tax people based on capital gains, when they convert their coins to fiat. However, even if you use p2p platforms to trade your coins to fiat, you are still expected to declare your profit gained to the government, i know a lot of do not do it, but that is tax evasion and it is a crime.

Crypto tax laws are differs from country to country. In some countries, it is a crime to not pay crypto taxes while in some other countries, there is no law on crypto taxes. I live in a country where the government of the day had banned crypto transactions and are doing all in their power to stop people from using bitcoin or other crypto currencies discreetly. In this instance, whatever gain there is on crypto will not be taxed, it will not be considered tax evasion and therefore not a crime.

Another instance is even if there is an agreement between me and my boss to pay me in crypto because of there are no crypto tax laws, I won't pay any crypto tax. No tax evasion here and therefore, no crime.

YOSHIE

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

Suddenly I'm curious, do I need to pay taxes on Bitcoin income?

Many people avoid taxation, especially tax on Bitcoin. OP, whether or not tax is paid depends on the laws in your country, which have been regulated by the government in your country.
For example:
If the tax regulations in your country are mandatory for crypto users, of course you have to obey them and pay, on the other hand, the tax regulations are not strict, it's all up to you to think to yourself.

Generally, taxes are applied to crypto exchanges, users pay taxes directly and are deducted by the exchange, this way you don't need to pay individually at the tax office, the exchange has deducted a percentage of your crypto transaction tax.
However, if your country applies taxes to individuals for crypto users, there may be sanctions if they are not paid. Pay crypto taxes depending on the tax laws in force in your country.

TheUltraElite

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Follow what your country's taxation policy on bitcoin is. Most countries have taxes on Capital gains which incurs when you sell an article and your have some gains from that trade. If you need help, get in touch with a chartered accountant and they can help your file your returns. Dont ignore taxes because they will hunt you after years for unpaid taxes.

Some countries have exuberant taxes on bitcoin, I wish these governments would improve their outlook for once.

kryptqnick

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ChatGPT is correct that whether a particular person has to pay taxes or not depends on the jurisdiction and legislation that exists there. Some countries have an unclear position, some have progressive taxation (with or without a tax-free annual amount), and some have a tax-free position. And yes, there are different kinds of taxes which may or may not need to be paid, which also depends on jurisdiction. Another thing to consider is whether the laws are enforced or exist only on paper, and what kind of punishment one can face for violating the law.

Winterfrost

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

I asked chatgpt, and it answered that Bitcoin transactions are generally subject to tax, just like other forms of asset transactions. Tax requirements may vary depending on the laws and regulations of the country where you are located, but in general, the following situations may require taxation:
Earning profits: If you earn profits through the sale or investment of Bitcoin, these profits may be considered capital gains and are subject to tax. Salaries and wages: If you pay or receive wages in Bitcoin, this may be considered ordinary income and is subject to tax. Mining income: If you receive income from Bitcoin mining, these income may be subject to tax. Currency exchange: If you use Bitcoin to purchase goods or services, you may need to pay the corresponding consumption tax according to the laws of the country.

it depends on your region and whether or not you're converting your Bitcoin from your wallet into fiat as your income that's in the the commercial banking systems. Most Bitcoin holders don't pay taxes on there Bitcoin most expecially for the ones that are long term holders that wouldn't want to even put there profit in a banking system that's taxable.

But as a citizen of country, it's necessary you pay taxes from the proceeds of your profit either from the profit you've gotten from Bitcoin investments or the profit from your business even if you use Bitcoin as just a mode of payment. Taxes is what helps a nation grow in the provision of the basic amenities and structure you find around you and so regardless of the possibility that you don't do civil service jobs and only made most of your profit from investing into Bitcoin, it's still necessary to pay up your tax.

Muchiratsky

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Probably depends on where you are. Some countries on paper will require you to pay taxes for any income you get regardless of where it's from. But they really won't take the time to look for each and everyone's source of income, so it would be up to you if you'll declare and pay taxes on your own. I know a lot of people who don't pay taxes and they aren't even in the crypto industry. How much more if you're getting paid in crypto. Again it's going to be up to you if you're willing to declare and pay taxes. I personally wouldn't want to considering how taxes are being used by people in power.

And yeah, I also wouldn't trust AI for accuracy when it comes to tax questions.

Aanuoluwatofunmi

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Quote from: shanhaigamefi on April 30, 2024, 03:02:03 AM

If you use Bitcoin to purchase goods or services, you may need to pay the corresponding consumption tax according to the laws of the country.

Paying of task is what we mostly do in cryptocurrency because we are making use of a centralized exchange, but if we had all been decentralized and there is no trace of how our identity could be verified, then we may have the opportunity of waving the payment of tax, of course we should know that the government wouldn't take it easy on exchanges and other centralized means of acquiring bitcoin, not to talk of using their centralized exchange p2p service for fiat currency, we still have to offer a little amount on taxation upon every performed transactions.

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