Suddenly I'm curious, do I need to pay taxes on Bitcoin income? - page 3.

Plaguedeath

hero member

Activity: 854

Merit: 663

Quote from: Sunderland on April 30, 2024, 05:39:57 AM

At the local exchange where I usually exchange crypto to fiat, every transaction will be immediately taxed, but at the end of the year I still have to report it again.
And if I dont that, it will be subject to capital gains tax based on the money that goes into my bank account.

Wait, why there are double tax? Huh

I thought it's either you get taxed immediately in your local exchange or you will be taxed when you report your capital gains. Perhaps you refer to wealth tax? I'm just guessing since I'm not exactly sure why you could get taxed twice.

Quote from: Upgrade00 on April 30, 2024, 04:24:12 AM

What can be taxed is when you liquidate your Bitcoin to fiat, taking profits.

Converting Bitcoin to altcoins or vice versa also subjected to tax.

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.

tranthidung

legendary

Activity: 2310

Merit: 4085

Farewell o_e_l_e_o

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:

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

With Bitcoin, you only have to pay transaction fee and you will only pay tax if you sell your bitcoins. If you only move your bitcoin from one wallet to another wallet, who will tax you?

Because you don't get any profit at all, you don't sell your bitcoin at any price.

Z-tight

hero member

Activity: 994

Merit: 1089

Quote from: Zlantann on April 30, 2024, 07:41:01 AM

However, if you use a decentralized P2P channel to carry out your transaction, it might not be subjected to tax. Using a centralized platform like exchanges or banks might expose you to taxes.

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.

Zlantann

legendary

Activity: 1050

Merit: 1100

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

I asked chatbot, and it answered that Bitcoin transactions are generally subject to tax, just like other forms of asset transactions.

You should have asked the chatbot about the crypto tax policies in your country. However, if you use a decentralized P2P channel to carry out your transaction, it might not be subjected to tax. Using a centralized platform like exchanges or banks might expose you to taxes.

Quote from: Upgrade00 on April 30, 2024, 04:24:12 AM

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,

Bitcoin transactions are not subject to tax, they are pseudoanonymous, meaning they can't be traced to any individual. Just a signature from one address sending coins to another address. What can be taxed is when you liquidate your Bitcoin to fiat, taking profits.

OP didn't construct his question properly. I assume he wants to ask if his income from Bitcoin will be subject to taxes. Bitcoin transactions is only subject to transaction fees and nobody pays any form of tax.

I hope this post was not also written by chatgpt?

peter0425

sr. member

Activity: 2618

Merit: 439

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,

That is correct and I do not know how other countries implement their laws about taxation but usually even if there is no specific clause for cryptocurrencies taxation there should be at least a place for it to enter.

For example in my country any profit from crypto shall be subjected under capital gains or those assets that you have sold for more than you bought it which gives you profit. I just don’t know how taxation will work if cryptocurrency is not legal or it’s banned in your country.

traderethereum

hero member

Activity: 2870

Merit: 574

Vave.com - Crypto Casino

We don't know what the tax requirements are in your country and it's best to ask your regulator to get the right answer. Maybe in other countries, we will only be taxed if we send money from the exchange to a bank account.
But there may be taxes that will be imposed on other crypto users which will be different in each country. And it will depend on each government because they will adapt it to the conditions and situations that exist in their country.
We should follow the regulations set by the government so that we can be comfortable in using crypto.

EarnOnVictor

hero member

Activity: 826

Merit: 641

Leading Crypto Sports Betting & Casino Platform

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.

Oh yes, you have to pay your taxes bro if your country demands it and I always encourage people to pay it and not try to play smart in the name of Bitcoin. You may only get covered when it is about the non-custodial approaches, but when it is a custodial and centralised arrangement, you will be exposed. It could even be tough for the government to know if the centralised system is not registered in your country, but in the long run, what if you are a person of interest and you are later exposed? This could be sanctionable or jailable in many country's laws. The thing is that different countries have their tax laws as you stated but I've never seen a country that will exempt you from paying tax on investments, which makes it general.

However, if it is a gain from futures trading, it is still arguably not taxable in some countries, which makes the whole thing complicated. Because if you buy and hold your Bitcoin and also trade it in the futures markets, how do they differentiate the income when they are lumped together? This is often possible if the centralised company is registered in your country and cooperates with the government, they will be able to issue the record on that to the government to know which income to tax and not to tax.

Sunderland

sr. member

Activity: 1439

Merit: 380

Bitcoin Casino Est. 2013

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, - snip -

Yep, the tax regulations in each country are definitely different and AI will only provide general answers based on data from Google.
I doubt the AI will be able to provide the specific answers we need, for example:
At the local exchange where I usually exchange crypto to fiat, every transaction will be immediately taxed, but at the end of the year I still have to report it again.
And if I dont that, it will be subject to capital gains tax based on the money that goes into my bank account.

Lucius

legendary

Activity: 3234

Merit: 5637

Blackjack.fun-Free Raffle-Join&Win $50🎲

Quote from: Yamane_Keto on April 30, 2024, 05:02:36 AM

Do not ask chatgpt about your tax form, consult an accountant or tax professional as tax laws vary depending on your country, state and federal laws.
~snip~

That would be a logical step considering that the laws are not the same for everyone, and in some countries cryptocurrencies are not recognized at all, therefore you cannot pay tax on something that practically does not exist in your country. I think people like the OP have doubts about such things, but they don't want to consult with their tax offices for the reason that they could suggest that they own cryptocurrencies at all - which can certainly be risky in some countries.

I would describe the whole tax thing in the following way - if you don't trade through CEXs and it's mostly about smaller amounts that pass under the radar, why bother with all that paperwork. If you are a slightly bigger player, have KYC on CEXs, make bigger profits and buy houses, apartments, cars from that, then it would be logical to pay taxes - unless you want someone to take it all away from you one day.

