do i have to pay tax on bitcoins ?

[Harry Callahan]

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.

That is the most stupid thing i have ever heard why would a government accept bitcoin as a payment option if a few people are willing to pay their taxes .Let me tell you one thing,not only are they worried about the illegal activities they are worried about the cash flow which would hurt the economy.

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[European Central Bank]

Great to see stupidity still reigning here.

Go ahead and don't pay any taxes on your profits, kiddies.

Let us know how that works out if you're allowed to write from jail.

[LittleBitFunny]

The simple answer is no - in all countries that I know of.  However, you do need to pay transaction fees for miners.

[youdacapt]

The simple answer is no - in all countries that I know of.  However, you do need to pay transaction fees for miners.

If at any time we hear news about the purchase of property/car rental services using bitcoin payments. That is where we are talking about taxes, all things are accommodated into public sphere would be taxed sufficient for development and state services.

Now that doesn't yet exist, and gov just provide physical and income tax to bitcoin exchange market. True if we as customer is only charged a transaction fee. But in future, we should be aware of tax charged, because the welfare and security people come from the government, not of themselves.

[RodeoX]

The simple answer is no - in all countries that I know of.  However, you do need to pay transaction fees for miners.

The simple and complex answer is absolutely yes. There may be a few places like Dubai where you may not have to pay taxes. But almost every country in the world has a tax that covers bitcoin.   I don't know where people come up with this notion that bitcoin is not covered by tax law. Here in the U.S. all your money is taxable. If you found a dollar on the sidewalk you would owe tax on it. It's that simple, a gain in money triggers a taxable event.

[Amph]

The simple answer is no - in all countries that I know of.  However, you do need to pay transaction fees for miners.

The simple and complex answer is absolutely yes. There may be a few places like Dubai where you may not have to pay taxes. But almost every country in the world has a tax that covers bitcoin.   I don't know where people come up with this notion that bitcoin is not covered by tax law. Here in the U.S. all your money is taxable. If you found a dollar on the sidewalk you would owe tax on it. It's that simple, a gain in money triggers a taxable event.

sure if i found a random dollar on the street is taxable, actually this is a bit stupid because in some country of europe they don't tax you for a small sum like that, like they don't tax the homeless people that receive 1 dollar a day by begging

but let's assume that they are taxing even few cent, this is not equal to them knowing that i have found that cent which is simply impossible, thus i'm not obligated to declare anything if for them is impossble to find out

[RealBSteel]

you must pay tax if your country use bitcoin as legal currency

[Amph]

you must pay tax if your country use bitcoin as legal currency

there are no country that use bitcoin as a legal currency, but this not mean that you are not obliged to pay tax, from my udnerstanding you need only to pay if you sell for fiat

if you keep your coins in cold storage no one will say anything, they have also no way to know how many bitcoin someone is holding

[btcdiggingmaster]

Being a wise person of bitcoin usage we have to pay taxes because our governments will make money through taxes only. Each government will allow us to use currency some specific limits, if we reach more than that we have to pay taxes either with Bitcoin, USD, EURO, INR etc.

[marketone]

you must pay tax if your country use bitcoin as legal currency

Till now many people are using bitcoin, but I think only a few people are paying taxes on time by using bitcoin. Government's are still afraid that many people are using bitcoin for illegal activities if people are not paying taxes to government really it will effect on their economics growth. Everybody should pay taxes to a government if they use bitcoin.

[dimonstration]

you must pay tax if your country use bitcoin as legal currency

Till now many people are using bitcoin, but I think only a few people are paying taxes on time by using bitcoin. Government's are still afraid that many people are using bitcoin for illegal activities if people are not paying taxes to government really it will effect on their economics growth. Everybody should pay taxes to a government if they use bitcoin.

The question is how to be possible to pay taxes is thier any country already have tax using BTC?

[brokens]

if in country your illegal can be so You must pay tax on bitcoin.

[darkrose]

in my country for now no tax to use bitcoin, only pay if you transaction to convert local money, i dont know in the future if goverment plan to tax a bitcoin.

[suryana]

in my country for now no tax to use bitcoin, only pay if you transaction to convert local money, i dont know in the future if goverment plan to tax a bitcoin.

