do i have to pay tax on bitcoins ?

[ivanpoldark]

I have read such tips that take place in the US:

• Wages paid in virtual currency are subject to withholding to the same extent as dollar wages.
• Self-mployed individuals with Bitcoin gains or losses from sales transactions also must convert the virtual currency to dollars as of the day earned, and report the figures on their tax returns
  
• Bitcoin miners must report receipt of the virtual currency as income

I only know that in third party countries bitcoin has no specific legal status, so do not think about it, if you are not US citizen.[/list]

[RodeoX]

...

• Bitcoin miners must report receipt of the virtual currency as income

That makes me wonder about the profitability of mining? So if I mine one coin with a value of $1600, I would owe about 1/3 as income. Leaving me with about $1066. That is without factoring in mining costs. Of course I could hold until the price is higher, but I may have to give up 10% of that growth in cap gains.  Brutal. 

[BurtW]

...

• Bitcoin miners must report receipt of the virtual currency as income

That makes me wonder about the profitability of mining? So if I mine one coin with a value of $1600, I would owe about 1/3 as income. Leaving me with about $1066. That is without factoring in mining costs. Of course I could hold until the price is higher, but I may have to give up 10% of that growth in cap gains.  Brutal. 

Not exactly.  For mining you add up all the coins you mine and price them at the time you mine them.   That is your gross income from mining.  Then you deduct all expenses related to the mining: electricity, supplies, etc.  You can also deduct the allowed depreciation on all equipment: miners, air conditioners, etc.  Subtract all allowed expenses from the gross income.  This is the net income.  You pay the tax on that.

[RodeoX]

...

• Bitcoin miners must report receipt of the virtual currency as income

That makes me wonder about the profitability of mining? So if I mine one coin with a value of $1600, I would owe about 1/3 as income. Leaving me with about $1066. That is without factoring in mining costs. Of course I could hold until the price is higher, but I may have to give up 10% of that growth in cap gains.  Brutal. 

Not exactly.  For mining you add up all the coins you mine and price them at the time you mine them.   That is your gross income from mining.  Then you deduct all expenses related to the mining: electricity, supplies, etc.  You can also deduct the allowed depreciation on all equipment: miners, air conditioners, etc.  Subtract all allowed expenses from the gross income.  This is the net income.  You pay the tax on that.

Ah thanks Burt, that makes sense.
P.S. I'm a Wagner also! We are probably distantly related.

[MB boss]

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 ?

If in your country bitcoin is a legal currency and it is used on the state level even by the state entity and it has a place in your law then it is sure that it will also have a tax on you while if your government do not have approved it as legal for the state then they are not bound to impose tax on you.

[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 ?

If in your country bitcoin is a legal currency and it is used on the state level even by the state entity and it has a place in your law then it is sure that it will also have a tax on you while if your government do not have approved it as legal for the state then they are not bound to impose tax on you.

Another fucking signature spam post with incorrect information.  Got another post for the signature campaign so he can get paid!  Asshole.

[Bobby_C_Lebaron]

One of the hallmarks of bitcoin is that it has not been charged and is not a tax object until now.

[trippedr]

Bitcoin is definitely taxable.  If you sell all of your bitcoin for USD you pay a tax on the profits.  Make sure to check with your local government tax office before failing to pay taxes. 

Can you imagine if the US govt. did not tax BItcoins. If you make money on it, they will tax you. 

[Mpamaegbu]

Since tax is a compulsory monetary level imposed on all income and transactions by the government, it then means Bitcoin must be recognized as legal by the government of a particular country first before it can impose tax on it.

However, whether the government recognizes the use of Bitcoin or not, users of Bitcoin must pay processing fees as transaction costs to effectively receive or transfer it. Whichever, something has to give while using Bitcoin.

[RodeoX]

Since tax is a compulsory monetary level imposed on all income and transactions by the government, it then means Bitcoin must be recognized as legal by the government of a particular country...

Nope. Not in the U.S. anyway. All income is taxable including illegal money. Here is an Illinois tax stamp for weed, for example.

[zulkarnaen]

Paying taxes is a duty of every citizen, but each country certainly has different rules about tax payments in this case bitcoin tax, although there are some countries that require the income taxpayers earned through bitcoin

[Qartersa]

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 ?

Hi!

