Bitcoin Forum

Hello,

I have started earning bitcoin by doing technical jobs and website design I have saved up quite a bit of balance over the previous 8 months I have not actually sold any into my bank account as I was worried about the tax implications.

If I buy for example GOLD bullion with my bitcoin, does that mean it is tax free?
BUT if I sell my bitcoin for fiat such as GBP or USD I have to pay tax as it's considered income?

Am I correct in saying this, if so would I be better buying gold than cashing out?


I only want to get rid of my bitcoin as the price seems to be dropping

it depends on in what country you live. each country has different tax on Bitcoin / Gold and Silver.

i would sell your Bitcoins for cash. Find someone local. And then buy Gold with the money.

It completely depend on the country you reside. Most of the countries levies tax in various forms for gold as well silver purchase through cash. By bitcoin you may get exemption as you are planning for gold/silver bullion. Now price is getting increased.

This is a difficult decision atm, and one which I face as well. I think you should stay away from any fiat currencies until it is clear what will happen after the banking implosion. Governments are trying to kick the problem forward ( CoCos are the latest ponzi scam), but they can't do this forever. So should you stay in Bitcoin, or buy gold. It's all a gamble of course, but I believe that the Bitcoin price will increase as soon as bail-ins start to appear. Sonwhat about Gold? Gold "exists" in two forms - physical gold, and paper gold. China, Russia, India, and several other countries are buying physical gold in large quantities. Canada seems to be the only country that is bucking the trend. There isover 300 times as much paper gold as physical gold, and the price could rocket as soon as panic short covering sets in. I'm not buying gold, despite its obvious attraction, because of the high(ish) costs of retail purchases, and the risk of fraud ( a lot of gold is fake atm ). I buy broken gold watches etc. at charity shops if I see them, but this isn't very often.

How about spreading your exposure by keeping half in Bitcoin, and buying gold with the other half if you are sure you can buy real gold.

The tax situation must depend on the situation in your country, and the treatment of asset disposal and the chances of getting rollover relief.

Your only option is to contact a Bitcoin friendly lawyer. Don't listed to a "yes" or "no" cuz nobody knows the full extent of any law here.

I would assume you are trading a commodity for a commodity so no but could be wrong.

Try volturo. It gets a lot of love.

That's tax evasion however you wanna frame it by the sounds of it. No matter what you were paid in you gotta pay your income tax if it's above a certain leve. I'll guess that any reputable gold seller is hammered with money laundering stuff. If you can find one who doesn't care then you're golden.

yep, but if you don't have to pay taxes, you still need to pay fees. if you want to cash out, you have to pay fee in the exchanger, if you want to buy gold, you have to pay fee to send the bitcoin to seller's address. both is same.

or you can also buy gold then sell it for fiat money.

It depends how much you are trying to buy. You won't get nabbed for amounts <$5k

Better to choose gold and i think you should need to pay for a tax..and i think it needs papers for gold if you buy gold bar or any types of gold..

Gold better than silver, but you will have to pay a tax if you will purchase it online then hugo tax and customs duty.

Definitely this.  Make sure to check with a tax attorney preferably a bitcoin tax attorney.

no i dont think so. actually there is no tex on bitocin and you are going to buy it in bitcoin therefore i dont think that you have to pay any tax on that.

Depends on the country.
I know that in the entire EU and in the US bitcoin is seen as a posession instead of a currency so is treated in a similar way as to if you were buying silver with gold! (you cannot split the gold in fifths easily in order to pay tax)!
You do, however, have to technically pay VAT when purchasing Bitcoin in these countries (I think)

but i think i have never seen such an exchange where the exchange of bitcoin in gold or Silver is done. so my personal view is that if there are such exchange who can convert your bitcoin into gold or silver then you must have to pay tax to them.

You can convert bitcoin to gold in bitgold!
The gold is then stored in a vault and can then be delivered to you with international shipping!
The only problem, I don't really trust them!

There are many websites that accept bitcoins as payment mode to buy gold/silver:
bitgild.com
amagimetals.com
veldtgold.com
coaex.com

And many more websites are planning to implement bitcoins as a payment mode. It's only when we convert bitcoins to fiat that we need to care about taxes else it's nothing to fear about.

Unless you can pay your bills in precious metal, eventually, you will need to convert this to fiat. When bitcoin is converted to fiat, by whatever means (like a gold purchase), capital gains have been achieved (or losses) and there is tax liability to be addressed. Failure to do this (or declare that gold) is tax evasion.

