Understanding crypto tax. | Bitcointalksearch.org

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legendary

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Quote from: SuperBitMan on January 21, 2025, 04:07:05 PM

2. If you trade one cryptocurrency for another for example Bitcoin to Solana coin it is taxable.
3. When you use crypto coin to buy goods or services for example using Bitcoin to buy a car, tv, bicycle, etc. It is taxable and the tax is called income tax

It is difficult for me to understand the tax legislation in your interpretation.

If I bought 1 Bitcoin for 100 thousand dollars, and then for this 1 Bitcoin I bought myself a car worth 100 thousand dollars, then what should I pay tax for if I did not receive an additional profit?

BIT-BENDER

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Quote from: btcltcdigger on January 22, 2025, 03:34:32 AM

This info can be obsolete in 24 hours.
I would advise anyone who wants to know about crypto tax, to go to your LOCAL tax attorney and ask around.
What might work for one country or even a region, doesn't have to apply to others.
Also, these tax laws change almost weekly, as more and more crypto money is being flashed, countries are trying to figure out ways to tax you for it

I thought the same thing, not that the OP has been proven wrong but in other to stay according to the law and not to make any mistakes, you need to get information about your taxes (be it crypto-currency related or not) from the right authorities from your location.
And mind you tax law in different locations may have some levels of differences.

CryptopreneurBrainboss

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Quote from: SuperBitMan on January 21, 2025, 04:07:05 PM

This are basically in USA, UK, and some other countries so it will be advise you make research about your country cryptocurrency tax law and policy.

Better you don't assure and do the research to know what you're supposed to pay taxes on and what not to pay taxes on. It shouldn't be difficult for you to figure them out when you go to the right source.

Taxes are more applicable to countries that have legalized Bitcoin or are friendly to the industry as I don't see a point paying taxes when your government are toxic to the industry and looking for ways to bring it down. In this scenario, paying taxes might just implicate you so it's better to stay hidden/anonymous and enjoy your profits.

Income tax when you convert your crypto holdings to fiats is the most common and that shouldn't be neglected to avoid the penalties from the government.

Helena Yu

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Quote from: SuperBitMan on January 21, 2025, 04:07:05 PM

3. When you use crypto coin to buy goods or services for example using Bitcoin to buy a car, tv, bicycle, etc. It is taxable and the tax is called income tax

Source?

You've paid the income tax in number 4, you will not need to pay income tax anymore when you spend Bitcoin.

If you live in a country where Bitcoin isn't legal as legal tender, but the companies accept Bitcoin payment, it means when you pay using Bitcoin, it will convert to fiat, in this case you will need to pay capital gain tax (if the amount you buy Bitcoin is lower than when you spend).

If you live in a country where Bitcoin is legal as legal tender, I think you will not need to pay capital gain tax CMIIW.

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Quote from: SuperBitMan on January 21, 2025, 04:07:05 PM

Now activities that are not taxable are.

When you transfer cryptocurrency to your other wallet account and when you are holding your crypto coin without selling is not taxable.

So the only way to avoid tax is to just not sell our crypto. Well that doable if your holdimg bitcoin and other major crypto in your non custodial wallet.

So what if someone offered you like properties and he agree to exchange that with your crypto holding? Is that considered on point number 3? What if its a underground sale would it count?

Pmalek

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Each country treats bitcoin and crypto transactions differently. For example, converting crypto to fiat is usually a taxable event, but there are countries where you aren't required to pay taxes on such transactions if you are an investor who has held their coins for more than X (insert period). Some examples include Germany, Austria, or Croatia. If you want to be absolutely sure you are doing the right thing from a legal standpoint, you should talk with an experienced accountant or contact your local tax authority.

btcltcdigger

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This info can be obsolete in 24 hours.
I would advise anyone who wants to know about crypto tax, to go to your LOCAL tax attorney and ask around.
What might work for one country or even a region, doesn't have to apply to others.
Also, these tax laws change almost weekly, as more and more crypto money is being flashed, countries are trying to figure out ways to tax you for it

SuperBitMan

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As we decide to invest in cryptocurrency it is important we understand how crypto tax works so as to avoid facing some punishment by law enforcement agency.
There are some crypto transactions that may trigger taxable event and there are also some that may not trigger taxable event, and it is very important we pay our crypto tax if need be.

Crypto activities that may trigger taxable event include as follows

1. When you sell crypto for fiat currency it is taxable and the tax is called capital gain tax.

2. If you trade one cryptocurrency for another for example Bitcoin to Solana coin it is taxable.

3. When you use crypto coin to buy goods or services for example using Bitcoin to buy a car, tv, bicycle, etc. It is taxable and the tax is called income tax

4. When you Receive crypto as income for example through mining, staking, airdrops it is taxable the tax is also called income tax

Now activities that are not taxable are.

When you transfer cryptocurrency to your other wallet account and when you are holding your crypto coin without selling is not taxable.

This are basically in USA, UK, and some other countries so it will be advise you make research about your country cryptocurrency tax law and policy.

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