Bitcoin Forum

What you should know about digital currency

 What is digital currency?

Digital currency is virtual money that can be used to buy and sell goods or services on the Internet. Bitcoins are an example of digital currency. Bitcoins are not controlled by central banks or any country, and can be traded anonymously. Bitcoins can be bought and sold in return for traditional currency, and can also be transferred from one person to another.

Do tax rules apply when digital currency is used?

Yes. Where digital currency is used to pay for goods or services, the rules for barter transactions apply. A barter transaction occurs when any two persons agree to exchange goods or services and carry out that exchange without using legal currency. For example, paying for movies with digital currency is a barter transaction. The value of the movies purchased using digital currency must be included in the seller’s income for tax purposes. The amount to be included would be the value of the movies in Canadian dollars.

More information on the tax implications of barter transactions is available by consulting the Canada Revenue Agency’s Interpretation Bulletin IT-490, Barter Transactions.

Digital currency can also be bought or sold like a commodity. Any resulting gains or losses could be taxable income or capital for the taxpayer. Paragraphs 9 to 32 of Interpretation Bulletin IT-479R, Transactions in Securities, provide information that can help in determining whether transactions are income or capital in nature.

Should I be concerned about reporting requirements when using digital currency?

Not reporting income from domestic or foreign sources is illegal. Canadians should know that the Canada Revenue Agency (CRA) is very active in pursuing cases of non-compliance, in order to ensure that the tax system remains fair for everyone.

If required, you should take this opportunity to correct your tax affairs through the CRA’s Voluntary Disclosures Program. For more information, go to www.cra.gc.ca/voluntarydisclosures.

I have to admit i have not and i am surprised anyone has (claimed it on their tax return)
But i pretty much heard about my tax guidelines as i quit doing this stuff (trading)
So i don't know if i am potentially liable / in trouble possibly for not making claims.
If they came knocking at my door that would be my excuse anyway LOL

I have to admit i have not and i am surprised anyone has (claimed it on their tax return)
But i pretty much heard about my tax guidelines as i quit doing this stuff (trading)
So i don't know if i am potentially liable / in trouble possibly for not making claims.
If they came knocking at my door that would be my excuse anyway LOL

They shouldn't. I hope they don't. We need freedom. Of course, countries will try to support taxes and enforce them, but it's mostly impossible for the most part...

It is NOT taxed if
1) you do not tell the authorities
2) you do not have your name connected to the addresses

My friend asked his tax accountant; the accountant was smart and asked my friend if his name was connected to any bitcoin wallets; my friend said "no" and the reply from the accountant was basically "I do NOT want to hear about your bitcoin".

He should fire that accountant immediately

Why? I am sure that the accountant saved my friend a lot of time and money!  ;D

Cash seems to be also tax free in your opinion.

He should fire that accountant immediately

it's about the law and the biggest baddest law of them all ! TAXATION

You kids out there think the tax laws are some kind of little joke..

Opinion? I posted 25 facts, including this one, all of which you ignored:

"The IRS agents have no legal authority to demand anything from you, if there are no 3rd party informational documents sent to them with your name on it."

Make sure you save this link so you can use it as 'Exhibit A' for your defense later on

sounds like we got one of those i don't have to pay tax guys here.. funny ahhaha

Why make a thread and poll if you don't want to hear opinions contrary to your own?

Do tax rules apply? Sure, but only to corporations located within the Federal Zone.

“The individual, unlike the corporation, cannot be taxed for the mere privilege of existing. . . . The individual's rights to live and own property are natural rights for the enjoyment of which an excise cannot be imposed.”

"Army (so you don't have the Iraq flag on your money)"
What did the Iraqis ever do to you? They had WMDs? They did 9/11? What about the fact that this same US military slaughtered 150,000 Iraqis on February 28 1991, in a brutal, horrendous war crime? This same military was ordered to kill these surrendering troops, who were then bulldozed into mass unmarked graves in the desert, some still alive. That makes you feel good and happy? That was worth the expense?

In the US, "all individual income tax revenues are gone before one nickel is spent on the services [that] taxpayers expect from their government". The income tax is voluntary, and everything in this nation is voluntary, it is in the laws (Statutes at Large and Constitution), but you were never made aware of HOW or WHY, even though it is repeated by everyone from Senators to the IRS. Your posts are full of conjecture, never any citations. You need to know the law and do your own thinking. I bet there are lots of things that you are not aware of or never thought about.

I once bought bitcoin from an old lady who told me that she receives all kinds of state benefits and she keeps all of her money and savings in gold so that it is not tracked or taxed. Smart lady; she did not need an accountant or the government to tell her what to do with HER property.

By the way, if you have never sent in any direct and simple questions to the tax authorities, then you would not know even the first thing about taxation, since you never bothered to ASK.