Bitcoin Forum

Has anyone used bitcoin.tax?  Is there anything better out there?

This made me laugh. But seriously I never heard about bitcoin.tax before and I am checking their site now. I found this: https://bitcoin.tax/blog/bitcoin-taxes-things-to-remember/ and I am dumbfounded.
What the hell is this? I live in EU and we DON'T have anything like that here. Why would I want even declare that I own bitcoin?! To pay more taxes? It is just stupid.

I'm confused...
what is bitcoin tax software.?
Is it right or wrong?
can anyone tell me ?

i'm interested in this if it ever exist, can you point us to this software? i would like to see how it work

Can you explain why to use any software to tax on Bitcoins? I do not understand reason why. May be I missed something important. Can I be part of tax office then? :)

When you trade Bitcoins for fiat or vice versa, you earn some money. Some countries require you to pay taxes on these earnings.
However it is difficult to track your trades and calculate correct amount of tax to report, so there exist some softwares that can do this for you.

Maybe some people love paying tax more than others. How do I apply to be part of the tax office as well?  ::)

If I were to trade bitcoins I would just attach my bank account to my accounting document and gains/losses would be determined by what I put in the exchange and what I got out.

A - B = C

Things are only complicated if you make them so ;)

If you have been using an exchange which requires strict KYC policies, your trades might be linked to your bank account activities. Unless you have found a way to create fake bank account that doesn't link your identity to it.

Different countries have different setup. Sometimes the tax authority does not have any information about your bank accounts and sometime that have been watching your accounts.

In the end it all comes down to how well you have covered your ass which carrying out your Fiat-Bitcoin-Fiat trades.

Reduce inequality (welfare payments like unemployment benefit).
Provide public goods (fire, police, national defence)
Provide important public services like education and health (merit goods)
Debt interest payments.
Transport
Military spending

At least they're supposed to.

https://bitcoin.tax

Feel free to ask if you have any questions.


In many countries, the profits from buying and selling property or assets is income. Income is taxed. In the US, if you mined any coins, it is income. If you sold/spent any coins for more than they were purchased, it is capital gains income.


Depends where you live in EU. Many countries tax capital gains, and Bitcoin is treated in the same way. You don't pay taxes on Bitcoins, but you pay taxes on profits you make from selling them.

 I don't know if the service is good or not, but the point is that even if you ask to some governments they don't know bitcoin and they don't how to tax it, so how does this service know how to tax your bitcoins depending on the country where you are?

i think that if this program is legit(which probably isn't) it work for USA only, where bitcoin are regulated and taxable already

but you can apply it for other country if you need to declare your increased income due to bitcoin

I've never used any tax software in my life, and I never will.

This is legal ? :-\ its not available for my country, actually i will not use it :D except this have a regulation and forced from the govs, but really.... i will not use it ;D


~iki

Looks like there is this service/software as well:

http://www.coindesk.com/libra-bitcoin-tax-service-irs-guidance/

http://www.libratax.com/

There should be no shortage of tools for Crypto users come tax season with all these startup ventures sprouting up.

Seriously, bringing taxes to bitcoin is just stupid. How will the government even indentify us as a bitcoin holder/user.
They have no proof or whatsoever. Luckily, in my country, the government still doesnt know bitcoin very well and bitcoin is still not regulated :)

no because avoiding tax is one of the reasons to use bitcoin

If you're hoping to avoid tax, it's going to depend on how you acquired your BTC.  It's a public ledger after all.

What if they discover that you own millions of BTC when you buy something? they could trace it back through the blockchain.

How to avoid this? Is mixing the coins you are going to use before you buy whatever enough?

Not that I have millions, in fact I only got 2 BTC, but who knows how much 2 BTC will be in 10 years.

It's not hard in the U.S. Bitcoins are treated as capitol gains. You need to know:

What you paid for the coins.
What they are worth at the time you sell or spend them.

How much and what percent you will pay varies depending on your bracket and other things. It could be as low as zero but is very unlikely to be more than 20%. You will have to do your taxes to find out, but you will only be paying taxes on the profits and you don't need to say how many coins you own.
If you lost money then you can also claim a loss and reduce your taxes.

Few like to pay taxes, but the good news is that this will be less taxed than the money you work your ass off for. 

Yep, if you held the coins that you sold for 1 year or more, it's long-term capital gains and you pay "only" 15% in tax.

What if you legitimately forgot/lost said data? as some people has mentioned before, it is more than probable that a lot of your trades were done under exchanges that are now dead and there is no way to recover all the lost data... so in hell are you supposed to try to figure that out?