Wouldn't this Monaco card mean you would be taxed?

AtillaL

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Quote from: mining1 on June 09, 2017, 06:02:32 PM

I've read people talking about it being a scam ?! What happened ?

The ICO is still on, although not gained enough for their hard cap (the soft cap is far as well, but they still have time left until the end of the ICO)...problem is, I guess, that they have no answer from VISA which makes things unclear. That and the aggressive marketing might put people off.

I for one thought it's an amazing idea, the real value being the best exchange rate that they would have. But without clear collaboration from VISA. I won't be jumping on board just yet.

Sorry for the little offtopic...

mining1

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I've read people talking about it being a scam ?! What happened ?

StevenS

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Quote from: Chris! on June 06, 2017, 08:12:40 PM

Technically you are also supposed to claim any gifts you receive too. Did you claim that $100 your Grandma gave you for your birthday?

That is not true in the US.
According to the IRS, form 709 must be filed by the giver if:

The amount given to one person totals more than $14,000 in the calendar year; and
The gift is subject to the gift taxes.

The recipient of the gift is not required to file anything, however in the very rare cases that the IRS is unable to collect the gift tax from the giver, they may collect it from you. This is rare because anyone able to give a substantial gift usually has enough money to pay the tax.

In addition, gifts may not even be subject to the gift tax in many situations, including gifts to your spouse with certain limitations, gifts to political organizations, charitable gifts, certain medical payments, certain educational payments,

MingLee

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Quote from: kubricktrader on May 23, 2017, 10:55:59 PM

I watched a Monaco Card advert on Youtube, its really trying to push it hard.

Anyway I wondering if people use the card when they make a purchase with ETH or BTC then won't they be converting from crypto world to real world and for many countries that means you are liable for capital gains? If so this card would be a nightmare for people to work out taxes later.

That's implying that there are people that will actually be paying capital gains tax on something like this. Even for most, not all, tax agencies, there's no point spending $1,200 investigating someone if there's maybe, at best, $1,000 in taxes they can get from them. While it is a nightmare to some extents, those who are liable for sizeable capital gains will likely factor something like this in.
It's hard to determine what kinds of effects this will have, especially since cryptos are mostly in a grey area (still) and not a lot of countries have details beyond "don't expect us to miss $5,000" to my knowledge.

Iranus

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Quote from: kubricktrader on May 24, 2017, 05:42:40 AM

Quote from: ulhaq on May 24, 2017, 02:36:40 AM

Let's say I exchange USD for EUR. The EUR appreciates. I use that EUR to make purchases in a EUR-denominated store. Are taxes required on that? Or just if the EUR is exchanged back into USD?

All i know is as you move from virtual world to real world and that includes fiat you are liable for cash.

You do, yes. This doesn't mean that there's anyone who will pressure you about it though.

What is important is that this involves spending fiat instead of cryptocurrencies. If people have an excuse to convert to fiat every time they want to spend cryptocurrencies, we'll see a decrease in actual use of cryptocurrencies directly to merchants.

Merchants have no incentive to accept Bitcoin if people will just spend it indirectly anyway. Same way that people buy Amazon products through Purse.io.

pixie85

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Quote from: Chris! on June 06, 2017, 08:12:40 PM

Technically, yes. In any country where selling bitcoins is considered capital gains this would be the case. Technically you are also supposed to claim any gifts you receive too. Did you claim that $100 your Grandma gave you for your birthday?

A dead law, that's what it is. You are supposed to report everything, but have you heard about someone who found money lying on the pavement and reported it as gains? Or that couple hundred they got babysitting neighbor's kids.
Cash payments never were and never will be reported by sane people. Undeclared work or black economy has been around forever.

ulhaq

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Quote from: kubricktrader on May 24, 2017, 05:42:40 AM

Quote from: ulhaq on May 24, 2017, 02:36:40 AM

Let's say I exchange USD for EUR. The EUR appreciates. I use that EUR to make purchases in a EUR-denominated store. Are taxes required on that? Or just if the EUR is exchanged back into USD?

All i know is as you move from virtual world to real world and that includes fiat you are liable for cash.

I'm not taking about the virtual world unless you mean euros and dollars to be virtual (which can be argued). That is certainly not how it works in practice. If I exchange USD for EUR and then walk into a store and buy something, I do not have to pay tax on whatever amount the euros appreciated from when I made the conversion.

Chris!

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Technically, yes. In any country where selling bitcoins is considered capital gains this would be the case. Technically you are also supposed to claim any gifts you receive too. Did you claim that $100 your Grandma gave you for your birthday?

kubricktrader

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Quote from: ulhaq on May 24, 2017, 02:36:40 AM

Let's say I exchange USD for EUR. The EUR appreciates. I use that EUR to make purchases in a EUR-denominated store. Are taxes required on that? Or just if the EUR is exchanged back into USD?

All i know is as you move from virtual world to real world and that includes fiat you are liable for cash.

ulhaq

sr. member

Activity: 503

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Let's say I exchange USD for EUR. The EUR appreciates. I use that EUR to make purchases in a EUR-denominated store. Are taxes required on that? Or just if the EUR is exchanged back into USD?

kubricktrader

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I watched a Monaco Card advert on Youtube, its really trying to push it hard.

Anyway I wondering if people use the card when they make a purchase with ETH or BTC then won't they be converting from crypto world to real world and for many countries that means you are liable for capital gains? If so this card would be a nightmare for people to work out taxes later.

Topic: Wouldn't this Monaco card mean you would be taxed? (Read 834 times)