Lost BTC in hard drive failure, still have to pay taxes?

[AimeHob]

If you had big amount of Bitcoin and bought it from exchanges with KYC verification, you should ask your lawyer who's expert on cryptocurrency tax.

Don't rely too much on advice from stranger.

After reading all the comments I found this as the genuine and honest reply to OP.

What I believe is you still have to pay tax because you were entitled to pay tax when you bought the coins so no matter if you lost them or not you are still required to pay tax even so you tell them that you have lost.

It all depends on where you live and how you obtained the BTC.

Where I'm at if I'd just bought it then no. If I got it by earning it and trading if it's above the limits they give then I'm still liable for the tax on those earnings even if I have no way of paying it.

Look at these people who did a million shitcoin trades, wound up with nothing and didn't realise every trade was taxable.

Still, I wouldn't bother mentioning it.

The op has not provided any kind of information to us whether he brought those coins or he earned it via some services he may have provided, and till he doesn’t clarify this how are we supposed to guide him about his tax liability?. @gentlemand how does the taxman find about these trades if the person doesn’t disclose it?, or do taxmen get inputs from the exchanges regarding these transaction can you clarify this part?.

If the OP is saying that he still have to pay tax... then it makes us clear that he must've used some exchange or some way where he has provided the information like KYC etc otherwise he wont bother to ask.

P.S why I am unable to give merit? It says 0 _{don't worry reply me in inbox if someone knows why I have 0 to keep the thread clean}

Regards

[gentlemand]

@gentlemand how does the taxman find about these trades if the person doesn’t disclose it?, or do taxmen get inputs from the exchanges regarding these transaction can you clarify this part?.

It varies from country to country but the IRS in America has contacted exchanges asking for user details and the British equivalent will soon as well.

You may well be fine not disclosing anything but there's no telling what the future holds. One day there might be software that links you to everything you've ever done in cryptoland in less than a second and spits out a bill.

[sovie]

I lost all my Bitcoin to a hard drive failure, do I still have to pay taxes to the Reptilian banking cartel?

Dont know which country you are from. If you have declared bitcoins in your annual tax returns then you have to pay the taxes. Consult some tax lawyer that what your country law says regarding that issue.

[wavug]

I lost all my Bitcoin to a hard drive failure, do I still have to pay taxes to the Reptilian banking cartel?

If your goverment requires the payment of taxes on income when working with cryptocurrencies and if you use an exchange that independently or upon request sends user data to the tax authorities, then you will have to prove that you really lost access to your wallet and most like you will have to provide wallet address on which your BTC is still stored, otherwise the tax authorities will not believe you and will force to pay the tax.

[tvplus006]

I still don't understand why all these people pay taxes for btc.

Pretty much having the fear of alerting the IRS(one way or another) and having them knocking on your door; which is a very reasonable 'fear' to have if you ask me.

They first need to know for sure that I have BTC. In addition, the possession of BTC does not yet indicate that I received a profit. The profit will be visible only when I withdraw money to the card. And here it will be necessary to calculate how much profit I received during the time of BTC ownership.