Government will find a way to tax us, Bitcoin might be centralized but it's not totally private, on the opposite the transaction is very publicly transparent, the government could monitor the transaction. The government wouldn't be able to manipulate bitcoin transaction and price, but if the bitcoin is legalized, they probably find a way to control which wallet that people could legally use, they can sue people for using illegal wallet that is not registered as an ownership. But then again people can use VPN and covering their track of transaction, but that could be criminal in the future.
I mean after all we talk about possibility here, only very few things seems impossible nowadays.
Topic: Would We Pay Taxes When We Don't Exchange Bitcoin for Fiat Anymore? - page 2. (Read 557 times)
August 16, 2023, 10:16:14 AM
August 16, 2023, 05:40:01 AM
So, a senior citizen in one of the western countries makes a complaint that he preferred the 1950s when everything made sense and life was simple. He loves the analog times more than the digital. Despite this, he trusts Bitcoin self-custody, and that is the reason why he holds bitcoin. He complains that his bitcoin just sits in his hard wallet, and he doesn't even know what to do with it. According to him, his fear is that if he sells it during the next bull run, he will be taxed, and he doesn't want that. A question arises: Would taxes still be applicable if a time comes when exchanging bitcoin for fiat is no longer necessary?
Tax matters are different for different countries. It depends on which country you live in. because this matter is determined by the government of each country. If I want to tell my personal side Bitcoin is not yet legalized in my country. And there is no local bitcoin wallet in my country so again bitcoin holdings cannot be tracked by the government. And we never pay taxes to the government for bitcoins. But when we convert these bitcoins to fiat and keep that money in bank or invest elsewhere then we have to pay tax return for that money every year. 
August 16, 2023, 04:16:58 AM
According to him, his fear is that if he sells it during the next bull run, he will be taxed, and he doesn't want that.
It's silly if the reason he doesn't want to sell his Bitcoin is because he doesn't want to be taxed. He would sell it and receive fiat, he's already being taxed heavily in fiat so what difference does it make?
A question arises: Would taxes still be applicable if a time comes when exchanging bitcoin for fiat is no longer necessary?
In a time when we wouldn't need to exchange Bitcoin for fiat means Bitcoin has now been globally acceptable as a means of payment. If you're being paid with Bitcoin you'll pay income taxes.
If you buy stuff with Bitcoin you'll pay the VAT and other taxes just as it is with fiat money.
But all these depend on the country you're in.
August 15, 2023, 03:00:06 PM
To the best of my knowledge, Bitcoin or Crypto are still treated as property similar to stocks or other investments, and if you hold them profitably or otherwise, you are tax-exempt, or tax-exempt. But it depends on which country you live in.
And maybe when converting Bitcoin to fiat or buying something with Bitcoin there is a possibility of being taxable, and I don't know exactly either. However it's a good idea if you are buying and selling Bitcoin or Crypto or just keeping it, you should find a tax professional who understands these issues and discuss your situation with them.
And maybe when converting Bitcoin to fiat or buying something with Bitcoin there is a possibility of being taxable, and I don't know exactly either. However it's a good idea if you are buying and selling Bitcoin or Crypto or just keeping it, you should find a tax professional who understands these issues and discuss your situation with them.
August 15, 2023, 01:45:53 PM
So, a senior citizen in one of the western countries makes a complaint that he preferred the 1950s when everything made sense and life was simple. He loves the analog times more than the digital. Despite this, he trusts Bitcoin self-custody, and that is the reason why he holds bitcoin. He complains that his bitcoin just sits in his hard wallet, and he doesn't even know what to do with it. According to him, his fear is that if he sells it during the next bull run, he will be taxed, and he doesn't want that. A question arises: Would taxes still be applicable if a time comes when exchanging bitcoin for fiat is no longer necessary?
This issue of taxing with btc transaction is just what the government uses as an edge since they themselves cannot control users fund with the decentralized nature of Bitcoin so it's only understandable that they tax it and many countries including mine which CBN previously banned the use of crypto are now looking other initiative to actually be able to task crypto transaction. 
August 15, 2023, 01:38:45 PM
It is better for that person to consult with a tax attorney as the laws of each country are different, however in some jurisdictions if you hold an asset for longer than a year before you sell it then you do not need to pay any taxes on it, so if such a law applies to him then he does not have anything to worry about, however he still needs to report this on his tax declaration, otherwise he may get in trouble even if he was not supposed to pay any tax when he sells his coins.
