Spending my Bitcoin on GOLD / SILVER?... Do I have to pay tax?

[yedogleg]

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

[1714322330]

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[PrimusInterPares]

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.

[romero121]

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 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.

[Jet Cash]

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.

[crazywack]

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.

[European Central Bank]

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.

[Hirose UK]

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.

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.

[sengin]

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

[socks435]

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..

[miningdude]

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

[BellaBitBit]

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.

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

[Maesters1-]

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.

[jackg]

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)

[Cresciuanto]

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.

[jackg]

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!

[beerlover]

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.

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.

[GreenBits]

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.

[jackg]

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)!

[Omegasun]

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

[0day]

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.