Bitcoin and tax

[Irn-Bri]

I noticed more and more bullion and coin sites accepting Bitcoin as payment. Got me wondering from a business point of view what are the tax implications for these businesses. I'm guessing they don't have to declare anything as they are sending bullion for Bitcoin and not money.

[pawel7777]

Wrong. Off course they do have to declare revenue/profit/pay taxes on bitcoin sales. And if those businesses use BitPay/Coinbase processors, likely all of the income will be converted to fiat.

The 2 main reasons for Bitcoin popularity among bullion dealers probably are:

1- Lesser risk of fraud. BTC txs are irreversible. Some sites would even incentivise customers to bay with BTC by offering discounts.
2- Both Bitcoin and precious metals are popular among the same group of people, who doesn't have much trust in fiat currencies.

[duts_bg]

I think this is due to increasingly strong feeling somewhat consciously, partly unconsciously, the dollar is at the end of his time as a global reserve currency. The other point is that governments are still not optimized tax policy in this area, so that they can derive maximum. Trade with BTC and now is subject to taxation, but for European countries is one for USA else.

[Maesters1-]

as ye no country has legalize bitcoin therefore we cannot think about the tax. i think no country has yet apply tax on bitcoin. and the reason is that they have not yet legalize it. when they will regulate it then they will defiantly impose tax of bitcoin.

[hermanhs09]

I noticed more and more bullion and coin sites accepting Bitcoin as payment. Got me wondering from a business point of view what are the tax implications for these businesses. I'm guessing they don't have to declare anything as they are sending bullion for Bitcoin and not money.

Well, i was paying out some money out of few gambling site's and same from bitcoin trading.
And i think i dont pay tax for them,so if i would get a big amount of money every month,i could get in trouble right?

[BellaBitBit]

A business will still have to pay their local state and sales taxes as well as federal.  If bitcoin is to gain legitimacy as a currency it will need to be taxed.

[mishra1994]

Bitcoin is not regulated by any government so there is no tax in bitcoins yet now in any country i think.And even if they take tax.. no government can know how much btc you are holding in your wallet or what is your wallet.

[hermanhs09]

Bitcoin is not regulated by any government so there is no tax in bitcoins yet now in any country i think.And even if they take tax.. no government can know how much btc you are holding in your wallet or what is your wallet.

yeah that what i was thinking all the time.
This may yield some problems to the bitcoin/bitcoin community,because goverments never likes tax evaders,
so i hope the thing about  it will be fixed correctly.
I would not like to pay taxes for btc also

[mindrust]

If you are willing to pay taxes, you can report your income and pay your share. Nobody can prevent it. Otherwise, be wise and do it like everyone else. If you don't report anything, there won't be any taxes to pay. Be smart.

[Cresciuanto]

i think bitcoin is free of tax in all over the world in the present time. still no such country impossed tax on bicoin. actually in most of the countries bitcoin is no registered by the governments. so they have not impossed tax on bitcoin.

[pawel7777]

i think bitcoin is free of tax in all over the world in the present time. still no such country impossed tax on bicoin. actually in most of the countries bitcoin is no registered by the governments. so they have not impossed tax on bitcoin.

You're very wrong.

[MustafaJohnMing]

I noticed more and more bullion and coin sites accepting Bitcoin as payment. Got me wondering from a business point of view what are the tax implications for these businesses. I'm guessing they don't have to declare anything as they are sending bullion for Bitcoin and not money.

Depends.
Gambling sites can as well as porn sites too. A few days ago I noticed on some other sites too.
But not all sites declaring it. They just do it and customers pay without attention to that fact.

[Daisy14]

Anybody that makes money online has to declare how much he makes and pay tax, one way or the other they still have to pay taxes.

[StoreBit]

Anybody that makes money online has to declare how much he makes and pay tax, one way or the other they still have to pay taxes.

but i think the tax they are paying is is not income tax. i think they only pay the  bank charges and the company charges  who transfers the payment. because if bitcoin is not legalize in a country then how can the govt collect income tax on bitcoin.

[abugseuf]

Anybody that makes money online has to declare how much he makes and pay tax, one way or the other they still have to pay taxes.

but i think the tax they are paying is is not income tax. i think they only pay the  bank charges and the company charges  who transfers the payment. because if bitcoin is not legalize in a country then how can the govt collect income tax on bitcoin.

yo want to say that a country cannot impose tax on anything which are no legalize by the govt. actually i have no idea about this. but i think that will be right. govt cannot impose tax on those idem which are no register with government.

[Cresciuanto]

A business will still have to pay their local state and sales taxes as well as federal.  If bitcoin is to gain legitimacy as a currency it will need to be taxed.

and if the government has not yet legalize bitcoin then then how is it possible to do trade in bitcoin. the government will not allow any one to use bitcoin unless they have not yet legalize it.

[GreenBits]

To the best of my knowledge,  while you do have to claim bitcoin if your total asset worth is being evaluated, you are only taxed when you convert bitcoin for value. Be it fiat, a house, etc. When you convert the value to another form, you have experienced a capital gain; in the States, along with everything else, the government gets a piece of the action. So, you can mine til the cows come home, and you should claim said coins. But you won't be taxed until you sell or trade the coins.

[0day]

Bitcoin is till now did not accepted by any of the government so how can they create laws for that currency, if they started to make laws for this currency and started to take taxes on it then it will mean that this particular government has approved that currency.

[Superbitzz]

Bitcoin is till now did not accepted by any of the government so how can they create laws for that currency, if they started to make laws for this currency and started to take taxes on it then it will mean that this particular government has approved that currency.

i thank first they have approve it in their national assembly. and after they they will prepare law and rules, regulation for this currency. and after that they will impose tax on bitcoin.

[Sontoloyo]

Yes that's the one factor why there has been no central bank validating bitcoin as a legitimate means of payment, so only as a commodity