As of writing, there has been no requirement as to the payment of taxes in our jurisdiction. I am not quite familiar about how other jurisdictions regulate the payment of taxes of Bitcoin usage though.

You have to be fairly familiar about the laws of the land where you are in to ensure that you have not violated any laws. With this safety precaution, you can be certain that your incomes out of Bitcoins belong to you exclusively without fear of parting from it brought about by the power of the State to tax. Apart from the collection of taxes, you might as well end up paying for penalties and/or interests due the government.

I hope it helps.

[ahmia39]

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 ?

Hi!

As of writing, there has been no requirement as to the payment of taxes in our jurisdiction. I am not quite familiar about how other jurisdictions regulate the payment of taxes of Bitcoin usage though.

You have to be fairly familiar about the laws of the land where you are in to ensure that you have not violated any laws. With this safety precaution, you can be certain that your incomes out of Bitcoins belong to you exclusively without fear of parting from it brought about by the power of the State to tax. Apart from the collection of taxes, you might as well end up paying for penalties and/or interests due the government.

I hope it helps.

To date, there is no government regulation on tax obligations for bitcoin owners. Because there's no stipulation of legal status and protection to owners of bitcoin.

[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 ?

Hi!

As of writing, there has been no requirement as to the payment of taxes in our jurisdiction. I am not quite familiar about how other jurisdictions regulate the payment of taxes of Bitcoin usage though.

You have to be fairly familiar about the laws of the land where you are in to ensure that you have not violated any laws. With this safety precaution, you can be certain that your incomes out of Bitcoins belong to you exclusively without fear of parting from it brought about by the power of the State to tax. Apart from the collection of taxes, you might as well end up paying for penalties and/or interests due the government.

I hope it helps.

To date, there is no government regulation on tax obligations for bitcoin owners. Because there's no stipulation of legal status and protection to owners of bitcoin.

Did you read the thread?

No, you did not.

Otherwise you would know that this depends on where you live.  In the US taxes are owed.  This may or may not be true in your country.  Your blanket statement is not true.  READ before you post.

[marketone]

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 ?

If in your country bitcoin is a legal currency and it is used on the state level even by the state entity and it has a place in your law then it is sure that it will also have a tax on you while if your government do not have approved it as legal for the state then they are not bound to impose tax on you.

I agree with you, but the only thing concerns us is because once we are converting from Bitcoin to fiat our bank accounts will reflect the money and governments have right to ask the question to pay taxes on the transaction we have done. So it wise to pay taxes before to get notified by the governments.

[Barbut]

In my country there is no tax on bitcoins, but if you withdraw more then 10k dollars on one bank acouny in one year you can pay some tax on extra profit, at least that was the case with some guy in beginning of this year.
For example Australia had double tax on bitcoins, I mean still have until the 1 July, after that bitcoin will not be double taxed and it will be like any other currency. Check laws in country where you plan to open bitcoin related business.

[Gotottack]

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 cannot really say because there are different tax laws in different countries. You may want to verify it with your very own State law to ensure proper compliance. But insofar as Bitcoin online transactions are concerned, you would only need to pay for the miner's fee and nothing more. There are no tax deductions of any kind in terms of online transactions.

[moooonu]

Actually paying tax depends on your Government's policy. If they take external source of income in tax boundaries then you have to pay tax as you earn from bitcoins.

[marketone]

Paying taxes is a duty of every citizen, but each country certainly has different rules about tax payments in this case bitcoin tax, although there are some countries that require the income taxpayers earned through bitcoin

I agree many countries still not charging any taxes on the usage of bitcoin but the government should take control on bitcoin, once it is controlled by the governments then people will start paying taxes on bitcoin buying and selling.

[stergium]

Paying taxes is a duty of every citizen, but each country certainly has different rules about tax payments in this case bitcoin tax, although there are some countries that require the income taxpayers earned through bitcoin

I agree many countries still not charging any taxes on the usage of bitcoin but the government should take control on bitcoin, once it is controlled by the governments then people will start paying taxes on bitcoin buying and selling.

to me i think those countries who do not have declare bitcoin as legal currency, they do not have to pay tax on bitcoin, and therefore i do not think that still a single country is collecting tax on bitcoin. may be in future when they will consider bitcoin as legal currency then they may start collecting tax on bitcoin.