Wiwo

hero member

Activity: 1022

Merit: 667

Top Crypto Casino

Wait a minute how is bitcoin income or transactions subject to tax?

This is a wrong assumptions because bitcoin is decentralised and not all it transactions pass through the centralized system so 8t has nothing to do with tax since government doesn't control the flow of bitcoin so any one earning profits from their bitcoin holdings as an asset will no be subjected to taxation unless you exchange your Bitcoin to fiat anf use the money to pay for goods and services that way you may incure value added tax but anything outside that becomes impossible for the government to collect the tax.

But then bitcoin services such as exchange are subjected to taxation if their are licensed.

Yamane_Keto

hero member

Activity: 406

Merit: 443

Do not ask chatgpt about your tax form, consult an accountant or tax professional as tax laws vary depending on your country, state and federal laws.
US IRS tax information about cryptocurrencies https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions
In short, every sale that generates profits is subject to taxes.

ultrloa

legendary

Activity: 2758

Merit: 1228

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.

If there's some law created about people been oblige to pay taxes on their online income then you supposed to follow the law since it might be bad for you if government will find out that you are not paying your obligation to them since maybe they will sue you for tax evasion especially if there's someone will report you to authorities. So to avoid getting into trouble regarding on your taxes then better go to the right government institution then ask for certain advice on what is the next action you need to do.

You should be a good citizen to your country and your taxes paid to them will contribute to the growth of your country so don't regret to pay your obligations to government since for sure those projects will be created by help of taxes paid by people can help a lot of people especially if your government is not corrupt and aim for the growth of your country.

CryptoBuds

legendary

Activity: 2100

Merit: 1042

HODL

In theory, you need to pay taxes when investing in bitcoin, but most people using bitcoin don't want to pay taxes and they even use bitcoin to avoid taxes. I've even seen people instructing others to use bitcoin to avoid taxes because of bitcoin's decentralization and anonymity.
But if you are a good citizen and want to contribute to your country's economy, you should comply and pay taxes according to government regulations. And I think, there will not be too many taxpayers here so no one will be able to give you accurate advice, and I am also among them.

Upgrade00

legendary

Activity: 2114

Merit: 2248

Playgram - The Telegram Casino

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,

Bitcoin transactions are not subject to tax, they are pseudoanonymous, meaning they can't be traced to any individual. Just a signature from one address sending coins to another address. What can be taxed is when you liquidate your Bitcoin to fiat, taking profits.

You should be aware of the crypto regulation in your country through proper research, before making a purchase.

sunsilk

hero member

Activity: 3038

Merit: 634

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.

So, you have already answered your question on your title and that's why it's needed to do something for the taxes.

Everything that you've gained upon converting your BTC into fiat is considered as income and gain, so therefore you have to declare that to your tax bureau.

If you don't want hassle doing all of the process then just hire someone that works for taxation, an accountant or whoever consultant you want to hire.

shield132

hero member

Activity: 2352

Merit: 905

Metawin.com - Truly the best casino ever

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's never a good idea to ask such questions to ChatGPT. Where you live is a most important part. I personally live in a country where income from foreign countries is not taxed. Crypto incomes also are not taxed. I have never ever paid any tax on any of my income and I have never had a problem. For example, the law requires you to pay taxes if you are self-employed but to be fair, no self-employed person pays taxes in my country, everyone knows that and everyone feels okay about that. So you have to act according to what are the laws and what applies in real life. This is my reality, yours might be different.

aoluain

legendary

Activity: 2436

Merit: 1362

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.

Personally I never ask chatgpt anything, I would rather converse with Humans

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

Tax requirements may vary depending on the laws and regulations of the country where you are located

Exactly, you dont mention which country you are in so its impossible to answer your question in the
thread title accurately.

It depends on your country and its Tax treatment of Bitcoin, I think most EU countries for example treat
Bitcoin "investments" and profits from that as Capital Gains Tax.

There are exceptions to those EU countries like Malta, Portugal and Germany, I think if you are resident
for over 12 months there is minimal to zero Tax on profits from Bitcoin.

AVE5

full member

Activity: 350

Merit: 128

It's okay to be curious to be cleared from your doubts especially when it gets to do with the funds and assets. Op, try to understand that some countries do regulates by implementing their own policies on bitcoin especially if the government is supporting bitcoin in a large variety to be adopted in the country. Maybe the country may have also subjected bitcoin as part of the resource for income revenues.
So every damn transactions would be charged at this course as taxes because it's an registered assets just as the real estates maybe.

I also hope that you don't misunderstood between taxes and transaction fees Op?

retreat

sr. member

Activity: 1106

Merit: 391

Actually, it is your right whether you want to pay tax or not, because not all countries regulate crypto trading so there are exchanges that operate and you can make deposits or withdrawals but you will not be subject to tax from it. In my own country, here the government has just implemented crypto trading regulations, so that people who want to convert their bitcoins to local currency on an exchange will automatically be subject to a 0.1% tax on each trade. It does seem quite a hassle, but due to regulatory issues people eventually get used to it.

Charles-Tim

legendary

Activity: 1512

Merit: 4795

Leading Crypto Sports Betting & Casino Platform

Yes, you need to pay tax from your bitcoin income. If your boss is paying you in bitcoin and not fiat, you still have to pay your tax.

If you mean from the passive earning while you hold bitcoin? Crypto capital gains tax. You will need to read about crypto tax in your country to know about this. There are some countries that have the law already that you have to pay tax of certain percentage from the profit you make from your crypto holding. But that is only when you sell it. If you continue to hold it, no tax.

Topic: Suddenly I'm curious, do I need to pay taxes on Bitcoin income? - page 3. (Read 478 times)