Bitcoin Forum

Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?

simply having tons isn't income,
if it's about income, BTC aren't any different from cash, you can avoid to pay taxes, but you're not allowed to.  ;)

i would think they do not count as income until realized (converted to USD/other currency), and capital gains/losses also assessed at that point on the difference between acquisition and realization value. 

that is, no tax until you sell them, then you have to pay tax on the market value when you received them plus the capital gains tax on any value they gained between when you got them and when you sold them.


but i believe (if US state's sales tax is like it is in Canada) you would need to withhold sales tax on that 20k of sales if appropriate.  i'm basing this off the tax effect of community currencies, like canadian tire money, which i consider bitcoin to be the same as in a legal sense.  you have to pay sales tax on sales paid in CTM, but you can also pay that tax in CTM.

The big question would be whether bitcoin is a currency or a barter good. In some areas it won't make a difference, but in the US it makes a big difference and we would hope for it to be considered a currency.

In a goods-for-currency trade, the seller pays income tax, at some exchange rate determined by the IRS.
In a goods-for-goods trade, both parties are taxed based on the value of what they receive. This is exactly as unfair as it sounds.

If government really wants to tax you they will come up with some excuse

I have thought of creating a topic regarding this topic, but instead, i used the search bar to see if there are previous topics about taxing the Bitcoins.  This was posted May 10, 2011, and nobody did care to reply this when I believe this is a high-quality topic. 

Should the government impose a tax on transactions using the cryptocurrency?   In what way they can. 

In the US, Bitcoin is treated as a commodity and is thus not taxed unless you want to cash out to FIAT.
It is only then that you're forced to declare your income and be taxed on it. Bitcoins themselves are not (and cannot be) taxed.

Yes bitcoin is taxable. Not by means of the government is taxing but I guess that the miners were the one who are asking for taxes. The confirmation is dependable on how much btc you spend. If you will spend the high amount in sending then the confirmation of your transaction will be fast.

Don't even know what you, nor most people on this thread are trying to say but I'll sum it up fast for you bud.

When you earn bitcoins, you're going to have to state that you've earned this -- easiest way is going to be convert these Bitcoins to cash and then file it on your taxes as earned income, as you wouldn't want a fluctuating price present on their as it would fuck with your taxes.

Don't believe what anyone says when they say no, you're going to have to pay taxes on any earned income. Plain and Simple.

In the US they treat Bitcoin as any other commodity that are traded and for that reason trading Bitcoin on exchanges will be no different than any other commodity being traded on other financial platforms. You are taxed on your profits and not what the value of that commodity is.

The only time when you can calculate the profits, is when you convert back to the Fiat value in the Dollar value. So when you withdraw these coins to your bank account, you will be taxed on it.

As others have said before me. Bitcoin is capital gains tax and not income tax. You can hold bitcoins for a long time and not pay any tax on them for many many years. But once you sell them, you have to pay a long term capital gains tax. If you sell them before a full year you have to pay short term capital gains tax.

So just keep them for a long time. Don't try and trade for a marginal profit because you'll get eaten alive by taxes.

I need a better explanation for this

Well, i really don’t think so. Not unless you go out and ahout to the world that you have bitcoins at hand. But maybe when you turn it into fiat, then that might be considered as an income. But then again, they don’t know if it was a gift or not. So i highly doubt its possible as of today.

Bitcoins can be taxable and it will be implemented by the government soon enough. You can avoid tax by investment, because in a few countries what income you have left after investment is the tax you have to pay for. Like what I mean is, let's say your income is around 100$(just an example)  and you invest 30$ in some shares or something else, the tax you will have to pay will be for 70$ and not for 100$,then again I am not sure if all countries follow this. This is totally different than tax evasion, this is avoiding of tax. Tax evasion is that you don't pay tax at all which is illegal in the every country where there is tax.

Bitcoin as an asset is not taxable. As mentioned in the above quote if the user make use of it directly without converting to fiat the transaction value doesn't get taxed. The same when converted to fiat, based on the value the user will be taxed. Several countries have been making plans to tax even for every transaction same as with gold storage.

I think it will depend on the nature of the business or service that you will having, if it will violate local laws and policies especially on taxation then it should be taxable, Having that kind of amount of bitcoin you should be also responsible to your local laws and policies regarding that.

I think when the government has heard enough of this cryptocurrency and the people are really into it and somehow able to measure the magnitude of the population using it, then, that will be the time they will propose law to regulate it and the tax that will be impose....

Honestly, Online services somehow doesn't even covered by the law sometimes specially on taxes but surely the time will come that the Government will find it's way to capture those kind of illegal activities, as for you thread starter, It is better if you will just submit on the law of the local government for you to know the truth instead of thinking of the situation or scenarios and asking for online advice, it will just make you paranoid. Just go to a local government office and ask this kind of concern.

ships that stop on the island can be taxes let alone this income is so large that it will take a lot of pocket money to pay a very infinite tax ,, it's according to my thinking whether the other is the same as me :)

Yes, like many countries including USA , the taxation law has no mention of BITCOIN. But remeber , the taxation laws always keep the meanining of income so wide that tha taxmen will always bring some interpretation to include it.

it depends on the fee of a certain website changer in the internet
if you got higher amount of coins or crypto they will charge you big and bitcoin will not have a tax because of technology it has blockchain
it will hard to have taxes especially in internet based currency

It is all up to the government whether they take tax on bitcoin or not. Have bitcoin is like having an income meaning we are obliged to pay taxes but its up to you to pay and merit bitcoin as a source of income.

Bitcoin in its own state is not taxable as if you were having 1 bitcoin in this year the same in next year then there is no tax applied to it, but suppose you sell those coin for capital gains then yes it is taxable,but for this trade also there is another route in which you don't have to pay taxes on capital gains, all you have to do is skip the exchange and do the trade in person for cash and there will not be any official record of that transaction taking place so you don't have to pay any tax on this but it will become your black money and you would have to find a way to make it legitimate on your own.

Well since bitcoin is a way of earning for everyone of us the government can give taxes on our earnings. But as long us our government don't know bitcoin that well we can say that we are safe  ;D

Bitcoins in many places has no taxation implemented so far. Maybe they find difficulties to manipulate the circulation of bitcoin due to its highly secured and  encrypted, Or maybe they are out of control on online jobs so far, It was advantageous to our part as bitcoin holders whom we are exempted with taxes. But for safety precautions like scammers and hackers its a big threat for us . If ever we are victims of that kind of crime, We took hardly find ways to recover because of its not legally secured.

as of now there are no law and tax that pass in the government about taxing bitcoin in my country. but i think if the government know about the bitcoin and the good benefits and advantage of bitcoin they it will put an tax in this . but as of now the government in this don't know more about bitcoin. they just ignore it .so as long the government doesn't know about the bitcoin it safe to tax. people used it for their earnings and if they have put an tax on it. its all up to the government. its they're choice

I hope the taxable bitcoin, so this becomes the first door to legalized by the state, it is time for the tax council to think about this so that it can increase the state income from bitcoin.

This is what we all should understand that the bitcoins in your wallets are not taxable until you convert them in fiat because to tax over the bitcoin network on transactions and savings is somehow a difficult task, and still now it is a challenge for government to implement tax over there.

when your country hasn't allowed it as a legal currency then it should not be taxable. how can you pay the tax if that is not any registered? so I think Bitcoin is not taxable, but when you are going to withdraw your cash from Bitcoin then you have to pay the least amount of fee. that's it.

I dont think so, but the transaction fees is not tax i think it is not taxable goverment dont know what bitcoin is thats why they dont give taxes.

in my country BTC is not Taxable dont know about other countries

I read about it, its says if you earn an income  from it then its taxable. Its subject to income tax or self employment tax. So bitcoin is taxable.

I can see that when Bitcoin etc becomes more widely accepted and mainstream that governments will jump on the chance to tax it. Not seen any real ways that they would do this and implement it but i can see it happening

edit: i am in the uk and just came across this https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

What I understand is Bitcoin is not accountable as income to impose tax on it.

Although Bitcoin may be used like fiat currency is used, Bitcoin and digital currency in general, aren’t considered to be money (legal tender) by most countries' taxation systems. In fact, they are considered to be personal property, like gold, silver or corporate stock.
Unless your business is buying or selling Bitcoin, they are a capital asset. In the US, profits are taxed at capital gains rates. Losses are deductible only if Bitcoin is used for business or investment purposes (with investment losses being limited to $3000 annually).
When it comes to other countries of course, it is down to local policy. Keep in mind that cryptocurrency is relatively new to most economies with governments scrambling to regulate it as well as trying to tax it. Policies are bound to keep changing, so it’s best to complete a thorough investigation locally before jumping to conclusions or proceeding with a business plan or an investment.

Bitcoin are not taxable no matter how or where you use it if the country you are living in haven't regulated bitcoin yet. But if you convert your bitcoins to fiat and withdraw it on banks that will be the only time where you will be taxed.

Bitcoin is taxable and is taxavoidable in the same time. As long as your have your bitcoins in the wallet, or if you pay with bitcoins you are safe from the taxes. As long as you pay out from the exchange and transfer it to the bank you could be fined for not paying your income tax that you have gained on speculating activities.

That is so in most countries at least. Btw... most income taxes are actually illegal in the international law. But that is the subject for whole another issue.

You can't get taxed for owning or earning Bitcoin, it's not that the government can know if you do, it's out of their control. However, let's suppose you are withdrawing cash from exchanges to your bank account, then yes you may have to declare where the money is coming from.

As of now, in the case of my country, Bitcoins are not YET taxable. I said "yet" because I consider this is one of the risks of Bitcoin, that sooner or later the government will butt in and impose regulations and tax in Bitcoin trading.

I know this because the government will never let itself be left behind especially if they will see the potential return on investment that Bitcoins can give to the investors. But actually, imposing tax will be the least they can do. Because there is also a worst scenario that instead of imposing tax, they might ban Bitcoin totally.

If the country creates a rule about bitcoin transactions, then bitcoin may be taxed on each transaction, and that could be an additional income for the country.

I believe I have read somewhere on this forum where people say they are being taxed when they are either buying or selling their bitcoins. And I also know that lots of online merchants tax those who use bitcoins to purchase their goods and services.

You have to look at your country's laws. Some countries have laws that say you must report the BTC you own at any time on a yearly basis, and you must also report all of your trades, including fiat trades, which is just insane.

Some countries only need you to report entry point and then pay capital gains tax once when you cash out.

I don't want to be no one's guinea pig risking my BTC in the process so since this is still so new, im simply going to keep holding it and not selling anything.

Bitcoin if realised to fiat money then yes they are absolutely taxable. I am not sure about converting to other assets. For instance, I buy bitcoin with Fiat money, earn profit in bitcoin and then buy equities (or any other asset) for the entire amount of bitcoin. The difficult part is how do you declare losses (if any) with bitcoins

India also imposes sales tax on bitcoin which the buyer pays, so it means you are taxed on buying as well

I think bitcoin is not taxable yet.  my country. The government has yet to decide on a tax  bitcoin

This guy asked like 6-7 years ago and people still have not gotten it. In most of the world you will owe some kind of tax. In the U.S. you will owe capitol gains on all profits you made. No exceptions.

Even though BTC is Decentralized, it depends upon the rules of your Country, some ask for all of your BTC transaction but I don't think they can trace your transactions so it's up to you if you will report it or not. I've read some articles regarding the countries that implemented/developed BTC taxation but I don't know if it's true or not, anyway here are the following countries: The United States of America, The European Union, The United Kingdom, Germany, Japan, and Australia. The taxation of BTC differ significantly depending on the jurisdictions.

If you keep your savings in bitcoin even in the US, it is not subject to taxation. Only when you exchange bitcoin for Fiat money and money will be deposited into your Bank account you must pay taxes. So you couldn't claim it is better to look for opportunities to purchase goods with bitcoin.

Not every country regulates that question the same way. For example in my country Bitcoin as currency isn't taxed but exchanging transactions to fiat or vice versa could be.

In my country that is not the rule but more the exception because only if transactions exceed some value they could catch some authorities eye.
I can tell for the Europe and in majority european countries Bitcoin is not taxed.

It will be a very difficult and complicated process for government to be able to collect tax from bitcoin  because bitcoin was meant to be decentralized without government ability to control. In conclusion bitcoin is not taxable.

