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Topic: Taxes - page 3. (Read 10420 times)

sr. member
Activity: 434
Merit: 251
Every saint has a past. Every sinner has a future.
January 15, 2011, 11:37:34 AM
#8
I am going to open an on-line store with wooden toys shortly, accepting bitcoin only. I am going to do it as a natural person, without registering any company.

I would say the tax issue really depends on the country one lives in, for example in Ireland you can earn up to 4000 Euro without declaring it as income - so even if Bitcoins were taxable I will be okay for a while.

Quote
Barter is generally considered a taxable transaction.  the government is going to want their cut.

I have a question regarding this, actually: if barter was illegal somewhere, would running a shop itself be illegal - or would they have to prove to you that you actually exchanged something for bitcoins to get into you? For instance, if you advertise that you can sell stuff for bitcoin, can they do something to you for advertising itself - or do you have to catch you doing it? (keeping in mind Bitcoin accounts are anynomous it would be damn hard to prove that you actually sold something, unless they arranged a fake sale and pretended being your customer)
hero member
Activity: 938
Merit: 500
CryptoTalk.Org - Get Paid for every Post!
January 15, 2011, 07:47:47 AM
#7

I don't know much about US tax code, but my guess is that you should pay taxes only if you ever sell your earned bitcoins into US dollars.


Barter is generally considered a taxable transaction.  the government is going to want their cut.

However for small, not terribly trackable transaction you don't need to worry.

If you are setting up a business, I would suggest speaking with a tax professional.
legendary
Activity: 1246
Merit: 1016
Strength in numbers
January 15, 2011, 06:18:03 AM
#6
Don't pay taxes!  That money is used to support the government!

No kidding, do you know what those deviants do?
sr. member
Activity: 434
Merit: 252
youtube.com/ericfontainejazz now accepts bitcoin
January 15, 2011, 04:58:35 AM
#5
Don't pay taxes!  That money is used to support the government!
legendary
Activity: 1288
Merit: 1080
January 15, 2011, 04:36:03 AM
#4

I don't know much about US tax code, but my guess is that you should pay taxes only if you ever sell your earned bitcoins into US dollars.
legendary
Activity: 860
Merit: 1026
January 15, 2011, 04:20:49 AM
#3
If it's not recognized as a currency, it should work like an exchange (one commodity for another one) and afaik exchanges aren't taxable,
but I'm not a business man so better wait for some more answers.
legendary
Activity: 2506
Merit: 1010
January 15, 2011, 04:19:16 AM
#2
newbie
Activity: 5
Merit: 0
January 15, 2011, 04:01:18 AM
#1
I would like to start selling things in exchange for bitcoins. The problem is that I live in California, and we have a sales tax here. I was wondering if anybody knew how to deal with that. (If the government doesn't yet recognize Bitcoins as currency, do I still have to pay taxes to them for sales that I make?)
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