do i have to pay tax on bitcoins ?

[MartinL]

So, what in your view should a bitcoin holder do? Calculate the price of his stashed coins each year and report a gain or loss depending on whether in the last 12 months bitcoin was pumped or dumped?
This would mean that if you own any jewelry you should do the same and report a gain or loss each year based on its value.

Again, it depends on the specific jurisdiction. Generally speaking there is no tax on holding financial assets–Bitcoin or not. Consequently you aren't required to continuously report the current value of your assets.

However, there is a tax on capital gains in most jurisdictions, i.e. the difference between cost basis and sale price. So the Bitcoin holder in your example doesn't need to report anything until he actually sells his Bitcoins and realizes any profit.

[1714793153]

1714793153

[MartinL]

Perfect example of the total shit this forum has to deal with due to paid signatures.

The policy should be one warning then perm ban anyone with a paid signature.  Ban ALL paid signatures.

First of all what does this post have to do with the topic? It should be in meta, not here. By saying "signatures are shit" in a topic about taxes you are spamming like the rest of them.

He was responding to my earlier comment showing that a large portion of comments in this thread are just account farmers repeating the same message again and again.

[morgand]

so i wanna know do i realy have to pay taxes on bitcoins and does my gov recognize bitcoins as my property and do i have to care about any legal action by  gov on my bitcoin property ?

i think it depends on your country. Some country bann coin payment because coin is annonymous. No information about you have that coin. So they cant get some tax from it. CMIIW
In my country they doesnt know about bitcoin. Still no law and rules about it. They dont even know bitcoin existl.
I dont know about your country, but untill now i dont have to pay taxes.

[PremiumMaster]

so i wanna know do i realy have to pay taxes on bitcoins and does my gov recognize bitcoins as my property and do i have to care about any legal action by  gov on my bitcoin property ?

No you don't have to pay taxes on bitcoin because the gov doesn't recognize bitcoin as a real money. If you really want to make sure the gov can't trace your bitcoins use a VPN. Virtual Private Network.
 A VPN in a nutshell. A vpn encrypts data from your computer to a target ip(websites) so the gov, your internet service provider and hackers can't see what you're doing online.
Think of this
there is person A, B, C, D, and E Person A(You) gives Person(B) a note person B(The VPN) shreds the note into little pieces. Person B then gives Person C(Your internet service provider/gov) the shredded note then Person C gives Person D(VPN server/FakeIP) the note Person D Puts the note back together to make it readable then Person D ships the note to Person E(The target website/Server) Person D(Fake IP) says it from himself but Person A wrote the note.
There is more technical stuff about a vpn that makes it more secured. I won't go in dept but I summed it up pretty well.

Ok I explained what a VPN is to people who are new to it.

I hope this answered your question.

[divyam_94]

Nope! you dont have to be bother as the bitcoin does not involve any third party as also like government so there will be no involvment of the government & if there is no involvment of government then there will be no need of paying tax & it is not a unrecognized money or currency so there is no terror of any issue it is simple digital currency.Therefore there is no need of paying taxes on bitcoin.

[RussiaIsBest]

In Croatia we dont need to pay tax.It depends on ecah country.If in your country you must pay tax then you must pay it when you withdrawal your money to your bank account.

[sir.humus]

Israeli Tax Authority Declared Bitcoin a Taxable Asset,  Not Currency.
So Israeli cryptocurrency users have to pay the 25% capital gains tax every time they sell bitcoin, and bitcoin exchanges and miners charge 17% VAT.
This is a new thing, but I can't see how they are going to enforce it.

[btcdiggingmaster]

In Croatia we dont need to pay tax.It depends on ecah country.If in your country you must pay tax then you must pay it when you withdrawal your money to your bank account.

Yeah every country has different rules on paying taxes, government will always welcome to people who want to pay taxes on using multiple currencies. But even each government will provide some rules and regulation on minimum usage, if people reach more than that means definitely they need to pay taxes on it.

[legendbtc]

If you want to use bitcoin wisely in any form like investment, gambling, trading. If you make any profits from it, definitely you have to pay taxes on it. If you taxes on your bitcoin earning than no government will ban your bank accounts and you won't any notices from government.

[canah17]

so i wanna know do i realy have to pay taxes on bitcoins and does my gov recognize bitcoins as my property and do i have to care about any legal action by  gov on my bitcoin property ?

It really depends on what country that you lived in because some countries doesn't even support bitcoin and they just let it be. furthermore the government will not do anything if they don't support bitcoin they just let it slide for once's but they don't really understand the bitcoin thing but to some countries like United States that really supports bitcoin and they can make tax of it so that they will also earn bitcoin and also you must be able to be wise in all times in bitcoin first you must make profit

[mkmdoc]

If you don't want to face any problems with government it's better for you pay taxes to government on time. Because really it is wise decision so you will not be in any problems if you pay taxes on time to government.

[BitHodler]

If you don't want to face any problems with government it's better for you pay taxes to government on time. Because really it is wise decision so you will not be in any problems if you pay taxes on time to government.

Officially most people here are subject to certain tax laws that also apply to Bitcoin, but you can't blame people for not declaring their tax files in full honesty.

If you play it well, then there is barely any risk in having governments know that you have been avoiding tax through Bitcoin where you get a hefty penalty as result.

