Bitcoin Forum

The last date of tax filing in the US is April 17, 2018, which is just a few days away. However, reports suggest that Americans aren’t really feeling paying their crypto taxes as being just 3 days away from the end of tax season and only a small fraction of American residents have actually filed their cryptocurrency tax reports.

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Many people don't know that you need to report capital gains and losses on like to like trades because cryptocurrency is labeled as property with the IRS.

Even fewer believe it has an impact because as a US citizen who isn't buying in from coinbase, how will the IRS know about their trades/fork gains/mining profits? Short term, they won't. But when you go to transfer crypto to fiat, the IRS will question how you got so much damn money if you haven't been reporting. Not to mention the IRS / Coinbase audit happened for the previous few years so they may change laws in the future that can be retroactively applied.

Unless you have plans to earn enough to move to an entirely different country, it would be in your best interest to swallow this pill now so it's not more difficult for you in the near to mid future.

Well the reason possibly is the amount of bitcoin at their disposal. Those who have a huge amount of bitcoin at their possession would likely to pay their taxes while those who have small amount would not even dare to declare it. Eventually for us in Asia we cannot escape taxation since the moment we buy bitcoin and we convert bitcoin into our local fiat currency we are paying already the service fee which part of it goes to the government.

that can be the reason, but expectations was high

It depend where you live, how about law there. Many countries don't or can't track crypto assets to charge taxes.
even in place where law very strong like US they also can't tracking crypto assets or very hard to do. So in my opinion most of crypto people don't pay taxes but 30% will do taxes to avoid issued from law

Many people are trying to cheat the system and I think this is kind of protest against the harsh ruling of various countries. However, in my opinion the risk is not worth taking as governments are very powerful and a common man can get in huge trouble for tax evasion on crypto investments .

I have never ever declared or paid any taxes on crypto earnings and honestly can not see why I should? The idea of the crypto currencies is for example that we can get away from the tax system that takes a huge part of our work. To avoid misunderstoods, I am not against paying taxes at all, but I am against paying too much and 25 or even more percent income tax is too much as we also have to pay many other taxes. On top of it, our money loses its value every year caused by inflation!

In my country, crypto taxes are not yet implemented by the government. But our constitution says that anything that used as an asset or income generation must be applied a tax, So, I think it is necessary to pay tax because cryptocurrency is a source of income for me.

Yes, I am in the process of filing my income tax return and I am discussing with my taxation consultant about my financial transactions in the last financial year and he also asked me to provide information about gains from crypto industry. I have paid preliminary tax while cashing out my Bitcoins and now it is time to pay income tax according to the profits. However, it is something that I am doing for the first time as I was not eligible for minimum tax criteria until this year.

Since our bitcoin wealth is not tracked by the government, i wouldn't pay any tax from it because in my country tax money is usually corrupted by the government :D

But that corruption only starts from you,if everyone think the same then country will be filled with corruption only,we no need to pay any taxes to the government as long as we are using bitcoin as bitcoin if we use it to buy something or when convert into fiat we need to pay taxes because it will be recorded on your bank records.

I think the regulation about the crypto in the US still weak and have not the strong law decision. the reason is that the US government is too quick make the crypto regulations tax, and the government has not yet done the maximum socialization about crypto taxes to the public.

however, the US government will soon respond to this matter well, I'm sure everything will be back to normal, and the tax crypto will go well in USA .

well that is only in US!
where i live there are to taxes on cryptocurrency trading and i am doing all my trades in a decentralized face to face way or i am only trading altcoins with my bitcoin which is keeping my privacy so i don't have to pay any taxes to begin with!

I would say everyone should file their crypto currency tax report. Else they will be suffering more than they would have to spend. Read it somewhere that the worst case would be paying up to $250,000 USD fine and some time in prison. Why risk it?
Glad that tax season is almost over. We are about to see some rise on the price.

The US is definitely double dipping by labeling crypto as property. Trades are taxed AND withdrawing is taxed, but I think when crypto becomes more mainstream, they will revisit the idea. Those who hold the money make the rules, and in a world where crypto owners hold the money, taxation rules will inevitably change.

I am from Pakistan and at this time there are no rules made by government about bitcoin earning taxes so at this time I am not paying but I am sure when the next Annual Budget will come there will be some laws created on bitcoin and other cryptocurrency and I am hoping they will add tax on all cryptocurrency earnings.

For now I have never paid taxes from my earnings to work in Cryptocurrency, because our country has not yet applied the rules to pay income tax from Cryptocurrency. and if there is any regulation from the government to pay income tax from Cryptocurrency of course I will pay it.

First of all, I want to say you're wrong. In Russia, as in other countries, there is an income tax. If you change bitcoin to Fiat you are obliged to include this amount in taxes. But in Russia, poor monitoring the completeness of tax payment and it's easier to hide them. In America, everything is much more complicated. But I support Americans not to pay the state only for what it is. Taxes must be earned. I don't pay taxes either.