If you buy from a professional company any tax is usually covered by them!
If you buy things with bitcoin, actually, dependent on where you live.
Usually, if you purchase things with bitcoin, it is hard to trace so you don't really need to pay tax as bitcoin is classed as an "unregulated" currency. However, if you are found to be doing tax evasion (if someone finds out) then it does make sense to pay the value added tax needed to purchase the gold (though it is hard to do as your government do not usually accept Bitcoin as a payment method so it will ned converting to fiat which then makes it quite confusing)!

it always have tax even if you buy a gold or fiat. hahaha. there are some withdrawal fees or trancsaction fees that will deduct in every transaction process. in that fees , it is included the tax. and site that you use will pay the tax using the fees collected to you. i hope i help you OP

Gold and silver has its own sales tax and other taxes etc, so if you want to buy gold or silver with your bitcoin then you will have to pay the same amount which you pay with your fiat.

You will be at mistake if you did that, because you are going to back, it was the past when everyone was going to invest in gold and silver, at there the profit from these assets is much lower and slow, but now all of those who are expert traders do invest in bitcoin and they are nw at a good speed. The better suggestion is that you do not invest in gold and silver as you will be at a snail speed for your income bitcoin is a good choice and it is  a great chance for all of us to invest in bitcoin from now as in the coming years no one knows that the price will increase more or not as the stability will also occur, and it is sure that the price will increase more higher in the coming months.

i think if we are going to buy or sell Gold or Silver in our local shops we are not paying bill in fiat currency. therefore if the godl buyer or godsmith is ready to buy it directly in bitcoin then why will you pay bill. i dont think so.

It's not about making huge profits it's about diversification. Anybody that knows anything can tell you that.  Also i will give you a tip, bitcoin can just as easily go down and not just up.

I think if the price of bitcoin go up and down depend on the supply and demand, if the demand increases more then the price will increase much higher more easily and with not hurdle and when the demand is less and the supply increases the the price drop down easily.

as said it depends on your local law. where i live, if you made profit with btc and you buy gold with it, you also should pay the tax.

I don't know about other taxes, but at the time when you will buy it then the seller will ask you a price including the sales tax on them, so in that case you will pay the tax.

but only if the bitcoin is considered as a legal currency in a state, if a state consider as illegal then it is also illegal to buy gold or silver with bitcoin. in fact in our country we are not going to pay tax on gold or silver while buying, here we buy gold and silver as we buy vegetable or meat or other stuff from store and we do not pay tax on these things similarly we buy gold and silver from shops and do not pay tax on that .

You're being paid ergo you're liable for income tax. Just because it's magic internet money doesn't mean you're also magically relieved of the necessity to pay tax. The HMRC tries to get a cut of barter, why would Bitcoin be any different?

You can try to hide it and the chances are you'll be fine, but most people pay tax to avoid potential ball ache not because they want to.

It is really upto which country you are living, in my country buying gold and silver is both taxable and non taxable, because when we purchase it is upto us that we have to declare or not, but it is same like if we dont declare it become illegal property of us. so it is taxable if you are buying gold and silver. same on bitcoin it is still not clear in my country so if i convert to fiat also no problem as their wont i have to show them any details. i convert it to my fiat currency and then i buy what ever i like.

My answer would be yes.
You are purchasing a commodity so they become an asset of yours once in your possession.
Do you have to pay taxes on the value of those assets that you own? If the answer is yes then there you go!  ;D

In the UK certain iterations of gold coin are capital gains tax free and there's no value added tax on gold, but there is on silver. Trouble is the OP isn't declaring tax on the Bitcoins earned to buy them.

That is a double tax on him then.

Agreed.  And 2-3 days into a power outage and Katrina like event, when cell phones don't work for 2FA or basic internet is offline, hard currency (even evil fiat cash) along with silver coins will be very handy.

so this gold you buy with your vegetables, say you bought one ounce for $1200 Euro per oz.  and in a year you sell that one ounce gold coin for $2000 Euro per ounce, right back to the same gold merchant.  In the US you'd owe taxes on the $800 in gains. I think in most countries you'd owe income tax on those gains.

so if the OP is paying for his gold with btc (now worth $600/btc) and he bought these btc back when they were $200/btc - does he owe taxes (not sales tax on the gold) but income tax on the $400 per btc in gains?

in this thread we have 2 answers:

1) no because btc is a 'thing' like gold or silver, so btc for gold is just swapping commodities like buying gold with silver (but same question, your silver was $5/oz when you bought it, and now it's $35/oz, do you ow income on that $30/oz increase in value)?

2) yes, because his btc went from $200 to $600 per, regardless of what he bought with it when he realized the current $600/btc value.

