Taxes on bitcoin?

[jeevez]

If I were to sell property in a different country and the buyer were to pay me in bitcoins, would there be any taxes to pay? And when trading in the bitcoins for UK GBP, would there be any taxes to pay then? 

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[nizamcc]

I don't think that you will need to pay any taxes when getting paid in Bitcoins as it won't be traceable.
But when it comes to trading those coins into fiat, it is obvious that tax might be needed to be paid.

[jeevez]

I don't think that you will need to pay any taxes when getting paid in Bitcoins as it won't be traceable.
But when it comes to trading those coins into fiat, it is obvious that tax might be needed to be paid.

What type of tax do you think that it would count as?

[Jeremycoin]

If I were to sell property in a different country and the buyer were to pay me in bitcoins, would there be any taxes to pay? And when trading in the bitcoins for UK GBP, would there be any taxes to pay then? 

I think, y will not get taxes for any Bitcoin transaction. Because the truth is, in Bitcoin transaction the seller is the person who decide the price of the Bitcoin and it could be the buyer too.

[shulio]

If I were to sell property in a different country and the buyer were to pay me in bitcoins, would there be any taxes to pay? And when trading in the bitcoins for UK GBP, would there be any taxes to pay then? 

There will be no taxes involve if you were to trade things by using bitcoin but in country that those bitcoin are illegal you may have some trouble with this trade especially in a large sum of money involve. If you trade bitcoin for UK GBP then all you need is just a verification and just need to pay some trading fee for that

[nizamcc]

I don't think that you will need to pay any taxes when getting paid in Bitcoins as it won't be traceable.
But when it comes to trading those coins into fiat, it is obvious that tax might be needed to be paid.

What type of tax do you think that it would count as?

Normal taxes that you already pay there in UK for your earnings.
I have heard of Capital gains tax, it might be levied upon you based on what you will show in your statements.

[Amph]

it depends how much this property cost, you should declare your income anyway, if you buy a big terrain for example and they will see it, you might get in trouble

i think this is true even in countries where bitcoin isn't regulated

but personally i would not declare, if bitcoin is not regulated, because i can always appeal to the fact that it not in fact regulated

[Yeezus]

I don't think that you will need to pay any taxes when getting paid in Bitcoins as it won't be traceable.
But when it comes to trading those coins into fiat, it is obvious that tax might be needed to be paid.

Of course it is. Once you sign for the house and send payment they'll know exactly who the coins belong to. Unless you're really good at laundering this isn't a good idea. You can't sell a house without leaving all sorts of Paper-trails not to mention providing many forms of documents to prove various things. You will also need to pay property tax. My brother just bought a house in the UK and even though he's worked for the same company all his life and had proof of his earnings the solicitors and bank who gave him the mortgage questioned and investigated his finances for quite some time to make sure he wasn't money laundering as he put quite a large deposit down which was about 70% of the value which they apparently thought was unusual for someone his age. Trust me, it really is a pain buying or selling a house in the uk.

[NUFCrichard]

Yes you have to pay the same taxes as if you were paying in fiat currencies. You can save on the exchange rate if you are buying in a different country though.
If you had a capital gain (unlikely) from the purchase, then you would have to pay tax on that too.

There must be precident of people buying property with commodities..

[Meuh6879]

when you pay a thing ... with bitcoin, you have a stock movment.
and so, a tax (VAT) applied on this.

bitcoin is not taxable.
it's the stock that it is taxable.

[Shindo1988]

This is not something you should be asking for advice on the internet.
You should talk to a legal consultant.

What if you don't declare anything yet the buyer declared his purchase of your property?
What then?

[medUSA]

If I were to sell property in a different country and the buyer were to pay me in bitcoins, would there be any taxes to pay? And when trading in the bitcoins for UK GBP, would there be any taxes to pay then? 

Bitcoin is money. When amount is small, we could pass it as non-taxable. Bitcoin received from the sale of a property is a sizable amount. It is taxable in the local country and your home country. Quite a few countries have tax on GLOBAL income.

This is not something you should be asking for advice on the internet.
You should talk to a legal consultant.

He is right, you should talk to accountants in both the local country and your home country.

[JackRipper]

when you pay a thing ... with bitcoin, you have a stock movment.
and so, a tax (VAT) applied on this.

bitcoin is not taxable.
it's the stock that it is taxable.

Everything is taxable in the U.S. if it's sold for a gain. Until it sold, however, things are still a bit murky since the government considers Bitcoin to be both property and currency depending upon what suits the governments purpose at the time ( officially, it's usually considered property ).

Of course the IRS will consider it taxable. They consider everything taxable. Fortunately, they don't make the ultimate decision. Tax courts do.

My best advice to the OP is not to listen to anybody on this forum. Your question is best answered by a competent tax attorney.

[LFC_Bitcoin]

I don't think that you will need to pay any taxes when getting paid in Bitcoins as it won't be traceable.
But when it comes to trading those coins into fiat, it is obvious that tax might be needed to be paid.

Is that definitely true?
Atm bitcoin is sort of like gambling, why should we have to pay tax.
They can't have it both ways as in refuse to accept bitcoin, refuse to 100% regulate and approve it only to then come and say we owe them tax.
They need to make their minds up.
Can't go half way, reject bitcoin but then want our profits on it.

[BillyBobZorton]

There's no workaround about it. If you bought something less important than a property you could. But if you buy a property directly with Bitcoin you will have to inform to the government anyway, which means they'll ask where that money came from.

[Meuh6879]

Selling property and pay with bitcoins, i think you don't need pay any taxes 

between 2 privat user ... no problem, no tax.
win, win 

[Slark]

There's no workaround about it. If you bought something less important than a property you could. But if you buy a property directly with Bitcoin you will have to inform to the government anyway, which means they'll ask where that money came from.

With transaction of this magnitude when you need to state in documents how much you paid for house. It does not matter whether you purchased house with bitcoin or FIAT, they will convert bitcoins and you will pay taxes normally. If you try to keep your purchase secret, it can bite you in the ass in a long run, I would not do it.

[cyberpinoy]

I don't think that you will need to pay any taxes when getting paid in Bitcoins as it won't be traceable.
But when it comes to trading those coins into fiat, it is obvious that tax might be needed to be paid.

What type of tax do you think that it would count as?

I will think it will depend on how the sale is structured, most places have a property tax that has to be paid when selling land/home, those taxes will have to be paid by someone. Once you exchange the coins to fiat, as soon as that fiat hits your bank it is tracked. If you guys have income tax that would be the tax you will have to pay. Because to the  government it is considered a form of income.

[gentlemand]

If you're accepting bitcoins and immediately converting them then I don't see any reason why there'd be any tax on that transaction. That would be like taxing a bank transfer.

If the taxman comes sniffing then you show them your price, show them the transaction and the conversion into fiat. If you held the coins for a couple of years and prices rose then you'd be looking at capital gains.

If it's a second home and it's gained a large amount of value it's capital gains time but it's no different from accepting any other type of payment.

Best to ask a pro though.

[countryfree]

I don't think there's a single country where it would be legal to pay for a property in BTC.
Most countries have taxes on property transactions, and all property transaction must be registered, with the price in local currency included in the registration process. So you may exchange the fiat income from the transaction in BTC, after the transaction, then to Sterling, and then you'll pay tax. I'd recommend to keep the money outside of the UK.