How are you getting taxed when buying bitcoins?
You are buying them from a vending machine and you pay V.A.T ?

You are going to be taxed only when you sell your coins.
Nobody is able to tax anything unless you transform that in fiat and you (presumably) get some profit by doing so.
And even then if you are able to prove you bought at 4900 and sold at 3700 you might avoid taxation.

Let's not mistake fees that are imposed by exchanges or web wallet with taxes from the government.

It will be difficult to tax bitcoins with his technology... I will never pay a tax for bitcoin I think.

i don't really know about taxes in my country or in your country, but what i think is when you have tons of btc when the price is 5$ per btc it's not your fault if the price rise and make your rich. because you buy btc in just 5$. and when you not withdrawal you bitcoin to cash you just have BTC with cash value 5$.

That is simply not true. Since 2015 the IRS has been tracking ALL transactions. The tools for doing this get better every day and soon the U.S. will be in a position to start demanding the tax you owe. That includes back taxes and fines as well as any penalties, such as jail time. So many people are going to be hurt by this because they believe in whatever fairy tale they like from the internet. Make no mistake, you are being watched. You do owe capitol gains on your profits.

They will start with the biggest offenders then work their way down. Because of the blockchain it will be easy to scale up once they are competent with the software. Pay your tax or risk turning the investment of a lifetime into a prison sentence. 

READ:
https://www.chainalysis.com/

I think all of your income sources must be public and have a clear proof of its origin. Bitcoin is different, however, and almost all Bitcoin account information is not real, so it's hard for the government to check and tax the right people, the right organization.

I think yes that still therer is not any tax on bitcoin, but I think that those countries who have consider bitcoin as legal currency I think they can put tax on bitcoin.

Simply no. Bitcoin cannot be taxed for the reason being its nature being decentralized, thus any government institution or entity cannot ever control its regulation. Though way of taxing bitcoin is by implementing transaction fees when converting one's bitcoin to fiat, no less than that.

They want to make it legit money for that purpose.
They see a lot of tax being evaded while money is circulating.
Governments. They want to take over and gain something from this crypto currency which is valued with a large amount of money.
Crocodiles will always come and steps are being made for that purpose. It wont be long before that happens. News have been spread and perhaps a little more push with the price upward could make them decide faster.

If the government wants taxes then they will make laws.

If you kept the Bitcoin as bitcoin they should not be able to be taxed as this is a decentralized currency, meaning the government does not control its distribution and regulation.  Will that stop the government from trying to regulate it?  I doubt it.  However it will be difficult for the government to truly understand what they are dealing with a regulate it until they create their own cryptocurrency.

If however you change the bitcoin back into US dollars or any other form of government regulated currency they with for sure without a doubt deem that as something to be taxed.

It is crazy how much is taxed nowadays.

Nope. There is a tax in the US on ALL PROFITS. Bitcoin's legal status as a currency is absolutely irrelevant. Even something you profit from that is specifically illegal is subject to tax. The IRS did not create a bitcoin tax because it has always been taxable.

Capital profits are mainklt subhect to pay taxes but this rule can be changed depending on country. It is better to meet with lawyer and discuss this issues about crypto gains.

 :) Hey

Bitcoins are taxable or not this soley depends upon your country...
In many countries its not taxable..but In countries like India..they are taxable.. :D unfortunately whatever you earn through bitcoins its taxable.

If its.. legal and officially accepted by the government the chances of them being taxable is quite high...

And ...then there are some countries too where... Bitcoin are not taxable ! BUT if you convert them into fiat.. it is taxable... ;)

Just go through google scoop through the internet and try to find according to your country.. :D

Hope it isn't taxable in urs ;)

Right. The lawyer costs, to the truth, but to die sure of his. For two places I would not risk this problem alone, because you can recalculate. Happy daughter who had a similar situation, I believe in you. Regards!

You are taking everything in wrong way I guess! If you can earn something then you should have proof for it, I mean some sort of documents, invoices, purchase bills, etc to show your income proof. Then that doesn't matter whether it was paid in the form of bitcoin, altcoin or even gold. Whatever it is, it has got value and that's taxable unless and until government has not listed it in the regulation. As far as I know to take the bitcoin into real life you have to convert it into fiat and that means it will come to bank for which you will have to submit those things which I listed in first statement as income tax proof. So yeah it's gonna be taxable in any way.

Well, it depends on which country you are paying your taxes. Some countries have recognised bitcoin as a form of currency and have thus, made it taxable. Other countries, are still deciding how they want to take bitcoin as.

no, bitcoin is not taxable and you can not collect any tax from bitcoin. Bitcoin is built on the blockchain and due to that reason, it is hard to identify who you are and who own the address on the blockchain network. That is why many people and hackers love to use bitcoin. In somehow, we can say that bitcoin is something that against the government and it can easily destroy the government if the government can not find any way to stop this. Therefore, there are many governments have accepted bitcoin so that they can easily to access the blockchain and control the people

So basically this idea is only implied to those countries that have already legalized Bitcoin. If this happens then what of the concept of the cryptocurrencies, to be decentralized that is. You see if the government wants to have taxes in these cryptocurrencies then this only makes them centralized, and going to be manipulated in such a different way. I mean, the government can't have full control on this coins so, when they've legalized it, they took advantage of it and suddenly formed a bill to have a tax to this cryptos. A very smart move indeed.

yeah ... i feel tax when i send bitcoin in my friends even that is fee only -_-

No, you don't have to convert it into fiat. There are numerous physical things you can buy with BTC starting from a physical bitcoin and ending with land, cars and buildings. If you buy a physical item with it you are turning it into valuable objects that are not only easily taxable but also in many cases require paperwork. At some point you will have to pay taxes for your coins, unless you buy stuff on dark web.

Ya true. Bitcoin is not at all taxable one.Many billionaire and millionaire inverse in bitcoin because to hide that money from the government. If you have in Btc means.No one know how much bitcoin you have in your wallet. Since 1 BTC = 4700$.You can easily keep your source in bitcoin.

If we will think about the present situation, then Bitcoin is not yet taxable. But in the long run, if this will be considered as a means of payment in different transactions, it is possible. We all know that as of this time bitcoin is not known to many countries as legit, that's why the government of almost all countries didn't consider bitcoin as a real income. But in the future, when they will know and accept bitcoin as one of the means of payment just like fiat, then they will consider it as taxable income.

Not really. It depends where you bought those coins. Hiding money you have on your bank account in BTC is not really an option nowadays, when all exchanges require you to  register before moving large sums of money. Your banks are also tracking you, if you take a million USD and wire it to an exchange to buy BTC you won't be able to hide it. Also,  blockchain tracking software is already being used, so it's not like you can hide your coins by moving them around between addresses. I'm not sure if professional mixing services are still able to confuse the tracking software, but you have to take into account that Bitcoin was not made to keep your transactions anonymous and make you hide from the IRS.

Each state has the right to establish taxes and fees on its territory from any activity of its citizens, including income from transactions with the crypto currency. The procedure and amount of charging of such a tax should also be detailed by clarified state bodies. If a certain tax is not established by the state, the citizens have no obligations to pay it.

I think somehow the idea is to have it taxed once it will be converted into fiat in that specific area or country. I mean yeah how can the government control Bitcoin if they didn't even have it to get cracked. Bitcoin is taxable in a way that as I said, will be first converted and then use that specific amount based on the total Bitcoin you've earned.

I agree.Bitcoin is not yet acknowledged by the government so we won't have to pay taxes yet,and we are never really obliged to do it.Maybe once bitcoin would be adopted and would be globally use,then for sure all bitcoin users are required to pay taxes depending on our income.

As long as you keep your bitcoin on your wallet then your bitcoin can't be taxed by the government but once you move your bitcoin to the exchanger then your bitcoin will be taxed, simple as that. The point is income are taxable so if you earned profit by sold or bought bitcoin then it can be taxed, although by holding bitcoin you can earn profit i think you have a choice to pay taxes or not, as long as you keep them on wallet or something that government can't catch you.

I guess the business law and taxation should be amended first.  The reason behind the excuse of bitcoins not taxable is because we do not have a clear definition yet as to its existence.  Remember, China has banned the exchange for ICO because maybe they find difficulties in tracing transactions using bitcoins.  And one thing is that, in order for us to be trace, we should somehow register to them our BTC wallet address.  That is the only way I think they can regulate or control the use of bitcoins.

Actually in the essence of income bitcoin is qualified to be taxable but the problem is how to trace the ownership and is the person accountable in bitcoin will declare his earnings? The government need to study this first before imposing such tax

Does it mean Everything you have in bitcoin will be taxed? as what? INCOME TAX? it really sounds wrong for me. Sorry for my opinion. But i think they must have enough proof if the bitcoin was a "SALARY" and how about those people who just purchased bitcoin, will they be taxed also? If yes then this is a big problem and i don't think a lot of people will love this law/policy.

To the government it's all really simple.
If you have Bitcoins and convert them you subtract the amounts and what you are left with are your gains. These gains have a tax on them (usually something between 10 and 20%).
If there is a law in the USA that makes you pay gains even when you aren't converting it's a ripoff. People must be crazy if they are paying taxes based on the current value of their coins, even though they aren't converting them.

I think you are supposed to pay taxes on the value of cryptocurrency. I know was unstable as cryptocurrency is, I can't imagine paying on December 31st a tax on 100000 dollar alt coin and on January 1st, that altcoin goes down to 10 dollars.

Is it really possible I mean, I though Bitcoin is decentralized. So all along the solution to make Bitcoin centralized is to accept or legalize Bitcoin to that specific country. Considering the taxes, maybe you are right, because unlike Fiats, the wages that we get from it is that, 1/4 of that total amount of your pay will be tax. But if you are earning Bitcoin it is still probably have a lot more profit than paying those taxes.

I think it is not. Bitcoin is decentralized which means it is not under any government. So the income that its users and investors won,'t be taxed if I'm not mistaken. But if it is legal to a certain country and if it will be used as a currency there's a huge probability that there'll  be tax just like in the trgular currency or fiat.

If bitcoin is legalized on a certain country it isnt still be taxed but only to those services who do accept bitcoin as mode of payment. Bitcoin is a decentralized stuff and you cant impose taxes on it and if a certain person would decide not to pay up or declared on his earnings then you cant do anything about it. If you did able to use a certain service which would able to calculate on how much you do earn and that service do follow governments compliance for sure you would be taxed up.

No because we need more study about it. People are really into it maybe in the future should be taxable to also help in the government.

I think the bitcoin is not taxed. Bitcoin is not recognized by the government. So your income from bitcoin is not taxed. Bitcoin is only taxable when it is recognized as an official currency. If your country is taxing, you can still break the law

Apparently, the most counties does not regulate the use of bitcoins so it is not taxed. The government may see this in the future worth dealing with when bitcoins stabilize. But for now, bitcoins still have risks that the government won't take. This is beneficial to us bitcoin users because we can have more profit and less paper works.

It should be borne in mind that the tax can be taxed not by the crypto currency itself, not by its volume, but by the profit tax on operations with crypto currency. That is, as long as the crypto currency is stored in the wallet, it can not be taxed with tax. However, as soon as you exchange it for fiaf, this operation is already taxed and your profit from it is subject to taxation.

It's actually not as bad as you might think. First of all it's impossible for BTC to go that low in a day, or even a month. In case of a huge crash it would take at least a month for BTC to lose 50% of its value, provided that people were really into selling and there were no rebounds along the way.
Now, if you paid taxes from gaining something like 90k USD per coin in a year and next year it immediately lost something like 20% of its value before you managed to take your money out, you would report a loss and not pay anything. Next year, if the price went up you'd still be recovering from your loss and wouldn't have to pay anything until your profit became high enough again.
Also, keep in mind that in some countries the law is very lenient. For instance in GB you don't owe taxes from share dividends below £5k a year and personal allowance of £11k. So in other words either you're earning less than 11k and don't owe any taxes or you earn above that, but less than 5k from BTC and you still don't pay :D

I think yes only such countries can collect tax from bitcoin users, where bitcoin is a legal currency, like japan who have turn bitcoin as legal currency and therefore there are more chances that they will be collecting tax on bitcoin. i think it is in favour of the government to consider bitcoin as legal currency, because they can collect a big amount of money in short period of time.