(and then a bunch of terrible answers about "not really it's not real" or "as long as you don't get caught")

So, anyone actually use any of those "buy gold with btc" sites above?

as the price of bitcoin in trading in 580 round about so its mean that people are now taking interest in bitcoin and they are trading it, therefore the demand will increase and hope the price of bitcoin will start increasing.

yes that is right to say the tax on purchasing gold or silver using bitcoin is depending on the state policy. in my country we do not pay any tax while buying gold or silver using fiat currency there fore i do not think that we will pay tax on purchasing gold or silver using bitcoin as there is no notification about bitcoin by our country that either it is legal or illegal currency.

to me i think not a single country has yet impost tax on bitcoin, therefore you dont have to impose tax on buying Gold or Silver. if you are going to buy it using bitcoin. but still it depend on the country policy that either they will allow you to buy something in bitcoin or not.

in our country the sales tax is already included in the price of the product, but on gold and silver i have no clear idea, i thine we also pay tax on gold and silver in its sales price. but we talk about bitcoin i can say that there is special estimate to pay tax on gold or silver while buying it on bitcoin.

to me as bitcoin is not legal in our country, and most of the shopkeepers have no idea about bitcoin therefore they are not going to receive bitcoin for shopping gold or silver, i think still it need a lot of time that the people may know about bitcoin and specially the shopkeepers who are mostly illiterate. and have no ide about computer and internet. 

we have no tax on Gold and even on Silver, both are tax free, but the problem is there here in our area there is not a single shop who are ready to accept bitcoin for shopping Gold or Silver therefore we must convert bitcoin in to our local currency and after that we will be able to buy Gold or Silver.

in Pakistan there is not any kind of tax on gold or silver, we just buy it from shops in markets without paying any kind of tax, so if the shopkeeper is ready to accept bitcoin for shopping gold or silver then you can buy it using bitcoin without paying any kind of tax.

yes there are so many other areas where there is no tax on buying gold or silver, so if you are buying gold or silver you have no tax  to pay, but still it depend on your country strategy if your country has declare bitcoi as legal currency and there is also tax on buying or selling gold then you will certainly pay tax on gold  or silver.

in my area there is no tax on gold, as i have bought so many jewellery for my wife but never pay tax on that, my be the reason is that we are in tax free zone and we do not have to pay tax on gold or silver.

in my country there is no tax on Gold or Silver if you buying i from shop therefore you do not have to pay tax either you are using fiat or bitcoin to buy it.

yes and same is the condition in my area, we are also not paying tax on gold and silver it is really tax free and so there is also no tax on gold or silver even id you are  buying it on Bitcoin.

in my area we are even not paying tax on Gold or Silver even in fiat currency, therefor i do not thing that it is necessary to pay tax on Gold or Silver in bitcoin.

i think if government has not yet consider bitcoin as legal currency then you do not have to pay tax on gold or silver both investment is also illegla to use.

yes that will be right as we have to pay tax on legal things only and no country still consider bitcoin as legal currency therefore we do not have to pay tax on bitcoin therefore there will be no tax on silver or Gold if you are buying it using bitcoin.

if you are earning bitcoin then you don't need to pay tax because there are no clear regulation, however if you exchange it to fiat the government will consider it as income, you are going to be taxed, and in my country buying gold already being taxed, but if you are buying with bitcoin then it will no tax since the government can't track you

We can skip all the complications with taxes and stuff. In theory we have to pay taxes, of course. In practice you can ignore that fact and I think it is easier to do it so, because bitcoin is not actually regulated in the countries mostly. I think it is a good advice to find some people on localbitcoins and sell the btc. Then you take the money and buy the gold if you want to. But keep in mind that btc price can become a lot more than now and gold is just quite stable and reliable.

Your tax payment is required in civil matters other matters is you don't have to pay a tax for bitcoin. But here's what country you live in is important in this regard. Bitcoin has no tax but according to different country taxation system about gold and silver.

I don't think it is right to put tax into bitcoin

Bitcoin is a thing that is tax free.  no government.


I have started earning bitcoin by doing technical jobs

good , do you have ability to code an exchange  , if so PM me.

Greetings sir ,, pay taxes is an obligation for citizens who already have their own income ,, but if in your country there are rules that apply on the use of excessive bitcoin ???

In my country you will be taxed, if you cashed out in a form that the government legalize, like gold silver oil or fiat, you need to pay tax, but if you exchange it to another crypto then you dont need to pay tax

It's pretty much the same over here too. As long as you don't exchange your bitcoins to say € or spend it on something such as gold, electronics, a service ... (pretty much whatever that's worth money) you don't have to pay taxes. But once you spend it you're pretty much going to have to pay taxes. The tax could be income tax, capital gains tax etc. depending on how you acquired those said bitcoins. I recently had to go through some issues regarding taxes on bitcoin so I've got a tiny bit of experience with it.

Interesting, so if I buy gold with bitcoins, I will get gold coins (say) delivered to my home, I don't this will have tax consequences right (precious metal seller don't report to IRS)? Then when I sell gold coins, it can be a taxable event. Any comments? I am living in US.