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enquirer (OP)
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June 07, 2016, 12:50:18 AM
Last edit: June 07, 2016, 01:14:58 AM by enquirer |
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My friend holds some bitcoins from long ago, some bought on MtGox, some mined with Deepbit mining pool, and keeps them in a Trezor. But he would prefer to keep them in an official institution, like Circle or Coinbase, for insurance, security and estate planning reasons. The question is, if he deposits it into a Circle account, what's his immediate tax liability? He can't really prove anything about the origin of coins. He has a few emails from Mtgox and Deepbit, but these emails are easily forgeable and don't even account for all of the coins. Does that mean he has to pay 39.6% + state tax + social security + medicare etc?
Moreover, these coins have been bought/mined while being a resident of another country, and imported into US (though again, there is no proof of it). As far as I understand capital imported by immigrants is not taxed.
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Maesters1-
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July 10, 2016, 09:59:34 PM |
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legalization of bitcoin is a big issue. yet not a single country has legalize it. but i am hopeful that they must be thinking about it. and hope that in near future you will see that most of the countries has legalize it.
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Snorek
Legendary
 Offline
Activity: 1400
Merit: 1001
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July 11, 2016, 01:47:48 PM |
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Op, as to address your concerns. There is no way for any institution e.g. IRS at this point to track origin or every bitcoin owned by people.
Bitcoin is not easy to track or 'prove country of origin' (would it mean country where it was mined, or maybe where first transfer of freshly mined cons to wallet occurred? or something else here?)
and I am sure if BTC will ever be fully legalized every existing bitcoin will be 'cleaned' so you don't have to worry about origin of your coins at all.
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Cresciuanto
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July 11, 2016, 04:09:52 PM |
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legalization of bitcoin is such a big problem. in previous days i have read a statement that japan and China has passed some bill in favour of bitcoin. they gave the right to the people that they can use bitcoin just like other currencies.
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abugseuf
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July 15, 2016, 08:51:37 AM |
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legalization of bitcoin is such a big problem. in previous days i have read a statement that japan and China has passed some bill in favour of bitcoin. they gave the right to the people that they can use bitcoin just like other currencies.
yes i also agree with you. but i think this problem should be solve now because it will impose a very bad effect on the status of bitcoin. i think china has now taken a step about the legalization of bitcoin. |
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yenxz
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July 15, 2016, 11:51:33 AM |
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My friend holds some bitcoins from long ago, some bought on MtGox, some mined with Deepbit mining pool, and keeps them in a Trezor. But he would prefer to keep them in an official institution, like Circle or Coinbase, for insurance, security and estate planning reasons. The question is, if he deposits it into a Circle account, what's his immediate tax liability? He can't really prove anything about the origin of coins. He has a few emails from Mtgox and Deepbit, but these emails are easily forgeable and don't even account for all of the coins. Does that mean he has to pay 39.6% + state tax + social security + medicare etc?
Moreover, these coins have been bought/mined while being a resident of another country, and imported into US (though again, there is no proof of it). As far as I understand capital imported by immigrants is not taxed.
Not all states legalize bitcoin but I hope that all countries are slowly but surely will legalize bitcoin like japanes country that already use bitcoin as its currency . |
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Cresciuanto
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July 15, 2016, 04:25:53 PM |
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My friend holds some bitcoins from long ago, some bought on MtGox, some mined with Deepbit mining pool, and keeps them in a Trezor. But he would prefer to keep them in an official institution, like Circle or Coinbase, for insurance, security and estate planning reasons. The question is, if he deposits it into a Circle account, what's his immediate tax liability? He can't really prove anything about the origin of coins. He has a few emails from Mtgox and Deepbit, but these emails are easily forgeable and don't even account for all of the coins. Does that mean he has to pay 39.6% + state tax + social security + medicare etc?
Moreover, these coins have been bought/mined while being a resident of another country, and imported into US (though again, there is no proof of it). As far as I understand capital imported by immigrants is not taxed.
Not all states legalize bitcoin but I hope that all countries are slowly but surely will legalize bitcoin like japanes country that already use bitcoin as its currency . do you have any proof that Japan legalize bitcoin. i think there is yet not such conformation about the legalization of bitcoin in Japan. and it true i think that will be a remarkable change in the world of bitcoin. |
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PsursV
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July 15, 2016, 06:52:16 PM |
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legalization of bitcoin is the problem of most of the countries of the world. some countries have consider bitcoin as illegal but some are still thinking about it either to legalize it or consider it as illegal.