And apparently, bitcoin will not be taxable in my country. logically, bitcoin is a free product that is not controlled by a country or a company. So, certainly do not need owners bitcoin pay taxes.

[Nathan047]

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 ?

Here in the United States Bitcoin is classified as an “asset” meaning there are no taxes for receiving Bitcoin, however you are taxed when you exchange Bitcoin for USD.

Of course it varies from country to country, and OP didn’t state where he’s from.

[Amph]

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 ?

Here in the United States Bitcoin is classified as an “asset” meaning there are no taxes for receiving Bitcoin, however you are taxed when you exchange Bitcoin for USD.

Of course it varies from country to country, and OP didn’t state where he’s from.

you put in a way that to me sound like i can use bitcoin(not dumping for fiat first, just use it on various website) in USA to purchase what i want without paying anything is this correct?

if this is correct, the taxation of bitcoin can only do good and incentivate the usageof bitcoin, instead of relying on fiat all the time

[iamTom123]

I think all government except some few will tax you on your income. Now, if you earn some money in Bitcoin like you are doing trading or you sell your Bitcoin at a profit, then the income you gained from those transactions can be taxable. Most governments will not care so much where you got the income as long as you have one. According to tax laws, you should be declaring any and all income that you receive and that certainly include Bitcoin regardless if there is already a law recognizing Bitcoin or not. Here in my country, the government is not yet that aggressive in taxing people who are making money online and I have a sigh of relief.

[coynedterm]

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 ?

Actually all this depends upon the bitcoin holder that whether he wants to pay tax or not .
Let a single thing , if you bought the bitcoin then the amount of deal in your bank Money will go in the year turn over of the year business and in that case you need to pay tax , but if you made buy through cash than you don't need to pay anything .
Well here if your earning is not more than 100 to 500$ a month in bitcoin then forget to pay anything like me .

[Qartada]

You don't have to, but ideally you would.  If you withdraw fiat from an exchange into your bank account you might end up having to pay taxes as it is much clearer where your earnings came from, but choosing a more anonymous option like LocalBitcoins you can almost definitely avoid paying tax.  However, ideally you would just pay the taxes as it brings legitimacy to Bitcoin if governments believe that it will be more frequently declared and taxed.

[BurtW]

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 ?

Here in the United States Bitcoin is classified as an “asset” meaning there are no taxes for receiving Bitcoin, however you are taxed when you exchange Bitcoin for USD.

Of course it varies from country to country, and OP didn’t state where he’s from.

you put in a way that to me sound like i can use bitcoin(not dumping for fiat first, just use it on various website) in USA to purchase what i want without paying anything is this correct?

if this is correct, the taxation of bitcoin can only do good and incentivate the usageof bitcoin, instead of relying on fiat all the time

In the US Bitcoin is treated as a asset (like a stock) for the purposes of taxation.  What this means is that you must keep track of exactly how much you pay for every Bitcoin you purchase in USD.  This gives you the base cost of the Bitcoin in USD.  Then when you either sell the Bitcoin or use it to purchase anything you must use the value received in USD to calculate if you had a gain or a loss on the sale or use or barter of the Bitcoins in USD.

For example:

   You purchased 100 Bitcoins a long time ago for $5 each.  

   Today you trade 50 of these Bitcoins for a car worth $50,000.

To calculate the tax you subtract the base cost from the value received:

   The base cost to you of the 50 Bitcoins was $5 x 50 = $250.

   The value received was $50,000.

So you would owe the capital gains tax on:  

$50,000 - $250 = $49,750

This would obviously be a long term capital gain, which is taxed at a rate of 0%, 15%, 20% or 23.8% depending on your income and tax bracket.  Assuming a tax rate of 15% the taxes you would owe on this transaction would be:

$49,750 x 15% = $7,462.50 (in USD, they do not accept Bitcoin for tax payments)

Many of you will not like what I just said.  Whether you like it or not - however you personally feel about Bitcoins, taxation of them etc. - that is the law in the US.  Failure to report and pay the taxes owed is punishable under the law.  How you feel about it is not material once you are arrested and facing fines, asset forfeiture, and prison.