Bitcoin Forum

I believe only coinbase currently requires you to report what you sold. Are there marketplaces where people can exchange bitcoin for USD and not report?

I would say only place with chances for that is localbitcoins. So person to person trades, without 3rd party mostly (escrow only).

What is the tax % on bitcoins anyway?

btc-e.com won't do any reporting, however they use third party payment processors to move dollars who might well ask about the sources of funds, the processors would probably want ID verification too.

that's probably the only proper exchange where it might be possible. bitfinex isn't under the main jurisdictions either but they might do it.

other than that you have peer to peer options like bitsquare.io and localbitcoins where there won't be any reporting.

the tax situation totally depends on what country you're in.

I believe that depends from country to country. If I were to sell bitcoins in serbia, I'd have to pay 20% from the entire sum as tax, but luckily, that IT department in the government isn't that big yet so the whole internet stuff is kind of above the law. You should be taxed on every earning over the internet tho.

I don't understand any of this shit. I don't understand how it could possibly be taxed, and I don't understand how much taxes I'll be paying. I live in America btw. I also am concerned about the level of complaints/scam warnings I see with btc-e and Bitfinex

you make a profit on something, you pay tax. same as everything else. if you sell a mountain of horse carcasses for a profit you pay tax on it. why should bitcoin be any different?

i assume in america you'll be paying capital gains.

you might find this site useful - https://bitcoin.tax/

Lets say if I sell $6000 worth of bitcoin. That's in the 10% bracket since I'm single right? So that would be $600 taxed?

what did you pay for them? don't answer that obviously, but that's your start off point. you don't pay any tax on the non profit. if that $6000 worth of coins cost $3000 to buy then you pay 10% of $3000.

there's usually tax free allowances so if you only sell so much in a tax year and it's below the non taxed threshold then there won't be any tax to pay. i don't know what the deal is in america but that's how it is elsewhere. it sounds like you should get the opinion of a pro.

this is why i am not using coinbase again to send or receiving bitcoin and i prefer to use other web wallet. there are localbitcoin that mention by other members and still its the best marketplaces to sell or buy bitcoin with people or seller around you. but if there is any of local market exchange then i think it would be an option for you to sell right away.

What if a person mined them all? 10% still?

wow. that's a rare thing these days.

maybe read this? - https://en.bitcoin.it/wiki/Tax_compliance#How_are_Bitcoins_that_I_have_mined_treated_for_tax_purposes.3F

and maybe ask somewhere in the mining or legal section. there must be people who've done the same thing there.

You should always bear in mind that the tax law has some particular paragraphs in each country, the tax law differs in every country.
You dont pay tax to anyone for bitcoin, the only costs are transaction fees but you dont pay any kind of tax on the network side.
Only goverment can make you pay taxes for selling cryptocurrencies,but bitcoin and its network has nothing to do with it.

There are goverments  which dont have any crypto laws, and there are countries where you have to pay every time you exchange to fiat on exchange.