You will have to avoid using exchanges where you verify yourself with all your personal details, and also payment services and bank accounts. Basically everything that is asking for your information.

Buying and selling coins should be done locally where you meet up somewhere and complete the deals. It's of course not without risk, but at least you can obtain Bitcoin without verification and all other hassle.

If you want to do trading where you want to put your coins to work, then there are exchanges such as btc-e where you don't need any verification in order to start trading.

Just make sure you don't cash out fiat as you then might get forced to verify yourself. They can lock your coins until you come through with sufficient enough details and scans.

[darkangel11]

If you don't want to face any problems with government it's better for you pay taxes to government on time. Because really it is wise decision so you will not be in any problems if you pay taxes on time to government.

Officially most people here are subject to certain tax laws that also apply to Bitcoin, but you can't blame people for not declaring their tax files in full honesty.

If you play it well, then there is barely any risk in having governments know that you have been avoiding tax through Bitcoin where you get a hefty penalty as result.

You will have to avoid using exchanges where you verify yourself with all your personal details, and also payment services and bank accounts. Basically everything that is asking for your information.

Buying and selling coins should be done locally where you meet up somewhere and complete the deals. It's of course not without risk, but at least you can obtain Bitcoin without verification and all other hassle.

If you want to do trading where you want to put your coins to work, then there are exchanges such as btc-e where you don't need any verification in order to start trading.

Just make sure you don't cash out fiat as you then might get forced to verify yourself. They can lock your coins until you come through with sufficient enough details and scans.

Some exchanges allow for withdrawals up to a certain amount without verification. Also, in case of small sums you can simply take a risk.
That said, there's not much to gain in trying to avoid taxes, because sooner or later you will have to buy something and the bigger the purchase will be the more difficult it will be to hide it.
For instance, try to hide a new house or apartment from the government, good luck with that

[BitHodler]

Some exchanges allow for withdrawals up to a certain amount without verification. Also, in case of small sums you can simply take a risk.
That said, there's not much to gain in trying to avoid taxes, because sooner or later you will have to buy something and the bigger the purchase will be the more difficult it will be to hide it.
For instance, try to hide a new house or apartment from the government, good luck with that

It basically doesn't matter if they allow you to withdraw fiat without verification. If you're serious about your personal details to remain private, then withdrawing through whatever payment service won't be an option.

It's not about buying stuff. It's about keeping the wealth you have sitting in Bitcoin remain only to yourself without anyone knowing who or what these coins belong to.

If you manage to keep your coins hidden from the governments, then you can avoid paying tax over your wealth where in my case that's around 1.2% per year. Then we have to pay tax over our realized profits.

If you take that into consideration, then it's not a question of gaining something with hiding our coins, but more that we don't lose something when the governments find out about our wealth.

[tuvok007]

In most countries you DONT have to pay taxes on bitcoin. BUT when you sell your bitcoin for fiat and you want to pull out that fiat money from your bank account than you HAVE TO pay taxes.For example: in my country if I hold 10 bitcoins I have to pay 0 tax! BUT if I sell my bitcoins for 10000 usd and I convert them into my local currency i HAVE TO pay 2000 USD in my local currency or 20 percent!

[zeze18]

I think as a good citizen has the obligation to pay taxes, but not with the tax bitcoin because each country has different regulations on taxation bitcoin, even in the state where I live there are no rules about Bitcoin taxes,

[hawkins]

well, maybe you do not have to pay taxes on the bitcoin.
bitcoin has been designed to be used free of charge, without having to pay taxes, and it is one of the advantages bitcoin. in addition, we use it on the internet, so we do not need to pay taxes, because it would only provide benefits to the government.

[mkmdoc]

I think as a good citizen has the obligation to pay taxes, but not with the tax bitcoin because each country has different regulations on taxation bitcoin, even in the state where I live there are no rules about Bitcoin taxes,

Whether you are following the rules of your government or not check it with your banks, because many people are paying taxes on bitcoin to the governments. Even though government are not involved in bitcoin but still they are accepting taxes on using bitcoin.

[shield132]

well, maybe you do not have to pay taxes on the bitcoin.
bitcoin has been designed to be used free of charge, without having to pay taxes, and it is one of the advantages bitcoin. in addition, we use it on the internet, so we do not need to pay taxes, because it would only provide benefits to the government.

Well, in reality bitcoin is currency and for goverment it doesn't matter if it's crypto or not, in any case when you have btc business you have to pay tax but it's not for simply bitcoin users which use it for send and receive bitcoin because banks have their fees and bitcoin it's own fee. If you want to withdraw money than bank takes your and their fee.
Yes, bitcoin was created for that what you said but when we talk legal business, it's our duty to pay tax. In my country I don't need to pay fees but when I make transactions, bank automatically takes fees.

[btcdiggingmaster]

I think as a good citizen has the obligation to pay taxes, but not with the tax bitcoin because each country has different regulations on taxation bitcoin, even in the state where I live there are no rules about Bitcoin taxes,

Whether you are following the rules of your government or not check it with your banks, because many people are paying taxes on bitcoin to the governments. Even though government are not involved in bitcoin but still they are accepting taxes on using bitcoin.

Exactly, when you pay taxes to government on time than there many chances that bitcoin be accepted by the governments. Because governments are treating that bitcoin is being used for many illegal activities, so if you pay taxes than it might be good reason for government to accept bitcoin as payment option.