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olubams
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July 15, 2016, 09:54:49 PM |
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I believe the issue affecting Bitcoin is the threat its going to pose to the country's legal tender as this will go a long way in even the legality of being subjected to tax in the first place... My 2 cents
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Cresciuanto
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July 16, 2016, 03:37:37 PM |
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I believe the issue affecting Bitcoin is the threat its going to pose to the country's legal tender as this will go a long way in even the legality of being subjected to tax in the first place... My 2 cents
yes the legalization issue really affecting the value of bitcoin. if the problem is solved i think the bitcoin will hit the market. it willl then become a legal currency just like our local currencies. but it will be use equally in all over the world. |
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0day
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July 19, 2016, 10:07:00 PM |
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Last month when I was going to withdraw my money to my bank account then I was asked for the proof of the source of income, so I send them the link of exchange from where i earn with trade, I also send them the link of this forum and told them the way that how I earn here, plus I also send them the links of my websites and blogs from where I earn through ad network. So they accepted it. I think he should have to do like that.
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Hire me for your campaign management
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abugseuf
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July 20, 2016, 09:47:10 AM |
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Last month when I was going to withdraw my money to my bank account then I was asked for the proof of the source of income, so I send them the link of exchange from where i earn with trade, I also send them the link of this forum and told them the way that how I earn here, plus I also send them the links of my websites and blogs from where I earn through ad network. So they accepted it. I think he should have to do like that.
i think that is their legal process and they are bound to do conformation about the income of a person and specially when he is earning in using internet. but that is a good thing that they accept your statements and proof of income. |
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Bitware
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July 20, 2016, 12:23:12 PM |
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Bitcoins are legal until a law is passed to make them illegal.
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Gahs
Sr. Member
Offline
Activity: 294
Merit: 250
Minter
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July 21, 2016, 08:13:10 PM |
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I can mine bitcoins in one remote village in China, travel down to the U.S. to spend it and no one will know where I got it from. Bitcoin wallets are not like bank accounts where you need proof of address and government ID to operate.
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PsursV
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July 22, 2016, 12:03:13 PM |
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I can mine bitcoins in one remote village in China, travel down to the U.S. to spend it and no one will know where I got it from. Bitcoin wallets are not like bank accounts where you need proof of address and government ID to operate.
yes that is a fact. and that is why people says that it is not regulated. if the countries are going to legalize it they will also legalize it and they will also impose tax on bitcoin. yes in present time bitcoin legalization is the main issue of bticoin. and if the problem solve then you will see that bitcoin will become more popular and effective. it will keep its position more stable then. |
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Maesters1-
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August 29, 2016, 07:39:48 PM |
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Last month when I was going to withdraw my money to my bank account then I was asked for the proof of the source of income, so I send them the link of exchange from where i earn with trade, I also send them the link of this forum and told them the way that how I earn here, plus I also send them the links of my websites and blogs from where I earn through ad network. So they accepted it. I think he should have to do like that.
i think you will have converted your bitcoin into your local currency and you have paid tax on your fiat money, and your bank was just verifying your source of income that is why they accept your proof. but it does not mean that your band accept bitcoin. |
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PsursV
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September 06, 2016, 07:26:39 PM |
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Bitcoins are legal until a law is passed to make them illegal.
bitcoin is a currency and no one has the right to introduce another currency in a state again the national currency of the state, and if person is doing so he is breaking the law and he will be put in jail. so legalization of bitcoin is really a big issue and that issue must be solve very soon. |
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Dora Doll
Member
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September 23, 2016, 06:11:40 PM |
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i think legalization of bitcoin is the man issue, and this issue must be solve on priority basis because it will make bitcoin more reliable and trusted and more and more people will start using bitcoin in future,
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tahirkhanmrd
Newbie
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Activity: 8
Merit: 0
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September 27, 2016, 02:31:14 PM |
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legalization is the main problems of bitcoin if this problem solved bitcoin will become more stable.
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BellaBitBit
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September 28, 2016, 01:09:39 AM |
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Legalization of bitcoin is an interesting issue and differs across continents. I believe you have to pay taxes once you sell the bitcoins for "regular currency", eg USD. If you are sending them from a wallet to an exchange I do not believe there is a tax liability until you officially take profits by converting them into the currency of your country.
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I love Bitcoin
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