And the issue is considered tax when transferring? Or do you mean any taxation of currencies? It seems to me virtual money or virtual currency, it is for that and virtual, so as not to be taxed.

No , I am not paying tax for the earnings in cryptourrency because here nothing is clear in India about these things and also government of my country is not in favour to use cryptourrency and they made any rule to not to use bitcoin buy sell with the use of banking sector industries , so here it much complicated for us to use cryptourrency and legal and prope way .
Well here before the new rule in my country I was paying everything honestly but now I don't think it will be better for me to pay tax
Because at one side they restricted to use cryptourrency and at another side they are asking for the tax , so here a type of contraction is happening so why I will pay :/

Sorry, I am from Serbia and I do not understand the tax system in the US. Here we have a tax cut on our salaries directly, so I do not have any dead line or something to pay taxes from my official profit. And towards crypto profit the government still did not decided what exactly to do with that here, as usual they are waiting what EU will say and what strategy EU will take about crypto profit taxation.
So here is my question: if there were people who paid taxes from their crypto profit, then they must be calculated the price for crypto in that concrete moment and paid in dollars, right? or how?

Don't pay taxes on Crypto! Government doesn't own bitcoin, they pay you if you lose money on Crypto? No! So why should you pay if you earn? This is a no sense story.

If you are holding, and not cashing out your bitcoin, then you cannot be taxed on it right?
What happens if you are paid in bitcoin, and spend bitcoin?

The way I understand it, the government wants to tax you on the fiat money you get from crypto, so if you do not cash out, surely that means no tax?

What happens if you have a bitcoin debit card for every day transactions in the real world?
I have a bitcoin debit card that is not even issued in the country that I live in. How does tax work in this case?
I have heard that at the moment you do a trade, and your bitcoin is converted to fiat, there is a tax that then needs to be paid, so how does that work with a debit card that is issued in a foreign country?

What happens if you are a miner earning bitcoin. If you invested dollars to buy X amount of bitcoin, and have a loss due to the price decline, can you claim your losses?

It seems that people are either for or against paying taxes on their crypto if their government considers it as a taxable asset. The latter may be for a few different reasons. For one some believe that if your BTC wealth cannot be tracked unless it is then converted to fiat for cash or a physical good that is then expected to be reported as an asset. Others are riding the wave of BTC liberating us from the confines of controlled currency, against further supporting them by paying taxes. For those for promoting the payment of tax, they only seem support the idea of keeping a vital country through tax payments. And some have made the intelligent remark that we are being overtaxed (as Americans) and our tax money is misspent.   

The tax law in my country is quite complex and many people have not idea how much tax they should pay for their crypto. Some people think that they have to pay for every crypto transaction they have ever made which is something ridiculous. Since I didn't sell any of my BTC, I am not going to pay any tax for it. It's simple, isn't it? It's a good thing that it's impossible for the government to tell have much exactly money I own in cryptocurrencies. I am a bit afraid that they might try to discourage investors from buying Bitcoin by applying huge taxes.

well no, and bitcoin user here in the philippines is not issuing to pay taxes in their income profit in bitcoin but i may pay some charges to block chain i thought that is enough how ever we are not paying taxes yet and i hope that we dont need to do that

Exactly. The transactions are sometimes very heavy especially when bitcoin was soaring in December so why not tax the miners because that is where all the costs of transactions go to.

I had a decent tax bill this year due to crypto however I rather pay my taxes for piece of mind. Greed doesn't payoff.

If you buy from big exchanges like coinbase and binance then one day you will have a hefty tax bill. Better off looking at decentralised exchanges and focus on privacy coins. Look at BISQ and pick out some anonymous coins to stay under the radar

It is illegal to trade in cryptocurrency without paying the taxes. suggestion to pay taxes on income from this trade.

My country doesn't have cryptocurrency tax regulations yet, but they do have taxes for investments, etc. Since I haven't reached the bracket to report I have not reported them yet, but when / if I get there I will be sure to do so because if I ever want to convert those earnings to fiat and transfer them to a bank account here there will be a lot of questioning.

I would if we have such kind of laws, but in the meantime, the government is focused on eliminating fraudulent activities that uses the word "cryptocurrency" on their advertised services. Frankly, our BIR would not know for certain who evades taxes in an instant, but once they noticed that your lifestyle changed vastly and you managed to buy expensive things, they would soon start to conduct an investigation and your local bank provider would likely cooperate and send red flags if they see any. The best thing to do is just comply so as not to face life behind bars once you get caught.

In my personal opinion, I think this is a correct view. Because the US government has not intervened in any illegal activities involving the Crypto market, so they will not receive any taxes from investors.
Unless they protect investors by law and handle fraud, they can be taxed.

I am paying taxes on my crypto earnings. There is no way to avoid it as government is especially after defaulters in my country and sending them legal notices.