I like that jurisdiction you said there about holding an asset. I think if many countries has this same jurisdiction then I think many people will now HODL their Bitcoins for a long time because I know that many people doesn't want to pay a tax. This is a good thing to the Bitcoin world because this makes the Bitcoin network stronger and its value can also grow bigger this time. Although this may seem a bad thing for the governments but I think they can still be able to collect tax the other way.There are still things out there that can be taxed and people can't possibly avoid them. A few examples is when we play gambling, and buy our groceries in the mall.
August 13, 2023, 06:01:08 PM
So, a senior citizen in one of the western countries makes a complaint that he preferred the 1950s when everything made sense and life was simple. He loves the analog times more than the digital. Despite this, he trusts Bitcoin self-custody, and that is the reason why he holds bitcoin. He complains that his bitcoin just sits in his hard wallet, and he doesn't even know what to do with it. According to him, his fear is that if he sells it during the next bull run, he will be taxed, and he doesn't want that. A question arises: Would taxes still be applicable if a time comes when exchanging bitcoin for fiat is no longer necessary?
The scenario is BTC -> fiat, so I reckon there will always be taxes involved there. In the first place isn't everything he buys and pays for have taxes already involved in them? I don't think adding one more to the pot would be that much of a problem for him.If there's no need for the conversion to happen, and in essence means that crypto is globally accepted and globally used now, taxes would probably still exist, but not for the conversion but rather taxes like what we have right now. I hardly doubt government accepting crypto payments as a possible method would allow it to bypass tax in the first place, heck they might even impose larger tax in comparison to fiat (or cbdc or whatever they have by then).
August 13, 2023, 04:43:31 PM
It would be very utopian to imagine a time when Bitcoin is the only currency needed and a state does not require taxes from its citizens. How could a nation stand, with what income? Should there be private insurance that covers most of the services and how would it cover the public expenses it has to bear? Roads, parks, land reclamation, lighting, etc...
August 13, 2023, 04:24:03 PM
A question arises: Would taxes still be applicable if a time comes when exchanging bitcoin for fiat is no longer necessary?
Yes. In every negotiations you have a taxed service or product. When you offer your services or sell your products you have to open a company on the respective governmental organ to operate legally and every sale made you have to notify the government about that. So, the taxes will be applied over your sales, doesn't matter if the customer used fiat or Bitcoin to conclude the negotiation.Moreover, when you buy a product, usually taxes are already inserted on its final price. When you use Bitcoin to make a purchase you are already paying taxes automatically. There is no way to avoid this.
August 13, 2023, 03:35:56 PM
Initially, it's crucial to show respect for and adhere to government regulations, particularly regarding taxation. Certain nations, such as the US, exhibit a stringent approach to tax matters, making it challenging to evade taxes while residing there. However, should someone genuinely wish to avoid taxes, they might consider utilizing peer-to-peer platforms to sell Bitcoin. Although I can't confirm whether centralized exchanges automatically deduct taxes, this might differ in regions without crypto support. Engaging in anonymous selling could potentially provide an avenue to evade taxes.
August 13, 2023, 03:24:50 PM
According to him, his fear is that if he sells it during the next bull run, he will be taxed, and he doesn't want that.
Bull runs end with a short-living peak and a sharp fall. If you sell in the bull market, even after paying taxes, you will have more money than the average value of your coins during the bull+bear market.
To illustrate, look at the 2020-2023 period, what's the average price? I'm not going to look it up, let's just say it's $40k. But if you sold at $60k and paid 20% tax, you'd have $48k.
August 13, 2023, 10:05:17 AM
[....]When bitcoin is use directly to pay goods and services from p2p, I don't think there will be any taxation again since Bitcoin decentralized.
Bitcoin is decentralized but remember that it's not completely anonymous so you can only evade paying taxes as long as possible. Maybe you can get away for small transactions for some time but don't expect these authorities not to connect them and catch up. 
August 13, 2023, 09:28:03 AM
I like the digital age than analog age. And bitcoin is also a digital currency and not analog currency. Analog currencies are the fiat physical currencies and that is why they are trying to use mixed currencies which is the fiat and the CBDC. And it is not working in many countries. Someone that has money and don't want to pay tax is a greedy person who does not want for the development of the country. When bitcoin is use directly to pay goods and services from p2p, I don't think there will be any taxation again since Bitcoin decentralized.
August 13, 2023, 09:00:10 AM
In addition, when converting Bitcoin to fiat currency is no longer necessary, it does not necessarily eliminate the possibility of tax application. Certain circumstances may require users to report earnings from cryptocurrency transactions to the government.
Correct especially on US. Cryptocurrency on US is already fully regulated and you will need to report all your taxes on crypto from your profit/loss even if the user doesn’t convert to fiat or else you will face some charges when the IRS audit your exchange account.
I remember before that many people in crypto ask for a regulation on crypto as safety for there investment. Now it’s already backfire since they are paying taxes and can’t hold Bitcoin without any report sent to the IRS.
