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Title: If you get paid in Bitcoin do you have to pay taxes? Post by: Bitcoin Magazine on October 13, 2014, 04:47:04 PM And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc..
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: transient858 on October 13, 2014, 04:47:44 PM Of course.
Not doing so will only invite trouble down the road. Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: John22 on October 13, 2014, 04:50:31 PM Yes. You are going to deal with bank and the government. So, you need to pay the tax.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: RustyNomad on October 13, 2014, 05:02:19 PM The government does not give two hoots how you get paid, if you get some they want some.... ;D
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: LiteCoinGuy on October 13, 2014, 05:06:59 PM just translate into dollars when you recieve BTC. should be ok then.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: RodeoX on October 13, 2014, 05:09:26 PM There is no such thing as tax free income. You will have to pay income tax on bitcoin you earn from work, and capitol gains on any appreciation in value. Of course you can claim a loss if bitcoin depreciates.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: M8 on October 13, 2014, 05:09:56 PM It all depends on the laws of your country. Some wont require taxes unless you exchange it to fiat, but many countries will try tax it in the future.
1AbHnmymnwaCSHRwrFjwRr9r3QzawnTPZB Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: DGulari on October 13, 2014, 07:59:34 PM And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc.. No. It is not necessary to pay taxes if you earn in bitcoin only. Besides, how can your employer send a W9 form to the government? That form has no place for bitcoin.Bitcoin earnings are to be considered tax free. http://img.timeinc.net/time/photoessays/2009/10_tax_evaders/top10_tax_leona_helmsley.jpg This lady said it best: "Taxes are only for little people" She had 5.4 billion - so she knows a lot about taxes Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: cp1 on October 13, 2014, 08:01:02 PM It's just like when you get paid in cash.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: Meuh6879 on October 13, 2014, 08:02:59 PM Sorry, but TAX apply to "physical good" ... and "working for something".
If you move BTC to your familly, you don't have (need) tax to do this (except fees of the bitcoin network). http://i.perezhilton.com/wp-content/uploads/2014/02/house-of-cards-season-three-postponed-tax-reasons.gif https://www.youtube.com/watch?v=Oj8eFu72_fc Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: pedrog on October 13, 2014, 08:03:49 PM Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: NeuroticFish on October 13, 2014, 08:09:16 PM If you are paid in apples, would you have to pay taxes? Depends. If the one that's paying you has his own apple trees, it can go silent.
One of the main reasons the governments don't like crypto is because they cannot control it. Giving them more reasons to hate it is not a great idea imho, so I'd pay the taxes. Not nice, but yeah.. the chances they find out and catch you are not that small. Bitcoin is not that anonymous. There are ways to trace that income. And if you want to convert to fiat at some point, ... they will try to trace that. Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: Melbustus on October 13, 2014, 08:16:19 PM IRS "Virtual Currency Guidance": http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Quote -- Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes. -- Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099. -- The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer. -- A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property. tldr: Yes. Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: TheButterZone on October 13, 2014, 10:59:41 PM You have to pay taxes for merely breathing.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: cafucafucafu on October 13, 2014, 11:02:11 PM How about the UK? I think there are no BTC taxes.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: bitgeek on October 13, 2014, 11:04:16 PM My answer is you should, but you don't have to.
You just have to be careful and prepared to face the consequences. Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: tzortz on October 13, 2014, 11:06:09 PM Depends on the country.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: BADecker on October 13, 2014, 11:25:36 PM The only time you should pay taxes is if you owe them. If you owe them, then it is honorable to pay them. However, you might be able to get out of paying them.
The point is to get paid in a way that you don't owe taxes. File your W-4 "non-assumpsit" and exempt. This means, no IRS contract = no taxes. Study here to learn about it and a whole lot of other things: http://www.myprivateaudio.com/Karl-Lentz.html = Angela Stark's Talkshoe. http://www.youtube.com/channel/UC5duR4OvEHHxOSdEZhANETw = TrustInAllLaw snippets of Karl's audios. http://www.broadmind.org/ = Karl's main page. http://www.unkommonlaw.co.uk/ = Karl's United Kingdom page. http://www.youtube.com/user/765736/videos?view=0&live_view=500&flow=grid&sort=da = Craig Lynch's snippets page. http://www.youtube.com/watch?v=HOkAHRzuiOA&list=PLHrkQxgz0mg6kUBciD-HIvTXByqjcIZ-D = Ten great Youtube videos, might be the best introduction to Karl. http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=127469&cmd=tc = Karl's Talkshoe site. http://www.youtube.com/watch?v=Iua56K4Mysk = Karl Lentz - The Brian Bonar Incident - YouTube. http://www.youtube.com/watch?v=cdHLHWS4gPE = Lentz-Sense - don't be a More~On - YouTube. Other Info http://voidjudgments.com/ = The Secret is most judgments are Void on their face and not merely voidable. http://educationcenter2000.com/Trinsey-v-Paglario.htm = Trinsey v. Pagliaro - Attorneys cannot "speak" in common law trials if the one who is bringing the suit orders it. Holding from Trinsey v. Pagliaro: "An attorney for the plaintiff cannot admit evidence into the court. He is either an attorney or a witness." :) Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: SomethingElse on October 13, 2014, 11:30:35 PM It depends one which country. I will be very interested to watch this develop, but yes most countries will want taxes.
