Bitcoin Forum

Bitcoin, the largest and most well-known digital currency, operates under anonymity but can track traces as it has electronic diaries that track every transaction. Although all buyer and seller information is a string of letters and numbers, there is technology available to track and capture illegal bitcoins.
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The US Department of Taxation rules Bitcoin as a virtual asset instead of a formal currency.
Any transaction using Bitcoin will be taxed on the basis of the tax rules applicable to the asset. This means Bitcoin related transactions must be fully reported to the Internal Revenue Service for tax administration.
US taxpayers selling Bit[Suspicious link removed]ds must add the value Bitcoin receives to the annual income tax return. This value is calculated at the exchange rate at the time the taxpayer receives the payment, or at the time of printing the invoice.
If Bitcoin is stored in the form of capital (similar to stocks, bonds, and other investment assets), US taxpayers must report full profit or loss.

I think taxation is a good thing to show that bitcoin is a legitimate asset, not an illegal one, which will make it easier for more investors to join cryptocurrencies. Second, the various exchanges can be regulated, though taxation will be a good thing to show that bitcoin is a illegal one, which will make it easier for more investors to join cryptocurrencies. Second, the various Although the taxation will reduce the returns to investors, it will also be able to protect some basic rights and interests. However, some basic rights and interests can be better protected.

Historically the top cryptocurrencys have had insane returns, so I dont think their is a problem paying taxes. Will people lie about cryptocurrency earnings? Of course, will people get caught? Yes.

Pay your taxes, money is just money.

Well the obvious answer would be that you would have less take-home profit, but are you asking whether that would impact incoming investments?

I honestly don't think it will stop people from investing. Taxes usually follow a bracketing system, so you only really pay a large percentage if you earned gargantuan amounts. For as long as governments don't craft a special "crypto tax" where you have to pay a higher amount than you normally would for crypto-related profits, most people should find taxation generally reasonable.

It kind of has the same logic as "why would I work a high paying job if I'm paying a massive amount in taxes? Might as well work a job with low pay."

I think it is technically very difficult to achieve. I even think it might be taxed on the exchange to achieve the purpose of taxation. Of course, I do not deny that taxation. I have always believed that the legalization of cryptocurrencies is good for us. Formal investors are more reasonable and fair.

The CFTC is involved in the Tether case, so I'm thinking the government will end up taxing them as commodities, which is actually great.  I mean, its going to be almost impossible to enforce taxes if you do business on non USA exchanges but they'll try.

If cryptos are taxed as commodities, theyll be subjected to much lower tax rates than income tax rates.

in my opinion, the existence of a tax on bitcoin makes the legality of bitcoin. So, not many people do not know about bitcoin that think bitcoin is illegal.

Encryption monetary income may cause up to 20% - 30% of the tax, but it depends on whether the digital currency can be regarded as a kind of business income or capital income.

In our country,  bitcoin is regulated by our government, so it is somewhat a form of taxation. The price of selling bitcoin is just right,  meaning no added fees by the government. While buying one bitcoin with our fiat is larger tha selling one in terms of price.
 Example:
Selling 1 btc = 500 000 in terms of our fiat.
Buying 1 btc = 700 000 in terms of our fiat.

The gap between selling and buying goes to the taxed payed by the converter to our government. In short, our government is taxing the converter of btc to our fiat and that taxation determines the price of buying bitcoin.

I do not know why some bitcoin holders will want to get in trouble with the tax authorities especially when their earnings are great, I know that some are against taxes as a matter of principle and I respect that but when the choices are to enjoy your money and be without any kind of worry or to always be on your toes worried about being caught by the tax authorities, the choice is easy pay your taxes.

Ideally, this is what can be acceptable. There is a need to make a compromise here with the government which is bent on regulating something that is relatively new and that it is finding a little hard to understand. Everything then will boils down to taxation -- or what the government can get from every transactions done with Bitcoin. For as long as the tax rate is not really that burdensome, we have no choice but to pay our dues just like doing any other type of business online or offline. Tax is something so hard to get away with as getting entangled with the law is something we should avoid at all cost. In return, we should be demanding some rights and privileges as taxpayers.

Hi, buddies

i think it will affected  to bitcoin prices..

i think we couldn't buy bitcoin as much as wishes

Bitcoin taxation should not affect the investment, after all, but also increase investment, after all, the tax shows that the country has accepted bitcoin transactions.

I also cannot imagine and realize how it can be done. By the way, even businessmen that deal with fiat money manage to avoid taxes. Another question: why should traders and investors pay taxes for crypto that is not something material?

Now in every country everything is taxed, so wherever you work, you will have to pay it. A bitcoin - it's the same job as the rest, just focused on the Internet. I do not think that this can affect the amount and size of investments.

and this is a great innovation, I deeply regret the country that does not want to participate and support this technology.
actually if we all support this technology, I think this technology will develop and very good if applied to our life.
and I do not think it would be a problem if bitcoin would be taxed. because it may be natural as a digital currency if it is inaugurated.

I do not mind paying taxes, because I think it's very good. But my country's government wants to set a limit on the number of currencies. That's what I think is absolutely unacceptable, since such restrictions will negatively affect the small investors of my country, including me. And on bitcoin.

