Taxes on Bitcoin

[DebitMe]

Taxes on bitcoin is actually a dicey area for most governments of the world since its not something that has been with us for ages or time immemorial and this is something facing even the advanced countries in terms of technologies and expertise not to talk of developing countries and third world countries but I see government finding a way around the blockchain technology by getting their own share of the cake by making everyone declare his or her income from whatever means whether electronic or physical with that they get to tax bitcoin in an indirect manner.

How is that any different than the way things are now?  The United States are pretty clear on how bitcoins should be taxed and you have always owed tax on income obtained by whatever means electronic or physical.

Maybe for next time don't be so generic and instead try talking about the laws of your country.  Learn some grammar also and includes some periods and other punctuation

[Amph]

I have a question... so if i cashout 11k BTC in GBP i dont have to pay capital gains right since you get 11k personal allowance per year.  Does it matter what you earn as an income or does income not change captial gains tax?

you need to pay capital gay on the amount you earn by doing trading, you will be taxed on the revenue if those 11k are the net revenue than you need to declare and be taxed on that amount

What about if you are a long term investor? and only buy 1 time and sell 1 time? to me it seems you are aloud to cash in 11.1k in GBP per year of bitcoin and not get taxed ?

it depend on how much you sell per time, there should be a minium under which you are exempt from taxes, but it's not guranteed in all country

here for example under 5k euro per year you don't need to declare anything especially if the funds come from abroad

[dfox101]

In US, the bitcoin is like real estate or gold coin or any other assets you own. It will be capital gain if you hold more than one year or income if less. Same rules as stocks for example.

[DebitMe]

In US, the bitcoin is like real estate or gold coin or any other assets you own. It will be capital gain if you hold more than one year or income if less. Same rules as stocks for example.

I don't think you understand how capital gains work.  It would be a short term capital gain if under one year, not ordinary income.  But otherwise your analysis is spot on, kind of.  Real estate has some quirky rules under certain conditions, but gold or silver is correct.

[mkmdoc]

Each government will provide some rules and regulation on your spending and on your earnings, if you exceeds the limit you need to pay taxes otherwise you will be in problems. If you pay taxes on your transaction than it is a legal one.

[valley365]

New stuff like bitcoin will be taxed, the government can't miss the money that they can collect. Also tax is nothing but to get money for the government, so they will do the best to get as much as possible.

[the rise]

Taxes are not an impediment us to stay in business, in a real job, you also pay taxes for any business that is run. So we think positively, the tax system doesn't rob a fraction of a percent of our income, but to accommodate and ensure ease in the future. We don't have to always do business in secret, needs recognition to be accepted globally.

[btcdiggingmaster]

New stuff like bitcoin will be taxed, the government can't miss the money that they can collect. Also tax is nothing but to get money for the government, so they will do the best to get as much as possible.

What ever it may either bitcoin are gold in either farms you need to pay taxes because you are using it. But i don't think government will charge for minimal transaction, those who are doing bulk transaction might those people should pay taxes to government.

[Blitzboy]

New stuff like bitcoin will be taxed, the government can't miss the money that they can collect. Also tax is nothing but to get money for the government, so they will do the best to get as much as possible.

What ever it may either bitcoin are gold in either farms you need to pay taxes because you are using it. But i don't think government will charge for minimal transaction, those who are doing bulk transaction might those people should pay taxes to government.

How can government over come this solution? I mean, how can they charge the fee of people using Bitcoin? Bitcoin is anonymous, and if there is a hidden company using Bitcoin, the Government can never find out what that company is and there will be on way for them to charge the fee for those bulk transaction

[greentea]

what is the general consensus for US tax on trading in altcoins?

Ex.
Bought handful of BTC from coinbase back in 2014/15
Have cost basis of this.

Used said BTC to buy several alt-coins/crowdsales etc ...

Hold mostly altcoins now, but BTC value is say 3 times amount of BTC from 2014/15.

Does the reporting need to happen only when I go from alt --> BTC --> USD?

