Quick Question

[RoughLyfe]

Hey,lets say I use a trader and trade for a total of $20K BTC.The $20K BTC was made from trading bitcoin to altcoins and vice versa.Would I get taxed on said 20K?
And are traders themselves taxable?

[Serpens66]

Hey,lets say I use a trader and trade for a total of $20K BTC.The $20K BTC was made from trading bitcoin to altcoins and vice versa.Would I get taxed on said 20K?
And are traders themselves taxable?

so you don't want to trade on your own, but give someone else money to trade with this?
In most countries it is not allowed to buy/sell bitcoins with money from other persons without a money transmitter license, so you have to call it different. Maybe a loan to the trader with interest.

A normal trader, who trades private with his own money of course has to pay taxes. In some countries it is normal income tax.
If you do it the way described above with a loan, of course the trader has to pay the taxes. And you have to pay taxes on the interest you got. (the trader can deduct the interest paid to you from his taxes)

I'm not a lawyer nor a tax consulant

[Beraturker]

The thing is where do you live.. and how do you take your money in your bank..
For example..
If i put more than 24K at once to my account in my country they are going to ask me because it is my personal account

[italianMiner72]

Hey,lets say I use a trader and trade for a total of $20K BTC.The $20K BTC was made from trading bitcoin to altcoins and vice versa.Would I get taxed on said 20K?
And are traders themselves taxable?

if you want to withdraw you dollars from exchange to your bank account to spend it, i think you need to declare it and pay tax.
alternatively, you can get as much as possible services and goods , paying in bitcoin

[Erkallys]

Yes, you may be taxable. This depends from where you come. Banking authorities may also ask you from where come the money. If you want to exchange it for fiat money, I suggest you to exchange it with a physical person for cash. Thus you won't be bothered by anyone.

[KenR]

From  the country I'm from, I'm not taxable for the amount I deposit in the bank as long as the amount is like more than 2 million USD's or something.The bank won't question it unless someone snitches to the Income Tax department.But if I have the same amount deposited by someone else in my bank account then the Bank surely asks for the proof of the income which leads to income tax conditions.

[Erkallys]

From  the country I'm from, I'm not taxable for the amount I deposit in the bank as long as the amount is like more than 2 million USD's or something.The bank won't question it unless someone snitches to the Income Tax department.But if I have the same amount deposited by someone else in my bank account then the Bank surely asks for the proof of the income which leads to income tax conditions.

I think you meant less than 2 millions USD, because this way it is quite weird . By the way, from where are you from ? Most of the time banking authorities think that you are a criminal way before 2 millions USD. Rules seem to be nice in your country, at least about money.

[Moneyburner]

(In the US) Realistically all you would really have to do is report 20k of capital gains and you should not have a huge issue. If you got technical you may have more complications to it...

Logically speaking you would just report that you bought an investment of $xx,xxx and sold it for $xx,xxx +20k

[Amph]

yes you need to pay the taxes, unless you exchange them again in bitcoin, resulting in more coins, here for example in italy you need to pay a 26% taxes on the capital gain from any trading activity

[lorylore]

if talking about government taxes, by right you should report. however, it is very hard right now as a lot of country dont recognise bitcoin as a form of value/possession/properity etc. but one gd reason why u should report is becuz when u decided to cash out all your bitcoin one day, your bank will suddenly have a huge amount of money and the government can questions u for it.

as for getting a trader to help u invest in btc, he will charge a % as commission.

[mobnepal]

In my country even government don't know that i am doing bitcoin trading because lack of regulation. I doubt even cyber crime division here knows about bitcoin and cryptocurrency.
I am personally converting some local currency to bitcoin for trading around 1k without problem. But depends on which country and how you gonna hide your trading activity.

[maokoto]

As far as I know, you do not pay taxes if you keep it in BTC. But one should pay it if the money gets into your regular bank account.

[BigBoy89]

As far as I know, you do not pay taxes if you keep it in BTC. But one should pay it if the money gets into your regular bank account.

Yes that's the fact and one of the main advantage of the Bitcoin over the fiat note that's why I am using Bitcoin for most of my online payment so that I can save my money (Bitcoin = money) and stop my money in form of tax going to the pocket of politicians.

[mixan]

It would all depend on where you reside as each country has their own individual tax laws.
Some countries uphold those being a crypto currency you wouldn't think they would. While some don't such as costa rica or the dominician republic which have lax tax laws there for regular fiat as it is.

[RoughLyfe]

So I live in california,would I get taxed there for using exchanges?

[Serpens66]

So I live in california,would I get taxed there for using exchanges?

you should read all those answers Just for using an exchange you won't get taxed anywhere. But you could be taxed for making profits through trading.