At the very least, taxation of bitcoin means acceptance by the state in the country. This is much better than the ban, since it is better to pay for the use of bitcoin than not to do it at all.

i dont know of nigeria under the new tax law, but i know bitcoin is taxable in united states of America.

Taxation of the crypto currency in the future should become a common phenomenon. In any case, the states will use the opportunity to establish a tax on the income received from operations with the crypto currency and on capital growth in the crypto currency. Just the taxation conditions in different countries will be different. Probably there will also be a temporary exemption of citizens from these taxes as it was done in Belarus, where all taxable subjects are exempt from such tax for the next five years. The duty to pay such taxes is unlikely to affect the amount of investment in the crypto currency. Since the employment of a crypto currency brings a good profit, it is better to partially lose it in the form of a tax than not to have any profit at all.

Only if you buy and sell bitcoin for your native currency you shall be taxed. Or if you use a exchange where they track your data. But sending and receiving bitcoins or anything else won't be taxed AFAIK. Obviously it won't be best for my investments as I could use the money I pay for tax for a better investment. But paying taxes is also my duty. So whatever required shall be done even though I may not be the biggest fan of it.

Bitcoin can be taxed, how does it affect investment? It certainly affects everyone who wants to invest in bitcoin because it is taxed on bitcoin. Perhaps no one else is willing to invest because it is taxed.Taxation of crypto currency in the future should be a phenomenon that exists in a country. The tax liability can affect the amount of investment. Because the use of crypto currency produces good profits.

Everything in this world is taxed  in the same way bitcoin is taxed but demand in crypto currencies wont change

If Bitcoin is getting taxed then the Government knows that Bitcoin can be used to generate income.

From a simple demand/supply perspective you could safely deduce that tax will reduce demand. It in essence reduces profits and so makes bitcoin a less attractive investment. From that demand would fall and so subsequently would the price. Alternatively you can argue that tax leads to a reduced supply as people are less willing to sell and take profit given that they'll be heavily taxed on it.

Like what usually happens in our salaries. Instead of getting the whole amount, you'll get a net pay based on how much tax will be implemented. It might be bad for small investors. The only one who will benefit of it is the government. Because of bitcoin's huge value and many people who are using bitcoin, imagine how much money can a government obtain from them and will it be used for the benefit of people or will they keep it in their pockets.

I think that taxing on bitcoin would be good. The investors will have to pay a fee like 5-10% when selling it only and the tax should not be collected from bitcoin holders. This way the price of bitcoin would go up very fast. There are however ways to evade taxes and people who are bad persons knows these ways really well. Overall taxation for bitcoin can be a good thing for the bitcoin ecosystem , always only when it is applied for people who are selling it, and not buyers or holders.

No a tax like that will be fine but that is not what they want, they want you to pay the same taxes as stock holders and depending in the laws of your country that can be way higher than that and you can be sure that if bitcoin goes up a lot in the price we may see special taxes and way higher tax rates, this is what I think it is going to happen but I could be mistaken.

I think if bitcoin is taxed, then bitcoin is recognized as legitimate, which would be good for the development of bitcoin.

Hopefully, the tax imposed on trading would stifle the ability of those whales trying to manipulate the market with their pump-and-dump scams, which IMO is significantly negatively impacting the whole market/community and attitudes towards cryptos.

Good luck enforcing and applying it.  How will they differentiate between income and simply moving one's assets around?  

That might be good for bitcoin as it makes bitcoin legal. But it affects the profitability of investors. Investors must pay taxes to the state. I think this is good for investors because it makes bitcoins safer and more stable.

I think this what the government wants, to impose and implement taxes on cryptocurrecies,because its spreading all around the world and many countries had adopted the digital currency.I believed that thru taxation people who dont believe on the digital currency ,will makes to their mind that it is legal and i think many people will invest.

I am not sure paying tax and regulation mean you are safe as an investor,what every government will be implementing is to make transaction of money in and out of exchanges transparent and some of them are implementing strict rules to allow only native residents to trade in their exchanges ,which makes things hard for people who likes to arbitrage when you see a price difference. I really hope there will be some countries where crypto currency be accepted as a free heaven .

As long as your not using any centralized wallets or exchanges that requires verification from its users you are still anonymous, transactions are transparent, it cannot be rewritten by anyone nor delete so the catch is you own the private key, no KYC compliance, and ID verifications you are anonymous, but there's a way to cover your transactions trail and that is by using mixing services, you can search that so you can fully understand how it works, Google is a powerful tool.

I think taxing bitcoin means making our path clear from the regulation. I mean we don't need to worry about the regulation changes, bans, limitations on use of crypto etc etc because if it is taxed then it means government is already taking care of the regulations. Thus there will be no more hypes whether bitcoin is going to be banned etc etc and thus people won't get panicked and won't sell off the stuff making the market unhealthy. Thus everything will get in line and bitcoin can see some good space to grow itself.

That's why many US-based exchanges now getting stricter with personal identity verification. They want the KYC verification to handle any US citizen, They want to take over the decentralized things and forced it to become centralized in anyways. But the truth is government regulation is the only way for cryptocurrencies to be widely accepted in the worlds.