Bitcoin taxes are like capital gain taxes, at least in my country. I need to pay 24% taxes from the moment I cash out any Cryptocurrency gains. Depends on your country though, just ask your local tax authority as I did.

Government authorities on our country isn't imposing tax to any bitcoin holders. Vey often that we pay any charges when we make transactions but not considered as tax, it is a service fees only. Because as far as I know, if you declared all your owned assets including btc to the government, then it could be included during their calculation on how much  tax you gonna pay for the overall amount. If not the, it will be free from any charges.

Yes I agree with you. The government has not yet made a tax code for Bitcoin they just put it into income tax. ;)

That's the only way they can do, your earning from bitcoin will be considered as an income and therefore eligible to be taxed, but, government can't tax bitcoin, they have no control over it.
and also, there's tax for local exchange company.

I once went to our barangay to get a barangay clearance. It was needed for my wallet particularly coins.ph for me to get the level 3. If you get level 3 you got to get unlimited withdraws. And I think that is great. And the person who is issuing the barangay clearances told me that having online jobs doesn't have any taxes and EVERYBODY can do that. So bitcoin is not really taxable.

yeah. same here, governments authorities on my county are not imposing any taxes to any bitcoin holder, our country bitcoin wallet provider has implement a fee but not considering as a tax. i think when the country wants to collect taxes from bitcoin holder to fully legalized bitcoin on their own country, and by managing of their own government authorities.

I am not familiar with US tax laws. But insofar as the tax laws in my country are concerned bitcoin income should be taxed. It shall be lawfully included in your assets since bitcoin is basically part of you wealth. Any income arising from it shall be subjected to taxation. But since bitcoin is generally strange here even if the government allows its existence and circulation, people can still easily get away from bitcoin taxes.

Yes of course,  the government can  take the bitcoin tax through the merchants. Bitcoin users will pay tax that included in the price of goods.

If you had 20k$ in 2011 you will be millionaire by now. I don't know about your country but in my country it is not taxable or even known.

Its really hard and a big challenge for the government, since they can't trace those person that are holding bitcoins. Anonymity of individual would protect to any bitcoin holders to avoid from being charges  imposed by the governments. That's why, taxes won't work for this kind of currency.

rise! necrothread, arise!

but in seriousness, some interesting thoughts above.

the real benefit is that bitcoins can be hidden from sticky gov fingers

whether or not that gets you in hot water is another story

but then again, proving that you have the btc or private keys can be difficult

if innocent until proven guilty, then all is good

however, i don't think the western democracies work like that anymore. they're corrupt, greedy, and only out for power. so, i wouldn't expect due process or justice

In my country it is that if you want to cash out your bitcoins you need to pay tax above that and that is a lot because you also have to pay the fees to trade bitcoin for real money than the tax on it to the government.

Bitcoins are not taxable because it is decentralized and the government cannot touch bitcoin unless the people that uses bitcoin in their country is forced to pay taxes by having a law that will tell people that they need to declare their income in bitcoin and pay taxes for it. Bitcoins as of now are not taxable and it is a great advantage because we can get our income in full.

I think in some country especially the US, the IRS are in the move to intervene in the decentralized way of running the cryptocurrency world. I've read an article at: http://www.investopedia.com/articles/investing/040515/are-there-taxes-bitcoins.asp which may be the answer of this topic. But here in our country, we are still enjoying our bitcoin 100% tax free. :)

I think before any government can make Bitcoin taxable they have to develop a system to check all transactions that goes through the local exchanges within their domain and even if this is established people can choose to trade one on one and you'll not necessarily know who owns an amount of bitcoins from your country unless it is spent through an exchange there and this makes it difficult to be taxable.

In itself, bitcoin is not taxed on its own, but the actions with it, judging by the position of the government of the Russian Federation, will (and perhaps already) are taxed

One of the advantage of bitcoins is not taxable. Exchanging your bitcoins to ico's does not require you to pay tax and it was a huge advantage since everyone is suffering from tax that is being reduce on their monthly salary. Bitcoin might end poverty if everyone knows it.

I think this is almost all over the country or every time we withdraw money from an exchange there is always a discount fee. this already includes taxes for the government. so I think this includes tax

is actually taxed on each transaction, but the tax is not the state but the company or broker bitcoin itself.

It depends in whether you local jurisdiction acknowledges btc as monetary property or personal property .. or if it is considered an asset / security etc. some places shrug it off like it isn't even income so that's definitely not taxable in that case.  I advise you to check with local financial authorities for sure.

There is no tax... the thing is you need to pay fees if you transfer them or pay the tax if you exchange them in to fiat or money... bitcoin has no tax at all but it will have if you exchange it or make transaction to pay the fees did you get it now?

bitcoin itself don't have tax but i think we can get tax when we want to send our money into our account bank because if the money is receive into our account, then in that time, our money can get tax by daily or monthly. beside that, this could be happen if we exchange our bitcoin in large amount and then we send it into our account and this could make the banks will be suspicious and maybe they will asked to us, where did we get the money.

Even a black market can arise in the exchange of bitcoin to fiat and taxes will be avoided completely. Theres no comprehensive system just nyet to make bitcoin taxable and until that is instituted bitcoin will remain as it is without taxation.

I think you will be taxed when you sell your Bitcoins for other fiat. For example you bought 100 Bitcoin at $5 each and now they are worth a total of $560,000 then you will be taxed capital gain of your Bitcoins if you happen to sell all of your Bitcoin stash, otherwise you won't be taxed.

Bitcoin is capital gains tax and not income tax that's why we can hold bitcoins for a long time without paying any tax on them for many many years. but if government wants then in near future Bitcoins will turn into taxable property .

In our country bitcoin is treated like a commodity mrkt. but because they not given bitcoin legal acceptance so they cannot charge tax till we convert bitcoin into FIAT. otherwise if we deal only bitcoin to bitcoin  it is not taxable

I don't think that you will be taxed even you will sell your bitcoin for the other type of currency because bitcoin is decentralized and taxing bitcoin is not covered in the law of the government so it is not that easy for bitcoin to get into taxing process because no one can dictate bitcoin because bitcoin is allergic to centralized people and it will still remain decentralized and even in the future, i can say that it will not get taxed.

It depends on each country's law regarding tax and this issue comes when you sell your bitcoin and transfer the money to your bank account. The profit amount is taxable as per every country local taxation laws.

I believe any profits made from bitcoin converted to fiat money is taxable.  Lets say you pay 50 dollars worth of bitcoin and cash out at 100 dollars, you would only be taxed at 50 dollars. I am not a tax lawyer but it should be profit made from bitcoin.

Different countries have different laws, in the USA you have to pay taxes on your crypto currency in the form of capital gains

If not mentioned in your country's tax law, It will be treated as income. Still contact tax persons from your country.

Any activity in the country that brings profits to individuals and legal entities is taxed by the state on a tax basis. No exception is the crypto currency. It is necessary to get used to the idea that eventually all states will impose a profit tax on financial transactions with the crypto currency. Crypto currency for an indefinitely long time can lie in a purse and it will not be taxed until it is exchanged for fiat or for it will not be made the purchase of goods or services. However, if such a tax is not directly established by the state, it is not necessary to pay it.

Yes; you are right that bit coin will taxable after the legalization and declaration of the regular and permanent currency of a country otherwise it will be taxable if anybody convert it into fiat. So according to present situation bit coin is not taxable at the moment.

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Taxation is the only way for the government to make money in bitcoin and if they will legalized bitcoin then it will be easy for them to control it because the bitcoin will be under to their law and they can charge taxes in a cryptocurrency exchange which is a big fish for them and they can get lot of profit by doing that so it is just like give and take for bitcoin.

Of course miner reward or transaction fee is the same as tax. In the case of government asking for tax for bitcoin holders. The easiest way to tax is via exchangers. Every transaction in exchangers is taxed. The bitcoin users may not complain about that policy if the tax applied is rational to the profit. Bitcoin merchants alse should be taxed. When the govt charges tax to bitcoin , it means that govt legalizes bitcoin. for some countries tax is  not applied in every transaction of exchangers but tax is applied in the volume of fiat currency in the country.

It difficult to impose tax on the bitcoin because it is not money for tax purposes. The IRS of the US once considered it as personal property like gold or stock. But when you are in business in buying and selling of the cryptocurrency, your gains can be taxed like capital gain rates. Taxation on bitcoin transactions may not be simple as it seems because it is difficult to determine the fair value of the bitcoin.

Not righy now. Maybe  in  a few years.

For develoing countries it migth be difficult to tax bitcoin transactions,but it easier for devloed country where every fiat transaction can be monitored.the possibility migth be difficult globally as transaction cannot be determined if it crytocurrency relted or not.

Unless bitcoin gets legalized and regulated in a country,citizens of those countries could enjoy tax free earnings from bitcoins even if it is of very huge amount.Just in india,we all still enjoy tax free bitcoin earnings as it has not yet been legalized in india so far.But once,it gets legalized,then we have no other way than paying taxes.Very soon,it is to be legalized in india and we would have to loose the tax free benefit.

In the us Bitcoin is approached Concerning illustration An product What's more will be accordingly not burdened unless you need to money out should fiat. It may be just that point that you are compelled with announce your wage Also a chance to be burdened on it Bitcoins themselves are not burdened or taxed.

If it will be taxable it will loose anonymity.

Bitcoins are not taxable in my country  yet but Bitcoin  started to attract attention because of hight price  and so many people started to talk about bitcoin in my country , i think my country may ask for tax soon , i think it will not be only my country and all countries will except bitcoin legal and they will want to get tax from bitcoin soon .

This, most likely, depends on the government of your country. Therefore, better find out the legislation of your country

Yes bitcoin is taxable. Not by means of the government is taxing but I guess that the miners were the one who are asking for taxes. The confirmation is dependable on how much btc you spend. If you will spend the high amount in sending then the confirmation of your transaction will be fast.

bitcoin is not subject to tax yet. but Russians and many other governments are trying to find ways to tax, even license the mining... https://www.bitcoinmarketinsider.com/russian-regulators-found-way-to-identify-tax-and-license-crypto-miners/

No, bitcoin is not taxable because it is decentralized. no one can know that you are using bitcoin or not. However, some exchange such as poloniex, collect fee from customer and they also collect information from customers, too. Well, in the future, if they want to work in the US religion, they have to reveal information to the government. I believe that the US will soon make poloniex to do this

No, bitcoin is not subjected to tax. The government will not be able to get any tax from bitcoin not unless they will be legalizing it which I don't think will be favorable to us users because that will be meaning that there will be other fees aside from the transaction fees that we already are paying.

I think taxation happens when you want to withdraw bitcoin into money because there must be a fee. now if I want to withdraw the money taxed 1%

Please at least read the thread before posting. Throughout most of the world bitcoin is taxable. Consult your local government.
https://bitcointalk.org/index.php?topic=7850.msg22769414#msg22769414

BTC aren't any different from cash, you can avoid to pay taxes, but you're not allowed to.

I think bitcoin should be taxed, and this is what the government wants.

I agree with this. Every transaction in bitcoin have taxes and so if you convert it to your local currency it depends on what legal wallet on your country. I qoute that "you can avoid but you have to." :)

I think the state does not have the right to take taxes from users who have bitcoins, because it is usually not a legitimate country. The state still prioritizes their currency, but does not recognize bitcoin as the official currency. So in conclusion, bitcoin is tax free.

but even goverment make bitcoin leagal how they can make it taxable??we donot need a i card to have a bitcoin wallet and we can buy bitcoin by cash and also with physical things from may dealers ,its not just we have to do it with banks,there are several other options.So i donot think bitcoin is a taxable entity government cannot control it even if it legalize it...correct me if i am wrong

One question, how about tax in other country like Malaysia?

Yes bitcoin is taxable. But I do not know if Bitcoin is paying any taxes to the government at this time.Because the government does not give any legitimacy to the government if it does not pay taxes to the government in this regard.For example, this problem is happening in my country.

Yes Bitcoin is taxable but it depends on the legislation and the agency department rules of your country.

Indeed, if they want to apply a tax on bitcoins, they must legalize it, however, in order to do so, they need to manage it well, and that is something that not every country can.

