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

[abugseuf]

In the UK certain iterations of gold coin are capital gains tax free and there's no value added tax on gold, but there is on silver. Trouble is the OP isn't declaring tax on the Bitcoins earned to buy them.

in Pakistan there is not any kind of tax on gold or silver, we just buy it from shops in markets without paying any kind of tax, so if the shopkeeper is ready to accept bitcoin for shopping gold or silver then you can buy it using bitcoin without paying any kind of tax.

[Superbitzz]

In the UK certain iterations of gold coin are capital gains tax free and there's no value added tax on gold, but there is on silver. Trouble is the OP isn't declaring tax on the Bitcoins earned to buy them.

in Pakistan there is not any kind of tax on gold or silver, we just buy it from shops in markets without paying any kind of tax, so if the shopkeeper is ready to accept bitcoin for shopping gold or silver then you can buy it using bitcoin without paying any kind of tax.

yes there are so many other areas where there is no tax on buying gold or silver, so if you are buying gold or silver you have no tax  to pay, but still it depend on your country strategy if your country has declare bitcoi as legal currency and there is also tax on buying or selling gold then you will certainly pay tax on gold  or silver.

[Universat]

I don't know about other taxes, but at the time when you will buy it then the seller will ask you a price including the sales tax on them, so in that case you will pay the tax.

in my area there is no tax on gold, as i have bought so many jewellery for my wife but never pay tax on that, my be the reason is that we are in tax free zone and we do not have to pay tax on gold or silver.

[Hoor]

in my country there is no tax on Gold or Silver if you buying i from shop therefore you do not have to pay tax either you are using fiat or bitcoin to buy it.

[Superbitzz]

in my country there is no tax on Gold or Silver if you buying i from shop therefore you do not have to pay tax either you are using fiat or bitcoin to buy it.

yes and same is the condition in my area, we are also not paying tax on gold and silver it is really tax free and so there is also no tax on gold or silver even id you are  buying it on Bitcoin.

[zodin]

in my area we are even not paying tax on Gold or Silver even in fiat currency, therefor i do not thing that it is necessary to pay tax on Gold or Silver in bitcoin.

[Dora Doll]

i think if government has not yet consider bitcoin as legal currency then you do not have to pay tax on gold or silver both investment is also illegla to use.

[markyminer]

i think if government has not yet consider bitcoin as legal currency then you do not have to pay tax on gold or silver both investment is also illegla to use.

yes that will be right as we have to pay tax on legal things only and no country still consider bitcoin as legal currency therefore we do not have to pay tax on bitcoin therefore there will be no tax on silver or Gold if you are buying it using bitcoin.

[xuan87]

i think if government has not yet consider bitcoin as legal currency then you do not have to pay tax on gold or silver both investment is also illegla to use.

yes that will be right as we have to pay tax on legal things only and no country still consider bitcoin as legal currency therefore we do not have to pay tax on bitcoin therefore there will be no tax on silver or Gold if you are buying it using bitcoin.

if you are earning bitcoin then you don't need to pay tax because there are no clear regulation, however if you exchange it to fiat the government will consider it as income, you are going to be taxed, and in my country buying gold already being taxed, but if you are buying with bitcoin then it will no tax since the government can't track you

[kryptqnick]

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

We can skip all the complications with taxes and stuff. In theory we have to pay taxes, of course. In practice you can ignore that fact and I think it is easier to do it so, because bitcoin is not actually regulated in the countries mostly. I think it is a good advice to find some people on localbitcoins and sell the btc. Then you take the money and buy the gold if you want to. But keep in mind that btc price can become a lot more than now and gold is just quite stable and reliable.

[Dammitt]

Your tax payment is required in civil matters other matters is you don't have to pay a tax for bitcoin. But here's what country you live in is important in this regard. Bitcoin has no tax but according to different country taxation system about gold and silver.

[learing]

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

I don't think it is right to put tax into bitcoin

Bitcoin is a thing that is tax free.  no government.


I have started earning bitcoin by doing technical jobs

good , do you have ability to code an exchange  , if so PM me.

[zeze18]

Greetings sir ,, pay taxes is an obligation for citizens who already have their own income ,, but if in your country there are rules that apply on the use of excessive bitcoin

[Indrawan77]

In my country you will be taxed, if you cashed out in a form that the government legalize, like gold silver oil or fiat, you need to pay tax, but if you exchange it to another crypto then you dont need to pay tax

[BoXXoB]

In my country you will be taxed, if you cashed out in a form that the government legalize, like gold silver oil or fiat, you need to pay tax, but if you exchange it to another crypto then you dont need to pay tax

It's pretty much the same over here too. As long as you don't exchange your bitcoins to say € or spend it on something such as gold, electronics, a service ... (pretty much whatever that's worth money) you don't have to pay taxes. But once you spend it you're pretty much going to have to pay taxes. The tax could be income tax, capital gains tax etc. depending on how you acquired those said bitcoins. I recently had to go through some issues regarding taxes on bitcoin so I've got a tiny bit of experience with it.

[dfox101]

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.

Interesting, so if I buy gold with bitcoins, I will get gold coins (say) delivered to my home, I don't this will have tax consequences right (precious metal seller don't report to IRS)? Then when I sell gold coins, it can be a taxable event. Any comments? I am living in US.