Or when I just go back to BTC? thoughts?   

[markyminer]

Taxes are not an impediment us to stay in business, in a real job, you also pay taxes for any business that is run. So we think positively, the tax system doesn't rob a fraction of a percent of our income, but to accommodate and ensure ease in the future. We don't have to always do business in secret, needs recognition to be accepted globally.

i am also in favour  of to play tax on bitcoin earning to my government, because states run on taxes and they can provide different facilities to their citizen if they are collected taxes, but still i am not in favor of effect the originality of bitcoin. and i think its look like very difficult for the governments to implement tax on bitcoin while bitcoin remain anonymous.

[DebitMe]

what is the general consensus for US tax on trading in altcoins?

Ex.
Bought handful of BTC from coinbase back in 2014/15
Have cost basis of this.

Used said BTC to buy several alt-coins/crowdsales etc ...

Hold mostly altcoins now, but BTC value is say 3 times amount of BTC from 2014/15.

Does the reporting need to happen only when I go from alt --> BTC --> USD?

Or when I just go back to BTC? thoughts?   

You will owe taxes when you convert to USD, your basis is the same from when you bought them in 14/15.

[divyam_94]

Tax should be paid to the country from where we are getting from it!! As tax is being paid because we are using the things or facilities of provided by the country for our sake. so as we are using the coins of that country so the tax should be paid to that country.😊

[DebitMe]

Tax should be paid to the country from where we are getting from it!! As tax is being paid because we are using the things or facilities of provided by the country for our sake. so as we are using the coins of that country so the tax should be paid to that country.😊

No, taxes should be paid to any country where they are legally accrued.  I live in the U.S., but if I sell something to another country I could potentially owe taxes there, even though I am not benefiting from the public works of that country.

[Cosbycoin]

It is impossible for any gov't to tax bitcoin.
That is the reason why it was decentralized in the first place.
So no one owns it and no one party can tax on it. Period!

[DebitMe]

It is impossible for any gov't to tax bitcoin.
That is the reason why it was decentralized in the first place.
So no one owns it and no one party can tax on it. Period!

Spoken like a true immature idiot.  Have fun going to jail

[Amph]

It is impossible for any gov't to tax bitcoin.
That is the reason why it was decentralized in the first place.
So no one owns it and no one party can tax on it. Period!

They are taxing it actually, IRS at least is doing it without problem, but it always be true that there will be evasion, but this has nothing to do with bitcoin, fiat world is full of evasion also

from the moment you convert in fiat your traced and therefore taxed if the sum is big enough, i guess for meaningless amount they don't care and probably don't search either, there must be a filled that give them a warning under a certain threshold

[Anarchist]

Here taxs have to be paid if you are making profit with buying/selling. But if you spend a bank transfer to an exchange and then sell some day later for paypal, withdraws to a credit card, sell to a friend for a SEPA, then you are safe

[strasboug]

Tax should be paid to the country from where we are getting from it!! As tax is being paid because we are using the things or facilities of provided by the country for our sake. so as we are using the coins of that country so the tax should be paid to that country.😊

No, taxes should be paid to any country where they are legally accrued.  I live in the U.S., but if I sell something to another country I could potentially owe taxes there, even though I am not benefiting from the public works of that country.

Theoretically yes, but if I sell bitcoin in another country while living in US, that means that I want to avoid tax, and there's no way for IRS to know that unless the foreign exchange will report it which is not the case.

[DebitMe]

Tax should be paid to the country from where we are getting from it!! As tax is being paid because we are using the things or facilities of provided by the country for our sake. so as we are using the coins of that country so the tax should be paid to that country.😊

No, taxes should be paid to any country where they are legally accrued.  I live in the U.S., but if I sell something to another country I could potentially owe taxes there, even though I am not benefiting from the public works of that country.

Theoretically yes, but if I sell bitcoin in another country while living in US, that means that I want to avoid tax, and there's no way for IRS to know that unless the foreign exchange will report it which is not the case.

IRS has more ways of tracking things down than whether transactions are reported to them.