Hmmm.. Your topic name is not accurate of what's inside your comment. Bitcoin is always taxable when you withdraw it into your local currency. It depends on the wallet.

Very well said. People usually misunderstand the context of TAX. Most people think tax as the part of an amount of a good/service taken by the government for the improvement of government projects. When these people ask: IS BTC TAXABLE, I think what they mean is: IS GOVERNMENT GETTING A PART OF BITCOIN BEING USED BY PEOPLE?.

At some point, bitcoin is taxable in the sense that miners are being paid in processing the transactions done by people who use bitcoin.

And the reason why some countries/governments do not yet fully legalized bitcoin is that bitcoin is not taxable by them. Some banks have bad feelings about bitcoin because they are losing a lot of income. Most people prefer to use BTC than banking nowadays.

In the US, people pay tax with the income that bitcoin brings. This is the only country with such stringent laws

it's all about governments who decided to give tax to their citizen. Bitcoin itself has no tax in fact it's decentralize governments won't control bitcoin. users are the only one who will control for it.

No its not and that is one of the advantage of bitcoins, The only problem in bitcoins is the exchanger that has very expensive gas when you exchange into their sites but some of them are also fair enough to their fees.

This is a good article about How Bitcoins are Taxed: https://www.thebalance.com/how-bitcoins-are-taxed-3192871

Here is a preview of the article:

What is Virtual Currency from a Tax Perspective? Here's What the IRS Has to Say
Definitions:

- "Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value."
- Virtual currency "does not have legal tender status in any jurisdiction."
- "Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as 'convertible' virtual currency."
- "Bitcoin is one example of a convertible virtual currency."
- "Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies."

Tax Treatment:

- "For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency."
- "A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received."
- "Transactions using virtual currency must be reported in U.S. dollars" on the tax return.
- "Taxpayers will be required to determine the fair market value of virtual currency in U.S. dollars as of the date of payment or receipt."
- "If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars ... at the exchange rate, in a reasonable manner that is consistently applied."

Many countries still not legalized bitcoin because they will not get tax money from bitcoins, so bitcoin is tax free. Generally  government expects to generate tax from different corners, if they do not get any profit from it,then how can they give permission for legalizing the digital money. 

Technically, it is hard to tax bitcoin. Because bitcoins are anonymous.

But when you convert bitcoins to euros or to USD, the capital gain can be taxed.

In France, for example, any income must be declared and will be taxed.

So if you bought bitcoins, then sell them for profits, you must tell it to the french IRS.

You can't just tax bitcoins. Bitcoins are just untaxable because no one owns all of the bitcoins in the world to impose such tax on each bitcoins. However, the earnings you get from bitcoins or the dollar value of each bitcoin can be taxed by some government since it is their country's currency.

Since bitcoin isn't controlled by anyone or the government, it's probably impossible to be taxable. Bitcoin is a self sustaining currency and isn't affiliated in the government by any means. Though if someone declare this in their itr or property for example it will become an asset and will be taxable.

It defers with your jurisdiction, for my country bitcoin isn't taxable well not that I know of

For now bitcoin is not taxed. However bitcoin and other crypto has a tx fee only.
If in the future bitcoin is considered as a legal asset, maybe it can be taxed.

Well it depends on the country, in most places bitcoin isn't regarded as currency so it's never paid to tax it

How's that? If Bitcoin is not a currency, you may still have to pay taxes on it. It can be considered as property or commodity, and then you will have to pay the property tax when you sell your bitcoins.


In many areas you still have to pay income tax.

In my opinion, bitcoin is not taxable, because it is only krpto currency

hi and welcome to bitcoin :)

if the bitcoins were held for more than a year, long-term capital gains tax rates are applied. ... Thus, individuals pay taxes at a rate lower than the ordinary income tax rate if they have held the bitcoins for more than a year.

thankyou :)

Yes bitcoins can be taxable

Currently united states don't have any specific tax on bitcoin or doesn't declare BTC to be taxable separate from other income. So you can pay a combined tax on it. I mean you can club the btc income along with your other incomes and calculate normal tax as per the slab rates on it.

As long as the government of your country of residence does not know that you have little food then it will not be taxed. If the government wants to take taxes from bitcoin ownership, the government must make flexible and complicated regulations, because bitcoin prices fluctuate.

I think there is no tax on bitcoin because it's an online job but what others say is there. Whenever bitcoin is bought, sold, or traded, there are tax impacts. We'll discuss how bitcoins and other forms of virtual currency are taxed, and point out record keeping requirements and tax planning techniques that can be utilized.

Bitcoin are not taxable because it is decentralized and processing cannot relationship bitcoin unless the people that uses bitcoin in their country in motivated to pay taxes by having a be responsive that will accustom people that they mannerism to evaluate their pension in bitcoin and pay taxes for it. bitcoin as of now are not taxable and it is a pleasant advantage because we acquire our allowance in full.

Technically saying the answer is "No", bitcoin works on a algorithm which is excluded from the tax system. We generally need to pay fees for processing our transactions to support the working of the system, leaving that there are no extra expenses like taxes on bitcoin which is a perfect example of a decentralized system. But in the recent days government are trying to tax bitcoin, and is misconception that bitcoin is also taxable, but one should realize that they are only imposing taxes when bitcoin will be converted into local currency otherwise they cannot track the transactions of particular user.

Bitcoin can't be taxed because you need to track or spot the guy made the transaction to tax him . But in Bitcoin you can't do that suck as thing.

As far as I know if you have a business where you use Bitcoin as a form of cash then it is taxable. What I know also is that if you are exchanging it via exchangers and withdrawing it through your bank accounts then it is not taxable.

NOPE.
it will be hard for any government to introduce tax to bitcoin.
since they will have to pinpoint whose the owner of it first before they can charge anything.
but whenever a bitcoin owner turns converts his coin to cash then this will be the time that the government can impose taxes.
through the exchanges.

The IRS said that the bitcoin should be treated as an asset or an intangible property and not a currency, as it is not issued by central bank of a country. Bitcoin's treatment as an asset makes the tax implication clear.

Of the gov wana change something they will find an excuse to tax bitcoin. At the moment is not.

Well yes if you lived in the USA you would be in a bunch of trouble. Last week congress is trying to or successfully passed a law that makes it illegal to conceal bitcoin in the US which means you would be in hot water. But it does depend on where you live because taxation is 4% in the Netherlands I believe 0% in some weird island nations but in most 1st world countries you should pay 15-20% tax as it is capital gains.

https://www.thebalance.com/how-bitcoins-are-taxed-3192871

Bitcoins are not considered as a form of currency but a property. And yes it is taxable. Any business transactions in bitcoin are subjected to tax.

Every country has its own rules on what and how to levy taxes. I do have to smile at the OP when BTC was $5. If we knew then, we could have put a few bucks aside.

It's your choice because today the world is alarmed for the pump of bitcoin and it has a possibility to ruin the circulation of money in your country also can affect the economics so they allow tax like that.

Well some countries right now are trying to impose a tax on using bitcoin. I heard US and UK have implemented a taxation rule in owning bitcoin. Some countries still ignores the presence of bitcoin.

Bitcoin is anonymous and highly secure, so checking transactions is very difficult. So I think that in order to levy bitcoin, the authorities need to study ways to levy taxes on bitcoin transactions.

Well the government can always find a way. They always do. US and UK already have a concrete plan on how to impose a taxation on person using bitcoin. Try to read this article. https://www.theguardian.com/technology/2017/dec/04/bitcoin-uk-eu-plan-cryptocurrency-price-traders-anonymity

You're right if that's the agreement between two parties but the point is when the government want some counterparts or enough shares just like having taxes on bitcoin I don't think if it's possible. As we already know bitcoin was designed which decentralized has been occurred that no 3rd party involved just like any government sectors or banking system, I would say that it's impossible to have taxes as of this moment. Maybe, if the government will study deeply the situation of bitcoin as well as the concepts on it, definitely  it's possible to have a taxes which for sure it will have many debates and sessions to discuss on how to implement that issues.

the government will try to apply the taxes for every people which owning bitcoin but it will be difficult since they need to verify every transaction that is happening on blockchain and it is not easy to them. I think maybe they will only see from the transferring fund into every people and maybe they will interrogate people about from where the fund is so they can track down and analyze if this person owns bitcoin or not. but I still cannot think how they will do this and I don't want to think anymore.

Bitcoin is getting more and more importance with the increasing adoption and increasing user community. With this in regard bitcoin has been under study by the governments around the world. Possibly this will cause a taxation on the use of bitcoin, because governments too try to benefit through the same.

Bitcoin can be taxed.
In my country if you sold your bitcoin the government will tax 12% on the value.
At the moment you will withdraw your money 12% is already deducted.

I agreed. Bitcoins should be taxable.

In other country maybe they put tax in bitcoin. But for now in USA the president they dont tax bitcoin because for now bitcoin is promising currency.

USA is already imposing tax for persons who uses bitcoin. USA are creating a law how to put tax in bitcoin. Sad for those who live in the United States. LOL

If you have Bitcoin in the form of cryptocurrency than you won't be fines but if you want to cash out Bitcoin in US you'll be taxed. Unless it's a commodity you won't be Taxed

It's hard to levy a tax for the time being, because it's all a centralization of anonymous transactions. But I think the government can levy taxes indirectly, they can make those digital money exchanges pay taxes, and the exchange can increase transaction costs.

I don't think so. Not being taxable is the one of the thing I like about bitcoin. The government can't get to us, the bank can't to us. Everything here is done by user to user.

Bitcoin may not be taxable directly, but the profits earned with it definitely are. In most countries you will have to pay an income tax on such earnings. Whether they will be able to catch you for tax evasion if you don't pay this tax is another matter, but in the US you'd better not look that way. The IRS is no fun to play with.

Yes I totally agree with you.
Bitcoin is taxable but not in simple words tax.

But how to determine if there is a profit, or vice versa, what is the loss? Does a tax credit arise? In what size?

If bitcoin is legalized in a certain country it isn't still be taxed but only for those services who do accept bitcoin as a mode of payment. Bitcoin is a decentralized stuff and you cant impose taxes on it and if a certain person would decide not to pay up or declared on his earnings then you cant do anything about it. If you were able to use a certain service which would able to calculate how much you do earn and that service does follow governments compliance for sure you would be taxed up.

Taxes can be taxed bitcoin for reasons. Bitcoin is a virtual currency that uses cryptographic encryption system to facilitate secure transfers and storage. Unlike a fiat currency, bitcoin is not printed by a central back, nor is it backed by any. Bitcoins are generated by what is called mining-process wherein high-powered computers.

Any regular country with taxes, will try to get at least a part of it's income through taxes. The nation should pay taxes, whether it's income or wealth. With bitcoin it may look difficult but in some countries the exchange can send the information of people having cashed their Bitcoins for a certain amount.

Exchanges or purchases of virtual currencies represent the business risk of investors and investors' money are not protected. ... There is no capital gains tax chargeable on bitcoin, however bitcoin mining is taxed and businesses selling goods/services in bitcoin are also taxed.

2011 post ... OMG ... if i go back on that time ... bitcoin price only 5 usd ..

i don't know how govt make the rules bcz their is now way to monitoring transaction and for whole worlds its same

Bitcoin is decentralized and only answerable to the market forces and being this way government has no hand in Bitcoin control and not taxable. You as a citizen may be asked to pay tax by the government if they know that you have a job doing. But as a trader in cryptocurrency and even forex nobody is asking you for tax.

Yes here we would need to declare any altcoins profits. I have just contacted an accountant to advise of paying income and/or capital gains tax. I'm happy to pay tax rather than get caught out down the line. I would advise anyone to do the same really.

http://www.chicagotribune.com/g00/business/ct-biz-bitcoin-gop-tax-bill-20171221-story.html?i10c.encReferrer=aHR0cHM6Ly93d3cuZ29vZ2xlLnJ1Lw%3D%3D&i10c.ua=1

They can not put tax in bitcoin directly...
But some countries charge tax for some transactions in cashing bitcoins....

I don`t think that the income from btc is taxable at the moment because as I know the main thing of it that brings profit is to be non taxable, but If they see that your bank account has increased suddenly without a reason than there would be a profit.

If government wants to tax it i am pretty sure they will find a way to do so but currently it is not taxable unless converted to fiat.