In Austria you dont pay taxes if you hold them longer than 1 year. As I dont plan to trade but hold, I dont need to pay any special taxes for it :)
I believe its the same for germany.

yes in india we are paying crypto taxes  on time to avoid penalty we cant avoid taxes in india

I would say everyone should file their crypto currency tax report. But in Russia, poor monitoring the completeness of tax payment and it's easier to hide them.

There is no certain bitcoin tax regulations in my country, bitcoin is not banned or accepted as currency or asset, my country let's their citizens to use bitcoin but if there is any problems then my country will not get involved.

Of course not what sis you expect? If there is the way to go around taxes I don't see any reason why wouldn't I use this way and thus escape paying taxes. To pay taxes to government which already has enough is ludicrous,  specially with using crypto. Don't remember that they can only try to make you to pay taxes but they surley can't find out the exact amount if you are good with hiding. I love crypto because with it it is relatively easy to evade taxes which is great. More money for us, no one is stealing more and I am not obligated to pay and go to jail if I don't pay. Where's the freedom.

until now I have never reported and paid my income tax from cryptocurrency, and I do not feel that it is necessary. in my country, cryptocurrency is still a very strange thing, even the government has not been able to provide regulation-related policies and future cryptocurrency in this country. the results of the G20 meeting yesterday also proved that my country is still in a neutral position. I will not pay any cryptocurrency tax until there is a clear statement or regulation and law from the government

Well as the government only take taxes to those announced taxable goods and belongings. So some citizens tend to be anonymous than announce they have crypto earnings. As crypto has a feature of anonymity which they can use to avoid tax without even known.

I think if we want to regulate bitcoin trade, we should paying taxes for our bitcoin. Bitcoin right now is like an assets and regulation said that assets should pay taxes. I think paying taxes will be good for cryptomarket in the future because thats mean government recognize bitcoin trading

Depending on the country you live in, you either have to pay your taxes or not. Most part of the Asia like the Philippines is still doesn't that much regulations to tax Bitcoin. Actually, stores here accept Bitcoin as payment now, there are even actually stores that exchange Bitcoin to real fiat not in the internet. But I think one day cryptocurrency would be regulated and taxed because more people are more likely to use it in the future. I hope it wasn't harsh though.

This is depending on the country you live. Not every country has the regulations regarding cryptocurrencies and how they treat them. But in most countries that regulate Bitcoin you don't have to pay taxes on Bitcoin itself, so if you just keep it in your wallet but you have to pay taxes on transactions, so when you exchange it for fiat or if you are registered trader like on localbitcoins.
In fact you have to pay the taxes only if you are doing some kind of business with Bitcoin.

Thank God in my country there is no legislation that regulates crypto currency !! No taxes! ;D

Like any income, Bitcoin should also be reported as an income. What most people didn't keep is a record of bank transaction they used to buy crypto (fiat>>crypto) Depending on the country it can be a huge error. I keep track of everything, I can't afford to have a problem with the taxes dept.

Upto now,I had not payed any taxes for cryptocurrency. Because Bitcoin is used as a asset in my country.Even I had my saving in bitcoin, I know the price of bitcoin will reach 30,000$ by this year end.Who say No to the additional dollars. If you have a habit of holding the bitcoin, you will get more dollars in one day.

I'm very glad that in my country there are no laws that regulate crypto-currencies)

maybe they have Bitcoin less 0.1 satoshi, so it looks like it's very small for taxable.

but I also know less about taxes for Cryptocurrency, because in my country there is no tax for crypto

hopefully in the future his government can better review again to better about Bitcoin and its other Altcoins.

This is only for the people living in the US and i am sure most of them will pay this crypto tax. Experts are of the view that bitcoin price is also down because of this tax which was due on US citizens on 17 April. Once that is gone, people now are heavily buying  bitcoins and price will again begin to rise sharply.

I', paying my Crypto Taxes but It's depends on your country's law that you should give the decision

I would agree that there is no such thing as tax in bitcoin, if this is taxed then other users will be disturbed in terms of payment and also in the case of good and true business.

In my opinion, it depends on a country if they are regulating crypto. As far as i know, the government has not regulating it yet. They have no rights to to ask for any tax payment. Even in our country, the government has no power over crypto. If time would come that cryto would be centralized then people are oblige to pay taxes.

This is like anything else, people feel that they're not going to get caught and that they're above the law. Yes, some of you may be able to make it out and not have to pay any taxes -- but you're not going to be able to show this money ever. So, if you don't pay taxes on the capital gains that you incurred with Bitcoin you're going to be screwed if you want to buy a house with the money, or a car, (and so on and so forth) While it does suck to have to pay your taxes, you're going to have to or you're going to risk an audit that could really screw you with penalties.


Not true, most (if not all countries) have capital gains tax that Crypto gains are going to apply too.


This makes no sense, just because there is no specific tax doesn't mean former taxes (such as capital gains) don't apply.