August 13, 2023, 08:48:27 AM
This will depend on your country if your country has a tax on bitcoin for sure, once you sell your assets, there's an equivalent percentage of it, many people to escape those taxes find a way to other countries they know a friend of them or family and let those exchange and brings back to them into the form of fiat currency but for me it's quite hassle because it's the same way if you will use third-party applications for example exchanges, you will sell your bitcoin but it into 1:1 ratio still there's a fee once you make in a withdrawal too there's a percentage of it, use the things you have to get convenience that's people now are paying to, because tax is every where.
August 13, 2023, 06:50:30 AM
As you can see the tax applied when selling Bitcoin and converting to fiat currency really depends on the tax regulations in each specific country. Some countries have clear regulations on whether personal income tax applies to cryptocurrency transactions, while others may have different regulations.
In addition, when converting Bitcoin to fiat currency is no longer necessary, it does not necessarily eliminate the possibility of tax application. Certain circumstances may require users to report earnings from cryptocurrency transactions to the government.
In addition, when converting Bitcoin to fiat currency is no longer necessary, it does not necessarily eliminate the possibility of tax application. Certain circumstances may require users to report earnings from cryptocurrency transactions to the government.
August 13, 2023, 06:16:31 AM
Regulations and laws regarding the trading and use of Bitcoin actually vary from country to country. From time to time, the government may decide to impose taxes on these transactions, even though that may be disappointing to some.
I understand this feeling when I say that although we want to change this, the reality is that taxes are an inevitable part of life. While we may disagree or find it unfair, it is still an important part of maintaining public infrastructure and services.
I understand this feeling when I say that although we want to change this, the reality is that taxes are an inevitable part of life. While we may disagree or find it unfair, it is still an important part of maintaining public infrastructure and services.
August 13, 2023, 06:08:53 AM
See, I understand. Often, the past looks preferable because it is familiar. But lets not delude ourselves; the 1950s were not without their own problems. You've now dabbled in the cryptocurrency industry, a field that screams the future, but you still appear to be lost. Its a frequent emotion among people who are unaware of their own potential.
Your Bitcoin signifies a paradigm shift in how we view value and money; it is more than simply some digital gold. And yes, governments worldwide will ALWAYS find ways to get their cut. Do you believe tax regulations will not change even if the world completely switches to cryptocurrencies? No! They will undergo remodeling and reorganization. So if you're hoping for a world without taxes, I've given some bad news: keep dreaming! Take initiative. Learn more. Keep a close eye on the future while navigating the present.
Your Bitcoin signifies a paradigm shift in how we view value and money; it is more than simply some digital gold. And yes, governments worldwide will ALWAYS find ways to get their cut. Do you believe tax regulations will not change even if the world completely switches to cryptocurrencies? No! They will undergo remodeling and reorganization. So if you're hoping for a world without taxes, I've given some bad news: keep dreaming! Take initiative. Learn more. Keep a close eye on the future while navigating the present.
August 13, 2023, 06:02:03 AM
It's in the far future which is quite unpredictable. Bitcoin is still not acceptable all over the world. We are still converting it to local fiat currency in order to use it. But in the future, if Bitcoin is accepted all over the world and there's no need to convert it to fiat, then that would be a whole new story. Governments are always trying to benefit from everything. Putting taxes on everything. Although there are countries where there are no taxes on crypto as shown in the image below.
[Source]
So it will be interesting to see in the future whether tax-free countries will put a tax on crypto or not. I think places like this would still exist and there will be places where taxes will still be put on crypto. Based on where we are from, this could change. As Bitcoin is still not accepted worldwide, we can not say for sure. Maybe when it's accepted, there will be universal rules on Bitcoin. Only time will tell.
[Source]
So it will be interesting to see in the future whether tax-free countries will put a tax on crypto or not. I think places like this would still exist and there will be places where taxes will still be put on crypto. Based on where we are from, this could change. As Bitcoin is still not accepted worldwide, we can not say for sure. Maybe when it's accepted, there will be universal rules on Bitcoin. Only time will tell.
August 13, 2023, 05:37:25 AM
The old saying of "Death and taxes" comes to mind, when I see questions like this. Let's say he has several bitcoins and he just use those bitcoins to buy goods and pay for services, then the merchant accepting it, will have to dox him, when the audit is done by the tax authorities.
So you can do direct payments without converting it to Fiat.. but it leaves a paper trail and that is what the tax authorities needs to ask the right questions, when they audit him.
So you can do direct payments without converting it to Fiat.. but it leaves a paper trail and that is what the tax authorities needs to ask the right questions, when they audit him.
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