USA has been accepting Bitcoin as legal currency for trading in market stock. So if there were in USA which regulating it about trading using Bitcoin in any platform include market and personal profit are both charged tax which need to input taxed income in IRS, we should commit to obey it. We need making some good example by community which Bitcoin are acceptable and can be comfort with regulation tax.

No and Yes
No because it will be very difficult for the government to track our asset online, it is possible but too much works to be done even for a single person, so my answer according to this reason alone is no
Yes, because when we withdraw our digital asset to fiat, it will be automatically taxed by the exchange. I am not sure it this applies to other countries, but our local currency this rule applies, which is 1% for every withdrawal, considered quite a big amount in here.

Now there are a lot of countries have begun to for COINS formulated relevant tax laws, it clearly for the currency the player is not a good news, if the tax, the income will be greatly reduced.

Nope. Bitcoins aren't taxable. Remember that some countries make bitcoin as an illegal but bitcoin is not an illegal. They say so because government wants to get taxes from people but in bitcoin, they don't get any taxes from people whose supporting bitcoin.

If the government imposed a tax, then what kind of tax should bitcoin be taxed? If investment loses money, still need to pay duty? That sounds unreasonable.

I dont think soo, but for me its better for us in the bitcoinworld that bitcoin is taxable because if government does it, it means government are supporting bitcoin and it became acceptable in that said country

Yes it is actually taxable. Why can i say that? Because in other country bitcoin are already legalized and the government recognizes bitcoin also and i think that the oportunity for the government to exert a particular tax to any bitcoin earners or any incomes coming from bitcoin.

Bitcoin will be not taxable bcos bitcoin is not as a reg job so government will not to tax bitcoin now.

In the United States, as far as I know, the tax on profits from operations with crypto currency is levied only on transactions equivalent to more than $ 600. However, most likely, this is voluntary taxation, since it is rather difficult to control such operations.

For some country it is not still taxable, that's why there are some countries that don't want bitcoin because there is no tax there. Bitcoin is decentralized, it is really volatile. So some governments don't want to legalize bitcoin.

If you know that Bitcoin is Decentralize it can't be happen that this virtual currency was taxable.  Because it means, none of the government in each country have the power to control bitcoin, of course they don't have any authority to do it due to all government are  centralized categories.

itcoin is indirectly  taxable overtime, when you convert you BTC to fiat, government tend to tax your earning one it is in the tons of millions you gat to  register as an investor, from that you tax will be calculated base on what you earn.

yeah the key is on decentralization. bitcoin will not be controlled by anyone including the government. so the government will not know who are the people of their country who use bitcoin, so the government will not be able to give you taxes? after all, bitcoin is anonymous. so bitcoin will not support to be given tax to its users. that is the logic

I think if you convert enough BTC into cash, then you may be subject to taxes.

In my country the BTC per say is not taxable but the income is so from sums bigger then 10.000 euros I think you will need to pay a tax as you need to do it for all other incomes. From my knowledge In the US there is a similar law so I think that you will need to pay some taxes from the income.

Directly or indirectly bitcoins is taxable in its own context but you might not see it as taxable.The miners fees and transaction fees by exchanges can indirectly categorised as taxable fees

Yes it is taxable if the government has been legalize bitcoin in their country.
But so far i dont think so. Taxable is not really bad i think. I will support it as far as i have more income from it.

even if the government want to check every citizen bank account, they cannot found people who use bitcoin and we are still hiding behind the wall. or if the government make a pooling to try to search people who use bitcoin, I don't think that people want to tell the government that they keep the bitcoin for their own purpose. but I still think that the government will use every way they can to know this and they still want to make taxes in the future.

You said that bitcoin is not taxable but the income in fiat is taxable. If it the question then i agree.
I was thinking that the income from bitcoin is taxable from the op question.

As what we (bitcoiner) experienced, we receive our bitcoin earnings without tax and that is the reason why other countries ban bitcoin because their government get nothing from bitcoin.  And I think, it is hard for our government to detect and monitor who has ton of bitcoins to charge for tax.  Beside, you cannot consider bitcoin as an income if it is not  yet converted into flat.  So, I think bitcoin is not a taxable asset.

I think when you sell bitcoin out of money, you will be taxed! But, if you deal directly with the seller and the buyer? This is a difficult issue!  ::) ::)

I think the bitcoin itself aren't taxable but the monetary value of each bitcoin is taxable whenever you cash-out your bitcoins for dollars. That's probably how the government would issue taxes on bitcoin profits. If somehow the government does tax the bitcoins itself, then bitcoins are no longer decentralized.

Well as of now bitcoin is no tax, maybe theirs a time for that they will make it taxable but for me tax is useless, we people always searching for the better one then the government always make people down by the tax, thats the big problem for the philippines right now and as the president searching for taxless the economy would be good.

Well, the process is pretty easy and straightforward really, and it is the same as with stocks, for example. Let's assume that you buy 1 share of some company at $1,000 and then the price rises, so you sell it for $1,500. Your profit is thus $500, and this is the amount which you should calculate your income tax on after applying tax deductions if there is any.

everything including taxes must have been calculated carefully, the government will not necessarily impose taxes for no apparent reason,
then we wait for the reason the government taxes on this bitcoins

No I think bitcoin is not taxable as long as you didn't convert it into cash or you sell your bitcoin

The United States has decided to a tax on encryption currency, but the tax is obviously too expensive, I don't think it is reasonable, it completely changed the pattern of now, but it also indirectly admitted that the encryption.

Could you explain me exactly, how RSI will levy taxes on cryptocurrency? They say about differentiated system for holding a coin less or more...

It can be taxed only if you convert bitcoin to fiat. Bitcoin transaction is not taxable unless its mandated by the country's government and if its already allowed to use bitcoin as payments though in my country its not yet regulated.

No they are no taxable. They are only taxable when sold for fiat money

do you know why we pay tax? how tax work?

we pay tax for interest on state debt.
never pay tax on your investmant or your bitcoin. but you must study how to avoid tax with legal...

I think in every country the governament will fix one amount for tax free. If your income does not cross this limit, you no need to pay any tax to governament or else you must pay. To avoid paying tax to the government, you can open accounts for your all family members, and whose income less you can use those accounts and convert your BTC to fiat you can save your tax amount.

This is so true, not to mention other tax from almost everything our money goes into, even though it is not taxable whenever you earn bitcoins the tax from basic commodities and services from day to day is enough for me to feel drained.

In my country, you can only pay taxes on assets gotten through btc investments and profits.

It depends on the country where you live. Different governments have different solutions and taxes for handling bitcoin. But over all bitcoin should be seen as an investment right now, with taxes if u trading it a lot, and swap it into real money. Some special situations exists, where it is tax-free.

Of course that they are taxable, but it all depends on how are you going to withdraw your bitcoins.. If you are in the US they are going to tax you all your bitcoins with aproximately 15% of what you cashout (max 25k per year)

Tax season can be confusing enough with complicated rules about what types of income are taxable and which are not, and there are bound to be questions about how Bitcoin relates to taxes. However, users will have to look into the tax requirements for whichever country they are paying taxes in and sort out how their home countries classify cryptocurrencies like bitcoin. the Government to put tax because is bitcoin is anonymous, they can not distinguish the owner because of its hidden nature.  Transaction seem to be charging according to the rules.

Yes, should be the currency of the investment to set the duty-free limit, you make money the country wants to levy tax on you, so if you lose money, and will not give you free, this is obviously not scientific.

taxable is a trend as more and more people get involved in.

Yes, governments right now are making moves on how to impose tax on bitcoin. In the US they already had made laws on how they can get tax from bitcoin and I heard UK have also made a law for it.

When do you plan to return the account you stole?? pginvest is not your account!

Not at the moment, I believe. I think the government would have to legalize bitcoin first for it to be entitled of tax. It is not legal to tax something that is not legalized nor identified by the government as something that can be really stable to apply tax. This is good as well because it doesn't lessen the possible earnings.

This is probably one question that you don't want to ask on forums.  Different countries have different laws, and there is a lot of nuance about when you bought/sold/mined it, whether you have a company set up, etc etc.  Spend some money and talk to an accountant.  It will be a good investment for you.

Even though I live in America, I'm sure the government will find it difficult to determine the tax on bitcoin. Bitcoin has a complicated system, the government has to make regulations about bitcoin taxes and definitely take a long time. So now bitcoin is not taxed.

There is no tax on Bitcoins, but you definitely have to pay the taxes once you convert Bitcoins to cash. This tax can be ordinary income tax, if you are not claiming long-term capital gains. As such there is no specific tax law regarding profit from crypto-currency. But right now, the taxes which are applicable on the sale of digital assets will apply on Bitcoins.

Since it is decentralized, I think it is not. That's the huge difference between Bitcoin and fiat. Fiat are centralized so governments are able to put a tax on each of the transactions. So since it happened that Bitcoin is decentralized, governments will not be able to tax every transaction. There are ofcourse fees on the transactions but I doubt that it is tax since no one is taking control of it.

Not only converted but it will get higher than this and will be huge investment for all people. For me if bitcoin will be taxable then it will get high and become legally acceptable so it is going to be beneficial for bitcoin and will give it benefit to government as well. I know bitcoin will be acceptable by all people and bitcoin users will pay for tax on time and will not delay this kind of act like paying for tax.

In my country,  if you have The Bitcoins you didnt pay the tax for your Bitcoin.  Maybe you must pay when you changer your Bitcoins to $

Hi there shooter_mcgavin! As far as I know it hard to impose tax to bitcoin alone specially if you are just mining it on you own. What I think that could be taxable is the profit you generate from trading bitcoins. You could see some exchange that reminds people to pay tax, some even ask for your tax reference number. This shows that the exchanges is currently or will collect a certain amount that will go thru as a tax. There could be some company that will follow this steps but by now, I seen none, and hope some don’t follow.  ;)

The topic for May 2011, which discusses taxation of bitcoin in the US, when it was still worth $ 5, was accidently caught on the eye. It seems that it was recently, but what is the difference in the price of bitcoin.
    And only in 2017 the US government finally decided on the taxation, which did not cause special joy to its citizens. We can say that it is one of the most stringent in the world.

There's no way I can do it, I've read that in other countries they're being pursued by police intelligence just for an excuse of unnecessary energy expenditure. What do you think about this?

I think they can take taxes from Bitcoin using exchanges, we pay for fees so maybe all exchanges takes a little bit of that to just pay for the taxes we take.

If your morals allow you to not pay taxes then no bitcoin is not taxable, since its not traceable unless you put your information to the public and even then, the law can't persecute you since they cant be sure if that wallet might be yours or not. And that's in my opinion why most countries are hesitant about bitcoin knowing it would cause a tax evasion chaos.

It really depends on the country where you are living because sometimes the country has a law for bitcoin that they are requiring tax for you to pay so you can legally transact with bitcoin but most of the countries are still not taxing bitcoin because they still not paying attention to bitcoin because of its risk that is caused by the volatility.

For example in Belarus soon individuals legally will not have to pay taxes for their bitcoin activities. But for legal entity it would be an asset and who knows? Everything will depend on your accountant))

To the extent I know it difficult to force tax to bitcoin alone uncommonly on the off chance that you are simply mining it on you claim. What I imagine that could be assessable is the benefit you create from exchanging bitcoins. You could see some exchange that reminds individuals to pay tax, some even request your tax reference number. This demonstrates the exchanges is at present or will gather a specific sum that will go through as a tax. There could be some organization that will take after this means however at this point, I seen none, and expectation some don't take after.

Still the governments is thinking of how to tax bitcoin and in what category to tax. As of now there's no tax laws implemented for bitcoin and there's no tax imposed to any bitcoin users I think. May be we need to have a thorough research on Japan tax law on bitcoin, since Japan have legalization it. Digital money is normally considered in law as property in some countries.

I think we should draw the distinction between property taxes and income taxes. Bitcoin may be taxable as property but you should sell it for fiat to be taxable as income. And this is where you can easily get caught if you aim at tax evasion. They will see that your living standards don't match your official income, then they come after you and start asking questions. Not something that you would be eagerly looking for, especially in case of IRS.