Take the US for example though. If you sell things on the internet to people in other states or countries, they do not have to pay taxes. There might be some loopholes. After all "Bitcoin isn't a currency" in many places. I mean basically, if I get paid in baseball cards, the government doesn't tax those. Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: SomethingElse on October 13, 2014, 11:33:43 PM And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc.. Isn't Vitalek the creator of Bitcoin Magazine? Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: charliemaggot on October 14, 2014, 03:13:53 AM How about the UK? I think there are no BTC taxes. Yes, the UK, like every other country I can think of, requires you to pay income tax on items of value you received to the value of your own currency. Whilst this may considered a barter, it is still taxed as income. Quote As with any other activity, whether the treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies will be subject to CT, IT or CGT depends on the activities and the parties involved. 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-cryptocurrenciesTitle: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: Michel28 on October 14, 2014, 01:44:56 PM If the government is asking to pay taxes for the exchangers then you need to pay tax for selling or buying coins.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: vicemayor on October 25, 2014, 01:12:28 AM I know it varies with jurisdiction but for almost all tax regimes, don't make the simple mistake of thinking "oh, since bitcoin isn't officially recognized as a 'currency', then they (the gov't) can't tax it. How they tax something that isn't cash?!" In fact, there are many non-cash assets that are taxed all the time ... the easiest example being real estate or property. Also, under IRS Form 1099 MISC for miscellaneous income, they cite both products and services as well. While it's unlikely the gov't or IRS will go after people for bartering things like eggs, milk & farm goods - even if well over the $600 of value mark - they'll certain go after larger items or services, if they somehow become aware of it. And, in the case of bitcoin, I'd imagine if the person or company that paid you was 1) in the same tax regime as you 2) declared it or indicated the details of the transaction on their books ... there is only a fair chance (especially if they got an audit etc) that something might lead back to you (if you failed to declare it).
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: bitnanigans on October 25, 2014, 10:29:12 AM Logically, I think capital gains tax would apply to Bitcoin, but I'm not a lawyer nor an expert in these matters. Maybe you won't have to pay taxes if you don't convert to fiat, since Bitcoin values themselves aren't taxable.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: zyzzbrah on October 25, 2014, 11:19:27 PM Of course you dont. Do you think people here are paying "ad signature campaing" taxes? lol. You only need to pay if you are going to cash out. If you hold, you are free.
Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: M8 on October 28, 2014, 09:15:46 AM Logically, I think capital gains tax would apply to Bitcoin, but I'm not a lawyer nor an expert in these matters. Maybe you won't have to pay taxes if you don't convert to fiat, since Bitcoin values themselves aren't taxable. Capital gains tax would probably normally apply and like you said usually only if you cash them out, but it all depends on the laws of your specific country so I'd check before anyone takes advice from anyone on here. Title: Re: If you get paid in Bitcoin do you have to pay taxes? Post by: RodeoX on October 28, 2014, 03:33:18 PM And is this going to be an issue in the future? moving money around to keep the govt. off your backs, etc.. No. It is not necessary to pay taxes if you earn in bitcoin only. Besides, how can your employer send a W9 form to the government? That form has no place for bitcoin.Bitcoin earnings are to be considered tax free. http://img.timeinc.net/time/photoessays/2009/10_tax_evaders/top10_tax_leona_helmsley.jpg This lady said it best: "Taxes are only for little people" She had 5.4 billion - so she knows a lot about taxes Um, I hope no one is taking your advice here. You do owe taxes on your bitcoin earnings. You are quoting Leona Helmsley as evidence that you do not. Perhaps you are aware that she was imprisoned for tax evasion? She is not the person you want advising you on taxes. It is as simple as this: There is no such thing as tax free money in the United states. Don't be stupid and end up loosing your money from fines, or your freedom. |
