Topic: Taxes on crypto (Read 586 times)
every country has different rules and tax rates. some jurisdictions have no capital gains tax at all. for instance, residents of Puerto Rico legally pay zero capital gains tax. (although if you move there and then realize past gains, there is a 5% tax during your few years of residency)
Ecли ecть cтpaнa, гдe кpиптoвaлютa являeтcя зaкoннoй, тo кaкoй нaлoг мы дoлжны плaтить пpaвитeльcтвy? Кpoмe тoгo, кaк пpaвитeльcтвo мoжeт oтcлeживaть нaши тpaнзaкции?
What about those of you who dont even cash out? I know you have to record it as well but it does suck when you dont cash out and have to record transactions.
If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
If in countries that accept Bitcoin, you will definitely have to pay taxes, the simplest way they can follow your transactions is KYC, or a proposed default amount ... those are the What do I think If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
Herein my country crypto is legit, crypto currency holder's are have an freedom to convert crypto into fit or vice versa using local online wallet. But I have nothing idea how government collect taxes from the new form of money. But one thing I will sure the owner of online wallet are paying taxes.
The government can do it because no one can go through the crypto Unless using real money. In the market, you must go to use real dollars at any time. Then you will feel the need for a bank. And the bank will deal with you without any tax? Of course not. On the other hand, KYC is the best tool for tracking.
Taxes will depend upon the regulation policy of every country in which some countries are free of tax like France but in federal states, If you hold bitcoin for more than one year, you pay long-term capital gains when you sell. As for federal taxes, that means you pay a 15% tax on any gains, unless you make a lot of money (more than $479,000 (for married couples) or $425,800 (for individuals)), in which case you pay 20%.
If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
If it is already legally recognized in a country, it will be ensured that regulations will be made regarding crypto, so that the state can take tax legally because it is regulated by laws. if the regulation has been established, it will still be easy to collect taxes from crypto transactions. for example when exchanging with fiat and transferred through bank accounts, it can be directly taxed.
- Profit made on mining.
- Profit made on trading.
- Profit made on campaigns.
- Profit made on purchase+hold+sell.
- Profit made on trading.
- Profit made on campaigns.
- Profit made on purchase+hold+sell.
If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
Depending on the country's regulations, there are also some places which has a legality of bitcoin but doeant require any taxes to pay. Bitcoin taxes can be classified as income or property depending on its approach and nature. Consult your local taxation for further accurate details.
If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
If it is already legally recognized in a country, it will be ensured that regulations will be made regarding crypto, so that the state can take tax legally because it is regulated by laws. if the regulation has been established, it will still be easy to collect taxes from crypto transactions. for example when exchanging with fiat and transferred through bank accounts, it can be directly taxed.
Curious but can anyone who day trades with bitcoin in the US tell me how much in taxes you pay in terms of percentage in the US?
Example say you located in new york for example and daytrade btc and altcoins. I read that you pay like 35% on short term capital gains. So if someone makes around $50,000 a year trading btc and altcoins and daytrade, expect to pay around $17,500? That is a lot if true.
Example say you located in new york for example and daytrade btc and altcoins. I read that you pay like 35% on short term capital gains. So if someone makes around $50,000 a year trading btc and altcoins and daytrade, expect to pay around $17,500? That is a lot if true.
If you do the transactions with the KYC verified exchanges to convert your cryptocurrencies into cash, then you need to pay the taxation and government also will have the access for the transaction and they can able to track it easily.
If you convert the bitcoin or altcoins for cash in hand, then they cannot do the tracking.
Not always the case on exchanges that have KYC, it's still depends on the country because there are some that doesn't charge tax on cryptocurrency. If you convert the bitcoin or altcoins for cash in hand, then they cannot do the tracking.
Also trading your cryptocurrencies to another person instead of an exchange doesn't mean you've avoided taxes. You still need to report them because if not eventually they'll find out and it's not good when those numbers add up.
If you convert the bitcoin or altcoins for cash in hand, then they cannot do the tracking.
If you're in the US and trade for cash at meaningful volumes or as a business, be very careful. Law enforcement agents have infiltrated P2P trading platforms. They have arrested many people at this point for unlicensed money transmission just for trading on Localbitcoins. The IRS has been involved in some of the larger cases too.
Better to do it through multiple venues (not just Localbitcoins) and in lower amounts not approaching the $10,000 CTR threshold to stay off their radar.
If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
If you do the transactions with the KYC verified exchanges to convert your cryptocurrencies into cash, then you need to pay the taxation and government also will have the access for the transaction and they can able to track it easily.
If you convert the bitcoin or altcoins for cash in hand, then they cannot do the tracking.
If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
If it is already legally recognized in a country, it will be ensured that regulations will be made regarding crypto, so that the state can take tax legally because it is regulated by laws. if the regulation has been established, it will still be easy to collect taxes from crypto transactions. for example when exchanging with fiat and transferred through bank accounts, it can be directly taxed. If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
There are lot of countries that Bitcoin is declared legal and Bitcoin taxes will depend upon the regulation that imposed by every government as there are countries that declared Bitcoin is free of tax like France and Japan. Here are the link for your reference of Bitcoin status on every country. https://en.m.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
Decentralized currency like bitcoin is separated with centralized fiat money economic financial regulation, and as people continued to patronized digital currency I think their freedom in using virtual money has lot of advantage compared to traditional type fiat money. The link provision here could help those readers who has no interest with searching google or any other informative sites like Wikipedia. Government cannot stop bitcoin or hinder people from using or spending it, because of those reasons and I think regulation could only be applicable in order to be safe for the country.
Also, how can the government track our transactions?
That's what KYCs are for. Ever wonder why exchanges are asking for your KYC? It's really because for the government to track you and all the things that go in that exchange. Some governments even go as far as requiring the exchange to alert them when an unusual amount of money is going in and out of the exchange, they are also requiring them to send some random transactions from random users to see on how they earn (lose) money. Aside from that you are also in charge of documenting every gain/loss you have from every trade so that you yourself know how much you will pay depending on what tax rate you are in.
If there is a country where cryptocurrency is legal how much is the tax that we have to pay to the government? Also, how can the government track our transactions?
There are lot of countries that Bitcoin is declared legal and Bitcoin taxes will depend upon the regulation that imposed by every government as there are countries that declared Bitcoin is free of tax like France and Japan. Here are the link for your reference of Bitcoin status on every country. https://en.m.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
Contrary to popular belief, most countries in the world are neutral to BTC or deem BTC as legal.
Of course, you need to fulfill your taxation obligations as a result. This solely depends on your jurisdiction, and you'll have clear info listed out for you in your country's tax agency. But the thing that is generally accepted standard essentially is that BTC income will still be filed as income, and you're likely to be expected to pay CGT.
They can only really track any transaction with precision if it's been through a regulated exchange that actively reports back to them. That said though, I think that in the future they'll come up with more methods of tracing, though there will always be limitations due to the pseudo-anonymous nature of addresses.
Of course, you need to fulfill your taxation obligations as a result. This solely depends on your jurisdiction, and you'll have clear info listed out for you in your country's tax agency. But the thing that is generally accepted standard essentially is that BTC income will still be filed as income, and you're likely to be expected to pay CGT.
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Also, how can the government track our transactions?
They can only really track any transaction with precision if it's been through a regulated exchange that actively reports back to them. That said though, I think that in the future they'll come up with more methods of tracing, though there will always be limitations due to the pseudo-anonymous nature of addresses.
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