It depends on what you do with it, but the general answer is yes

No. Bitcoin is not taxable. First of all, it is not owned by the government. This is decentralized, the government do not own any cryptocurrency or virtual currency. If they want to implement tax, they should have a reasonable excuse.

I think this is what the topic host ask. So the anwer for tje question is the income is taxable.
I am not us citizens bu i am interest to know how it could be if we have imcome from bitcoin. And maybe it will applied to my country too.

Crypto money has not yet had a legal basis and the transactions carried out within this scope are not under the authority of any official authority.
Some business models based on crypto money, big profits are structured in the form of vacations, misrepresenting the lack of information and causing significant financial loss.

And then pension in crypto. Heh, some seniors  are already in it🤣

in bitcoin there is no tax you easily get full money and take profit

I think if the currency tax can help governments to accept the position of the currency, which will be conducive to the currency of the promotion, can raise public awareness of it, more easily accepted by governments, it is conducive to the COINS

yes but it is difficult to manage and bring into practice, and maybe there is not enough will from the side of governments to tax cryptos.

They are taxable in some countries but just like any other taxable good you do not have to pay tax for it if you know what i mean. ;)

As of the moment, I really don't think that bitcoin is taxable. In my country, whenever there is a bitcoin transaction, the reduction falls on the people who manage the wallet and not for tax. So, I don't think that bitcoin is taxable yet. In addition, the government didn't really made it legal yet.

If you transact directly with BTC, it is not taxable but when you convert to fiat, then it is taxable.

There is law drafted to direct tax the btc. So by default btc is a multimillion business without tax that’s many government anxous about it.
Some of the government apply the existing law on the payment.
 

That is the reason why people love bitcoin, they earn income without paying taxes. The very nature of blockchain technology is to cut off all intermediaries including government. Some people even consider that cryptocurrency might destroy the flow of economy. We still are not sure how are they going to tax it but they are entitled to tax our income since we earn privileges from the government. But personally, I dont want to be taxed.

You will not get in trouble as long as you don't declare your bitcoin. The very nature of the crypto industry especially in bitcoin is that we are all anonymous. They don't have the right to claim on bitcoin because it is decentralized.

I don't know what type of tax bitcoin will be taxed, but it does come from a country's point of view, which is a huge market, and taxes can bring good revenue to the country.

even if you declare you are a bitcoin user though. the government will not be able to ask taxes to you. bitcoins have decentralized facilities so they will not know which bitcoin address yours is. and how many bitcoin addresses do you have. so arguably bitcoin is a great way to hide wealth and your income and avoid government taxes

Yes, I hope that day appeared later.

In countries that bitcoins that bitcoins are being regulated, bitcoins are being taxed when they are sometimes bought and being sold and when you are buying things at retailers with bitcoins, you are going to need to pay tax on the product that you are buying.

I have also thougt about that idea. The government couldnt manage bitcoin so i think there still are people who are asking for taxes for them to be able to have their profit and for the system to function well. This idea really helped me to understand more the system and I couldnt agree more about it. It is true that sending high amount has a quick process of confirmation of transaction.

until today there is still many countries does not recognise bitcoin as legal currency, so how bitcoin became taxable. but, it is still not imposible because there is tax base on pernonal income. so, as long as bitcoin not converted to (real) currency like dinar, dolar, riyal, euro etc... it still possible to avoid the tax.

No. And this is the beauty of the product. You pay for electricity (gas) to make transfers and then get paid. Just because I use the internet and get funds should not make it taxable.
It is like saying because I watch the television, I should be taxed for getting a benefit for it.
If however, I buy a car or house then that car or house can then be taxed and not the funds.....

For some countries where bitcoin is not yet legal, bitcoin is not taxable yet. But for some other reason, withdrawing bitcoin or in order for you to use your bitcoin in other country, you need to convert it first.

In our country, bitcoin is not taxable when doing transaction like btc to btc transactions, but converting it to our fiat and our fiat converting into a bitcoin , then it is another story. Bitcoin in our country is being regulated by the government, groups or companies that are converting bitcoin into our fiat is taxed ( i don't know if it is heavily because banks in our country are heavily against bitcoin usage) by our government at a certain level. That is why when buying a bitcoin there is a huge gap with regards to selling one.

Bitcoin is not invented to be taxable because it a digital currency.
But I think people should pay taxes for trading cryptocurrency if their country instead on that, I see nothing wrong with it.

When you are watching the TV it is hard to estimate how much pleasure you get or how long you are watching it. This is not the case with bitcoins, where it is possible to see how much profit you made with them and how long you kept the coins. I mean it is not very difficult to calculate your income in dollars. And this income is taxable in many countries.

It is taxable. Individuals pay taxes at rate lower than an ordinary taxable income if they have held bitcoins more than a year.

Yes, I agree if the Government wants to regulate taxation of Bitcoin. The main requirement is Bitcoin should be legalized in advance. In order that the Government had the right to this.

If bitcoin is to be launched in the public and be taught to colleges, i think the government will give taxes to bitcoin. But for me, i dont want bitcoin to have tax. It's better on how bitcoin is working now. As bitcoin is a digital currency, i think we cannot avoid having tax here.

if I do not think because the government has not legalized bitcoin as a valid payment instrument in Indonesia, but if the government legalize the bitcoin it can be taxed by the government and I hope in the future the government will make bitcoin as a legal means of payment

It all depends on the particular national laws.

Bitcoin is made using decentralized system so theres no method on how to regulate taxes, but there are so called fees for every transactions. Maybe some organizations or institutions that legalized bitcoin as a payment method they have such thing as taxes but not the national government of a country.

Well technically, it really depends on the country's laws that you are staying in. Normally, bitcoin itself is not taxable but mining is. A lawyer at our BSP (Central Bank) told us that bitcoin mining falls under the 'other income' bracket thus making it taxable. But I am pretty sure that most people earn their bitcoins through investments, trading, campaign signature or even gambling.
Also do note that the government will only tax something that they can control. Bitcoin in itself is decentralized, meaning no government entity can regulate it.

Whether tax applies to cryptocurrency depends on the way it is considered in such a country or region. In the USA for example, bitcoin is considered a commodity rather than currency. Tax may only apply when it is being converted into fiat money.

Yes, they are , but it depends on where are you located at the time that you want to withdraw your bitcoins. In the US, if i am not wrong ,you need to pay 15% of all your earnings, maybe a little bit more if you are not paying your full taxes.

The fact that it has not become cash at hand saves it from being taxed, just that the government may come up with any policy at anytime to compel bitcoin tax

bitcoin are not but when you change bitcoin to fiat then you will taxable. but if in a small amount i think you will safe. i dont think bitcoin can be taxable as i know. maybe in us it might be. not very sure but my country is still safe from tax.

Temporarily do not need to pay taxes, but also legal. In most countries, Bitcoin is not defined as a currency and is therefore not subject to the relevant tax laws.

No it is not and never really will happen as no one is really in control over bitcoin, bitcoin is decentralized and therefore cannot be taxed by more centralized government and other institution like banks.

I hope someday Bitcoin will be taxed due to the tax Bitcoin on illegal right in the country that have implemented taxes on bitcoin, and we also do not need to fear again if bitcoin in forbid in the country again, with the tax Bitcoin would be better.

Until now the country where I live has not made a regulation on bitcoin tax but if in the future the government starts to make my new rules I obey them To keep harmony between government and society always in its best condition.

The topmost tax slab in the United States is 39.6% and you need to pay at that level if your total income exceeds that level. The American tax laws regarding crypto-currency have become more strict and cumbersome. Perhaps it will be a better idea to travel to some other country (such as Bermuda or Canada) to sell your coins.

Bitcoin is not taxable because it is not owned by the government, it is maybe that's why some country banned bitcoin and altcoins for this reasons. I don't really exactly know if that is their reason but maybe one of the reasons why they need to banned it to their country.

As far as I know in today's generation bitcoin is not taxable because we know the fact that it is a type of currency and no such currency needs to pay a certain tax.

how we know we must pay tax from profit our tax? well i am not happy pay tax. but  we can avoid paying taxes in a legal way. if we use illegal ways we will go to jail.

This year is going to be a rude wake-up for a lot of Americans. The IRS has plans to begin sending enforcement letters to cryptocurrency holders. The rules are in the link below. And yes, they apply to all Americans.


https://www.irs.gov/pub/irs-drop/n-14-21.pdf

https://www.chainalysis.com/

If you are USA citizen, listen to Laura Shin podcast from Jan 23. It's named as 'The Tax Rules That Have Crypto Users Aghast'. You'll find out a lot of interesting facts about cryptocurrency regulation in U.S.

In my opinion, bitcoin should be paid tax. After tax payment, bitcoin can be officially recognized. Tax payment proves that the state recognizes the existence of bitcoin and can develop for a long time.

In the eyes of the IRS, cryptocurrency is property like shares or physical assets. That means you pay the long-term capital rate (typically 20%) if you sold it after a year, or the ordinary income rate if you sold it before then.

This is an old thread, but it's still going on.
How can I prove IRS my income if I have staked (POS) my coins in my wallet.
Bank and exchange statements maybe would be ok, but what about transactions in my wallet.

Are bitcoin taxable? I think its hard to impost taxes (if by chance), since it is volatile, value is not permanent and steady that make it difficult to determine its value and possible income.

bitcoin are mostly like having a tax because of very expensive fee when you withdrawing and gas when you deposit but bitcoin never have a taxes but a miscellaneous

Basically no unless you volunteer it up to get taxed. So if you can keep more of it to yourself do it! :)

Please let me know,.
I have not quite understood ,.
whether the bitcoin is taxable what not ...?!
I am new to bitcoin.
thank you,.

What country are you a citizen of?

The IRS is able to see your transactions, so can anyone via the blockchain. They use advance chain analysis tools to figure out who is who. However the bank statements, credit card transactions, etc. is what they will use to prove tax evasion. Not a penny goes through a bank without accounting for it.
Basically if you make any profit in America, ANY PROFIT AT ALL OF ANY KIND, you owe taxes. In bitcoin it is capitol gains you owe on the appreciation of value. There is no question about this. It is clearly defined by the IRS.

READ: https://www.irs.gov/newsroom/irs-virtual-currency-guidance

Yes currently it is not taxable but in future when bitcoin bitcoin will turn as legal currency then government may impose tax on it. for example Japan has turn bitcoin as legal currency therefore i think that they may also have impose tax on bitcoin income.

Dammit man! LOL. Can't you read the post just above this nonsense.? It is absolutely taxable and has ALWAYS been taxable in the U.S. Since day 1. Don't just spout off about things you have no clue about.

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.

If the investment is profitable, the tax will be the same as income from stocks, bonds and other types of investment assets.
Taxpayers who fail to fulfill their tax obligations with Bitcoin will be fined under US law. The US Department of Commerce requires Bitcoin transactions to be recorded in order to serve tax administration.

Its not worldwide accepted yet.So the countries who had accepted it as a currency take tax from BITCOIN holders whereas it is still tax free in the countries where it is not legalised by the government of that country.

If a country accepts bitcoin, that country will set the tax system, after all, bitcoin transactions are large amounts.

Certainly bitcoin transactions are not taxable by the government because bitcoin is anonymous and highly secure so it is not possible to track the owner of the transaction so there is no way to levy taxes for the Bitcoin trading. This is also the reason why bitcoin is banned by many countries.

Yup BTC is taxable,BTC is basically your asset as well as your currency.Lets take it in different scenario,if you realized your BTC to cash there may be net capital gain/Loss upon which tax is levied depend upon country to country.You invested in BTC at low price and sold your BTC at high price,so you get teturn,which comes under tax net.If you use BTC as for barter trade then there would be no taxes.When BTC would be regulated it will be certainly come under tax.In a nutshell i can say that when you sell your BTC at profit that income come under tax..

In fact, I think mainly the currency transactions accepted by the state, the national government should formulate the relevant tax policy.

Transactions? What do you mean by that? Any sale or trade of cryptocurrency is taxable. If you sell some bitcoin for dollars or another cryptocoin, any spend to purchase something for crypto. Those are taxable events because you made a profit. It does not matter whether or not a government recognizes bitcoin. It is taxable. If you are just transferring bitcoin between your wallets that is not taxable. But all profits are.

And bitcoin is not anonymous. It is "private". But the IRS has the tools now to determine who is who in most cases. Do some homework and check out (https://www.chainalysis.com/).

