It all boils down to the country you are in
- When Satoshi mined those coins, they were worthless and there probably is no tax liability attached to that event.
- Some jurisdictions have a wealth / asset tax, apart from income tax. So if the total wealth of an individual, exceeds a threshold amount, there could be a wealth tax involved.
- On the sale / spending of bitcoins (barter transaction), there could be capital gains tax involved.
Topic: Tax & Hoarded / Hodl Coins - page 2. (Read 1583 times)
You have to report your BTC holdings if they pass the X limit (depending on country).
Do you think the government wouldn't love to tax someone holding 100+ BTC? of course they do.
But how can they even know you own 100+ BTC? they can't... so mix your coins before doing anything fiat related.
Do you think the government wouldn't love to tax someone holding 100+ BTC? of course they do.
But how can they even know you own 100+ BTC? they can't... so mix your coins before doing anything fiat related.
In my country, I only get taxed on something where I have received financial gain.
It would be good to know what country you live in.
In some countries BTC gains are tax-free and in some countries it's tax-free if you owned them for more than one year.
I think it's not a real gain if you don't convert it, since people don't pay tax on other asset gains (stocks, currencies or commodities) every year without selling them (you still have the risk of the asset price going down)
This is not financial or legal advice. Talk to a tax consultant if you made a significant amount of money.
If Bitcoin is seen as a asset, would we not be able to subtract depreciation or losses from it? I think it's more a commodity and we should be tax'ed in the same way that all other commodities are tax'ed.
The Tax man SHOULD only be allowed to take a piece of the profit or they should take VAT from every Bitcoin purchase, like they do in Estonia.
careful there !!
if you never exchanged your coins with anything(barter included, so selling directly without dumping for fiat first) you are not taxable not matter the amount of coins you hold
onther other hand if you sell and convert for fiat, you must report you earning for that fiscal year to your taxman if the earning is big enough, depends on where you live
but anyway i will not delcare anything if bitcoin isn't regulated in your zone
onther other hand if you sell and convert for fiat, you must report you earning for that fiscal year to your taxman if the earning is big enough, depends on where you live
but anyway i will not delcare anything if bitcoin isn't regulated in your zone
In my country, I only get taxed on something where I have received financial gain.
Let's say, I work online and I get paid, I have to declare that income and I get taxed on it... and when I buy something and I sell it for a profit, I pay capital gains tax on it, for the profit portion on it.
Now let's take Satoshi's 1 000 000 coins as a example. {He/she has not received ANY financial gain from it, but he/she has 1 000 000 coins with a crazy value}
If he/she lost the private key, or if he/she simply never sell them, could he/she be liable for the financial value of those coins regarding the tax? {That is to say, if he/she come forward}
Let's say, he/she spends only 1000 coins, would he/she be taxed on the profit part of those 1000 coins only?
We pay monthly municiple property tax, based on the size and value of the plot and house we own... could the IRS not make the same ruling for Bitcoin owners?
Let's see what you think...
Let's say, I work online and I get paid, I have to declare that income and I get taxed on it... and when I buy something and I sell it for a profit, I pay capital gains tax on it, for the profit portion on it.
Now let's take Satoshi's 1 000 000 coins as a example. {He/she has not received ANY financial gain from it, but he/she has 1 000 000 coins with a crazy value}
If he/she lost the private key, or if he/she simply never sell them, could he/she be liable for the financial value of those coins regarding the tax? {That is to say, if he/she come forward}
Let's say, he/she spends only 1000 coins, would he/she be taxed on the profit part of those 1000 coins only?
We pay monthly municiple property tax, based on the size and value of the plot and house we own... could the IRS not make the same ruling for Bitcoin owners?
Let's see what you think...
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