Now many countries ban because tax system is not good, I think it should be taxable, after all, only by the national recognition, Bitcoin can develop more in the long run.

You see — the post appeared 7 years ago and the question is still being discussed! Until Bitcoin is not controlled by government it is not taxable. Russia said they will start controlling crypto and tax it starting this September.

As far as i know bitcoin is not taxable but when you converted it into fiat then there goes the taxes because it can be declared as your income already. As long as it stays on your ewallet then definitely nobody can own it but just you. And government is out of control of your investment.

Most Bitcoin holders make money by Bitcoin, and I think your bitcoin holdings are not taxable (at least for now), but whenever you sell bitcoin or use bitcoin Buying things, are in the accumulation of taxable income.

in some country they are taxable but some country they are banned

 
        Bitcoins are taxable for purchasing we are taxed, Bitcoin is an asset it is a virtual currency and also a digital decentralized one it is used to purchase goods and services. Bitcoin is generated by  mining it is mined by high powered computers  it is difficult for an individual to mine  since it takes more  electricity which is not affordable for an individual. Tax authorities have tried to bring regulations to Bitcoin.The value  received by giving Bitcoin is taxed professionals takes different opinions about Bitcoins.

Bitcoin comes under the umbrella of money and money is taxable.

Of course bitcoin is taxable. When we talk about bitcoin, we will talk it as money. Everything that connected with it, it will be taxable. Your opinion about the miners were the one who are asking for taxes is acceptable. Maybe the tax will came up when you sell or buy it. It will not occur when we still hold it.

The bitcoin money are not money for tax purposes so I don't see why they should consider it taxable. Anyway the taxation wouldn't bee simple as long as they can not determine the real value of bitcoin

According today as long you only holding bitcoin or any other cryptocurrency you don't need to pay.
Only if you sell them you need to report it.

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I don't think there is no way that bitcoin could be subject to taxation. I mean, a number of its features were to make sure that bitcoin in no way could be taxed by any government. Just like its Decentralization and complete anonymity that it provides its users. so i don't think bitcoin could be taxed.

Income tax will be applicable on income whether its from cash or from crypto. If you trade your Bitcoin and get money in your account then definitely this is going to be taxed. But if your Bitcoins are on your wallet it not taxable as these are not reflecting in their actual values. Bitcoin in your wallet even if they are in N numbers are not counted in Income anywhere.

When did Satoshi say that? Bitcoin was not designed to evade taxes, it was designed to give the user full control of their money. It is fair money, not magical tax free money. And the IRS has found that bitcoin solves their biggest problems with taxation by creating a perfect record of all transactions.  Bitcoin is taxed and in court the judge is not going to entertain your defense that "a guy on the internet said...".

Government can't manipulate Bitcoin transaction however they could  definitely manage it's or set a limitation within transaction with the used of it. And in some part of the country there is a specific regualrt that government used to somehow control Bitcoin and tax as a form of fee is established.

First question is where you live at time of get and sell coins. Every country has different law.
If u gain profit by investing. This will be your capital gain.
If u get coin after job work that will be your income.
Different countries has different law on income tax. If it is taxable according to law then tax will apply.

No,it impossible :D

I really do not know if the bitcoin is taxed in my country.

From what i geathered from coinbase, they can give you a calculation of your bitcoin earnings and what is taxable. It is up to you if to pay your taxes after that. I don't live in the US but I know that tax-evasion by filing incorrect data is a criminal offense punishable by fines and/or jail time.

everything that make profit must have tax and this is our obligation being a people of nation and a followers of law,and besides its just small parts of the earning so why not give it for the government.

You might want to read this now rather than reading it in your prison cell.

https://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/

In the Philippines tax is not yet taxed on bitcoin but in other countries it has tax and we do not know how much tax it imposes. because maybe they know bitcoin as a business and they have it taxed. Whenever bitcoin is bought, sold, or traded, there are tax impacts. We'll discuss how bitcoins and other forms of virtual currency are taxed, and point out record keeping requirements and tax planning techniques that can be utilized.

Yes, you are going to face the IRS taxation everywhere in the world no matter whatever you do. I think everyone should play safe as because if you pay some tax to IRS and keep all the transaction in a well-documented manner then you can avoid many milestones in your life many of them are legal and illegal problems and IRS will handle them for you. I live in India and the income tax department has made some taxation rules so everyone who uses Bitcoin or any other altcoins has to pay some amount of tax and maybe the IRS too.

Bitcoin can possibly taxable because we have earnings from trading until our coins were realised. In the Philippines, it is not yet taxable as the Government not yet know how to tax and what kind of rules and regulations should be implemented that does not violate the law of the state and to its people so I think until now they need to conduct further studies about it. The Government should implement taxable income to our earnings in trading in crypto currencies. But of course the investor will get affected on this tax however it will help them for their investments protection and safety so I think that would be ok if that's the case.

Bitcoin investments can be taxed as a capital asset, to properly pay taxes on an investment in bitcoin, you'll need to wrangle some information from each sale you conducted over the last fiscal year. This includes the basis for each amount of bitcoin you sold, the date you bought it, the date you sold it, and the price at which you sold it.So its possible if it's allowed to stay,but it's at the disposition of the investor.

Bitcoin is taxed if we dilute our funds into the usd currency or else the exchangers usually withdraw fees and this is included with the tax. so bitcoin transactions have been taxed so far

If we consider bitcoin to be a currency that will bring us revenue, then it should be subject to taxation. I do not see anything unusual in this. Soon all states that will recognize bitcoin as a means of payment, regulating the crypto currency, will necessarily set a tax on income in the crypto currency. Even Japan, the most loyal to the crypto-currency, recently established such income for its citizens at a rate of 15 to 55 percent.

Bitcoins are taxable and you have to pay taxes when you convert it to cash. If you don't pay taxes then you can get caught and you have to pay taxes then.
But most people don't pay taxes on Bitcoin.

Everything is taxable if you declare its yours. The government will not refuse tax if you are going to pay it. ;D. But because bitcoin is anonymous no one can charge tax to the holders and i hope it will be kept anonymous forever so the crocodile government officials will not be able to taste  taxes of it.

In our country the tax on gains with bitcoin is 33%. I rather keep them than paying that.

Some investors prefer not to pay the income tax they earn through Bitcoin trading. Bitcoin investment is very difficult to determine by state. But honest citizens must pay their taxes.

They are but it is hard to check for the government. I think it is smarter to just pay it because else it will bite you in the ass.

I think this is why I don't use coinbase from a long time ago, I don't want to pay tax on the money that I got from bitcoin. I only want to pay the tax for what I buy or I think I will make a report for the money I have or something like that. I think until bitcoin is not approve by the government, then they cannot apply the tax for bitcoin user.

You are going to turn the best investment of your life into a jail sentence.

right now bitcoins are not taxable but governments are weird and they can come up with something if they want to

Yes, it is stated by US Internal Revenue Service that bitcoins should be taxable because it is considered as an intangible asset and not a currency.

https://www.investopedia.com/articles/investing/040515/are-there-taxes-bitcoins.asp (https://www.investopedia.com/articles/investing/040515/are-there-taxes-bitcoins.asp)

It depends upon the country, but I think bitcoin in many countries is not taxable that's the reason why many governments denying official status to the bitcoin they will not get any revenue from it so they are up against the use of bitcoin, once if it taxable then may agree to use the bitcoin.

According to my concept Bitcoin is so far not taxable bitcoin was introduced by an anonymous person or company named Satoshi Nakamoto. Bitcoin transaction is done without a third party interference it is a digital,decentralized, online transaction.the fund can be transferred quickly and low fees to send all over the world. the identity of the person is not revealed and it cannot be traced and so no tax can be levied for Bitcoin transactions.

Bitcoin can be taxed and will be immediately taken by the government. You can avoid taxes because of investments, because in some countries, what income you leave behind after investment is the tax you have to pay, then Again I'm not sure if all countries follow this. This is totally different from tax evasion. Tax evasion is that you are not paying any illegal taxes in a country where there is a tax.

Thanks man for the info. That was very helpful. I was not aware of that. Sorry but I don't have sMerits, you deserved it.
I guess I will need to read more about taxation as I gain more coins and value.

For the UK, I've put the tax situation into a blog post here, as I understand it: https://bitcoin-investors.co.uk/2018/03/uk-tax-on-bitcoin-and-other-cryptocurrencies/

Yes currently bitcoin is not taxable but in future when bitcoin will become legal currency and when government will turn bitcoin legal then it will become taxable and then government will even start collecting tax on bitcoin income, but currently i do not think that bitcoin is taxable in any corner of the world.

It all comes down to the price when you hit the sell button. If you sell at a profit you have to pay capital gains. This percentage depends on your tax bracket

In my country Bitcoin is taxable and the tax is like ~40 %, so my state is literally stealing money from us bitcoiners.

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They cannot be taxed, I think the most realistic way to be taxed is the income. If you got the income then it will be counted as income tax, they have specific percentage for income tax.

I do not think that people want to tell the government that they are saving bitcoin for their own purposes. But I still think that the government will use all means to know this and they still want to make taxes in the future. Even if the government wants to check every citizen bank account, they can not find people using bitcoin and we are still hiding behind the wall.

because in my country, bitcoin is not accepting and the government only said that people still need to be careful when they want to invest their money in cryptocurrency. but if somehow in my country bitcoin is accepted, I will obey the rule and I will pay the tax on bitcoin and until that time, I think I will use third-party services to help me to withdraw my bitcoin.

The exchange rate is unofficial, so it is not taxed, but for the transfers a rather large commission is taken.

Bitcoin is not taxable, There's no word like tax as long cryptocurrency is concerned,though tax is percentage of certain amount, so the transactions charge can be called a tax, same applies to mining,..

As far as I know bitcoin is not taxable. Bitcoin is independently operated by any government. Bitcoin is programmed to pay directly through any agency.

I think that in the near future in all countries, crypto-currencies will be recognized as an asset and will be taxed. It is right. Those who make a profit on trade or with long-term investments must pay tax on profits, because this is entrepreneurship! As in the securities market and shares! Personally, I will pay the tax when I withdraw money from Bitcoin.

Bitcoin is not subject to any taxes. Bitcoin is programmed for transaction and direct billing. The bitcoin system extends all over the world. This is an advantage of bitcoin that everyone agrees.

I guess one of the nice feature of bitcoin is it is not taxable. That's why it was created as a digital currency. But if the time comes that the government impose tax on bitcoin then that would affect the bitcoin community.

Bitcoin (Bitcoin), the most popular crypto currency, replaces conventional money and has real value (for example, bitcoins can be exchanged for US dollars, euros and other classical and virtual currencies). Usually operations with bitcoins are conducted anonymously through the Internet. This unregulated virtual currency is not dependent on any central bank or government.

For me, bitcoin is taxable. Because the transactions by using virtual currency must be reported in U.S. dollars. Taxpayers will be required to determine the fair market value of virtual currency in U.S. dollars as of the date of payment or receipt. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars at the exchange rate, in a reasonable manner that is consistently applied.

what i know about this, in some country until now there is no tax for bitcoin, only there is transfer fee. For the transfer fee, it depends on the traditional bank itself, usually 2-5 % per transaction.

When I started here in cryptocurrency, I gathered some information about bitcoin and one I proud of it is that, bitcoin is decentralized. Government can't imposed tax or even a regulation about bitcoin. However, due to the banning of government in cryptocurrency, bitcoin loses its decentralization. As of now, bitcoin is taxable.

a good or service used for a transaction would be taxed as bitcoin. Because bitcoin is treated as an asset or an unrealized property and not a currency issued by the bank.

Bitcoin is a virtual currency that uses cryptographic encryption system to facilitate secure transfers and storage. Unlike a fiat currency, bitcoin is not printed by a central bank, nor is it backed by any government. Bitcoins are generated by a process called mining, that is wherein high-powered computers, on a distributed network, use an open source mathematical formula to produce bitcoins.

yes I agree, bitcoin is taxable..every income from investing must be taxes.

Many people now were asking questions if bitcoin is taxable, it will depends on the country where you live. Like us, in country, bitcoin is not yet taxable hence many people now were enjoying profit without even deducted tax.

I think its not worldwide accepted yet.So the countries who had accepted it as a currency take tax from BITCOIN holders whereas it is still tax free in the countries where it is not legalised by the government of that country.

I can see that this post is from 2011 and even after 7 years, we don't have any concrete laws or guidelines from the government to deal with gains from the crypto in most of the counties.

As I had discussion with the Vice president of one domestic Bitcoin exchange, he advice me to pay tax like regular income on the realized amount (the amount which is en-cashed in fiat currency). As today is the last day of the accounting year in my country, I have to consult accountant to deal with it.

As far as I know, bitcoin cannot be taxed because there's no law can be applied to it since transactions made are hidden. That is why some other countries are banning crypto-currencies. But many countries are infavor of the adoption due to the benefits that btc brings.

In my country those who are earning bitcoin are not paying tax because there is no law that says so, what I know is that whenever we convert our bitcoin in fiat the exchange charges.But I think in the future when everything is clear with crypto government will start implementing strict law about paying taxes and as a citezen I will politely follow the rules even if we all know that bitcoin is created to illiminate this kind of scheme.

This I seriously dont believe is taxable

Bitcoin is not taxable. As you can see, no banks and government can manipulate it. And as what i know is that any things that cant be manipulated by government dont have taxes. And i think that bitcoin is impossible to be tax because bitcoin is volatile, unpredictable, the value is changing, dont have constant value. How can you tax something you cant determine the value?

Bitcoin is not a taxable thing and it is not under the government they cannot handle it because it is online and they cannot manage it daily or weekly because internet is a very complicated thing and anyone can access it so it is hard to give it a tax.

No bitcoin is decentralize cryptocurrency very independent from any government offices which are the one who ask taxes from any business running, for bitcoin in the digital world the government can not impose taxes ,that is why government do not like bitcoin and cryptocurrency in their program.

in my opinion it is natural that btc in taxable, btc is very popular in the eyes of the world and btc tax is very obligatory for the country, btc is future investment for me and i am sure btc will make me success

Yes this all bitcoin users the business are savings to the taxable market.Paying taxes on bitcoin may seem daunting to people selling off their investments.The reality is straightforward for most investors, based on how much you bought bitcoin for, how much you sold it for, and what you make in income.But as tax season approaches, it may not be immediately clear how the imposes taxes on bitcoin Are the gains considered income are they capital gains something else entirely in system.we will helps from the financial experts, Business Insider into the tax code to make the process of paying taxes on bitcoin as simple as possible of business.

The IRS has obliged to report bitcoin transactions of all kinds, no matter how small they are. Accordingly, each US taxpayer is required to keep records of all purchases, sales, investments, or use of bitcoin to pay for goods or services

     There is a lot of misinformation in this thread regarding the legality of avoiding taxes. Given that there are 21 pages on this thread regarding the subject, I am sure what I am about to say has been said before. The last thing that I want is to see any bitcoin supporter go to jail for tax evasion, so I will reiterate what I know to be true.

(I am basing my response off of the United States Tax Laws, however, this will likely apply to most other countries as well.)

     YES, you do have to pay taxes on cryptocurrency! Cryptocurrency has some uncertainty whether or not its to be treated as a currency or a commodity... but one thing is certain, it is certainly considered a capital asset.

     As we all know, the price of cryptocurrency certainly can fluctuate. Now one huge misconception is that if you hold on to a cryptocurrency that goes up in value, your going to have to pay huge amounts of taxes if you end up filing taxes while the price is high. The obvious fear there would be that if you pay taxes at a high evaluation, then the price lowers before you sell it, you would be paying taxes on unrealized gains.

     The only taxes that an individual is expected to pay is on realized gains. In order to file taxes, you must keep track of the following:


   Using this information, it is possible to determine the actual realized gains. If the sale of the cryptocurrency comes less than a year after the purchasing date, then it is taxed as income (a much higher rate). If you have held on to the cryptocurrency for longer then a year, the gains are taxed at a much lower rate.  

Bitcoin is taxable, it differ country to country. 30% tax on Bitcoin in India if you hold it less than 2 years.

if it has been received in a country most likely bitcoin should be taxed. but because my country has not been accepted yet, so far bitcoin has not been taxed

if bitcoin is taxed when we work and get a bitcoin wage and we have a steady income every month. but if we just keep it, I think we can avoid taxes because we have no fixed income of bitcoin and we use bitcoin as an investment tool not to earn income.

I believe btc is taxable. Not by means of the government is taxing but I guess that the miners were the one who are asking for taxes. The confirmation is dependable on how much btc you spend. If you will spend the high amount in sending then the confirmation of your transaction will be fast.

bitcoin will give you alot income, I think It is taxable. so, you must pay tax. in my opinion.

i think bitcoin itself cannot be tax, i cant think of a way how to tax it, the only way that the government tax the crypto is through centralized exchange and merchants that accepts bitcoin or altcoins.

bitcoin is not taxable..he's not controlled yet,the maximum that can be done is to pay income tax for the year to go to the tax, and specify your profit,and to pay 13%

     I think you are confusing the government's ability to tax bitcoin with the requirement to pay taxes on bitcoin. The government certainly is at a massive disadvantage when it comes to determining the accuracy of an individuals tax filings when it comes to bitcoin. Just because the government is not able to easily hold us accountable, does not mean that taxes simply do not have to be paid.

     Bitcoin is still a capital asset. If income is made in the form of bitcoin, it still needs to be taxed as income. If an individual makes a realized gain from the sale of their bitcoin, then that profit is subject to taxation as well.

     If an individual avoids paying taxes on their Bitcoin, they are going to run into troubles whenever they try and spend it. Most legitimate exchanges will report large transactions to the IRS. If you accept large payments in exchange for your Bitcoin, the IRS will be able to track that. If you do not pay taxes you will not be able to make any large purchases without the IRS being able to determine you are committing tax fraud.

I think, bitcoin is taxable. If government really wants to tax you , you must pay it.

I think there is no tax on bitcoin except overseas that approves the bitcoin in their country as well as the government so other countries have tax because they know legit bitcoin and they can also cashout big money because legit bitcoin their country

 I think , bitcoin is taxable. Every transaction give income is taxable. So If government really wants to tax you must pay. it's in my opinion.

Yes bitcoin are taxable just that government is still trying to understand the Blockchain technology and come out with measures to collect tax from crypto currency in general.

for now there is no tax that can bind the bitcoin that happens in my country, maybe because the government has not fully formalize bitcoin into the official currency that can to conduct transactions, maybe if the government legalize bitcoin there will be a tax that regulate it

yes absolutely, now we're at the stage where the regulation is being set which means also taxes will need to be paid from crypto trading profits. I believe it's a good thing though

As good citizens, we should be taxable. So my question to date is whether the bitcoin user may be taxed while the bitcoin user identity can not be traced.

I know today countries have adjusted the taxes for bitcoin. but I have not yet clarified which countries it is

I think that is also one of the major reason and factor why countries are getting a double take when acceting bitcoin on their border because they still do not know how to regulate or tax cryptocurrency. I agree with some of the post here that says that you cannot tax something that is still in the market or in the network but once you change it into cash then I would think that there is where the regulation would take place and the taxation would be applied to money changed from cryptocurrency

Can be answered in two situations

1. Countries where Bitcoin is legal they take direct tax on the earning of bitcoin.

2. Countries where Bitcoin is not legal, have to pay tax as a business profit tax in short term or long term bases, so it's purely depends upon country to country.

No. I think in some countries it is taxable already. Until now in my country we don't heard any threat that bitcoin will be taxable anytime soon. I don't know when it will be applied but im hoping not to..hehehe But as of the moment its no.

I don't know how the government can collect tax since bitcoin transaction is decentralized and no other party can trace your identity in a P2P transaction, but maybe   they can tap on every exchanges so that they can collect every transaction but i doubt on how KYC truly identified the legitimacy of an individual for each transaction.

The tax that may potentially be collected by the BIR depends on how it will classify bitcoins. If bitcoins are classified as properties, then capital gains tax may be imposed on bitcoin transactions. If bitcoin transactions are taxed similarly as stocks, a fixed percentage tax may also be imposed. Income from bitcoin (or other cryptocurrency) mining can also be subject to regular income tax and other business taxes.

as we know bitcoin in my country no taxes, even though we have a lot of btc, for my country there will be no taxes, I think most likely bitcoin will be taxed in the next few years but if taxed to us also no problem, with bitcoin adaya with tax payments, bitcoin future will also be brighter again.

I think it depends on the territory or country where you do business. I think some countries have already made plans or are implementing regulations to control and impose laws upon cryptocurrency transactions, and part of those imposed laws is taxation. I think this is inevitable since many countries have began to see the cryptocurrency market's real advantage, and as a legit market, it will not be surprising for government and countries to find ways to use it to their advantage.

Of course you need to pay taxes for the state, but you can avoid that in a lot of different ways. But I think you should not avoid that, you will regret when discovered by the government.
Being a good citizen and honest, contributing to the country is an honor. Think positively and you will avoid more risk.

Hi! here's  a  related  article for your question  Are Bitcoin is  Taxable?  I hope it will help. ;) this will  tackle how bitcoin is being taxed. https://www.thebalance.com/how-bitcoins-are-taxed-3192871

bitcoin there is no such thing as tax payment, because at this time the government has not acknowledged the existence of the legitimate bitcoin, I think some time to come the government will also recognize the existence of bitcoin, because for bitcoin government can also help  economy them, so for our government one day will later recognize the existence of a legitimate bitcoin.

Bitcoin is not taxable because no one possessed it and not been controlled by anybody. Not me, Not you, Not government. The government won't know who the people who utilize bitcoin are. This some reason of nation restricted the bitcoin and altcoin. The government cannot get an advantage on utilizing the digital currency on that place. Still, the administrations are considering how to tax bitcoin and in what category to tax.

hemm it still being matter in any country
but i hear that bitcoin in USA is now must paying tax because 40% people are bitcoin holder in USA so the goverment making some new rule to paying tax with it or every bitcoin asset that they have
it needs to be taxed i think to helping country with bitcoin profit

Yes, why not? Bitcoin income is just as cash income or profit - any good citizen will pay the taxes.

Income from bitcoin is just like bitcoin from anything else so it can be taxed and government can take a portion of it, they are just trying to figure out a way to tax it all.

Yes it is taxable. In our country every time we convert it into fiat currency the agency that we go into collect a processing fee. And they'll collect tax for that fee. The bigger the value we convert the bigger the fee and also the tax. Yet our country is planning to legalize the cryptocurrency so that they collect more tax.

If the government wants to tax bitcoin, then I think they will put the tax on the people who verify the transactions(miners) and in turn the transaction fee will now include those taxes.

That is not in the protocol and not going to happen. In the U.S. taxes are, and have always been, an obligation of anyone who profits from bitcoin. In fact ANY PROFIT YOU MAKE FOR ANY REASON IS TAXABLE.  It is not on the miners, it is on you if you made a profit.

I think yes they are, if governments are really serious with the whole regulation thing, we might get taxed in the coming future.
But I think that is still a very long way to go. Would you like to be taxed with the rate bitcoins are in now? it's a lose if I were
to say it. As soon as the government gets involved we can expect taxes from earnings and transaction fees will be a normal
convenience by then. I think it's really only a matter of time, a year or two to say the least.. there maybe delays but it's an
undeniable outcome, we will get to that point and we better prepare for it.

Bitcoin is a non-taxable asset but directly without changing to fiat. bitcoin taxable if used as fiat for sale and purchase of goods, sipenjual taxable and sipembeli also taxable.

Bitcoins have decentralized design, so they will not distinguish which bitcoin address. It means because of the decentralized the government can’t identify and recognize which bitcoin address is yours. I have read an article regarding this; some countries are being taxes but how they did it. They added income taxes when someone bought stuff or product if they paid it bitcoin.

Bitcoin taxable na.I mean so far bitcointaxable but world is going to change Many new discoveries are being made. It's changing the world. so We can not suply say that bitcoin is not taxable. The future does not have to be said that future software like this can be found. In country no bitcoin is  tax now.

Yes.off course, bitcoin is taxable. I think this tax is not taxed by the government. It is, however, assumed that the miners are specifically requested to pay taxes. BTC is basically dependent on how much you spend. If you send more money, the transaction guarantee will be faster.