Bitcoin and paying Tax

[xuan87]

if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin

[gabmen]

if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin

Yeah me too i don't really get the full amount of bitcoin im exchanging. Although i think it's more of transaction fee for the exchanger rather than tax bitcoin here is not that known yet so i don't think bitcoin would be taxed here for the next couple of years

[Skarner21]

I was wondering, if crypto-currency takes off, and a large percentage of the world use it and then decide to stop declaring all income and stop pay taxes, how will governments build roads, support public schools etc? Won't this action raise taxes for the few that pays it and cause total havoc?
Don't get me wrong, I am totally against banks and the idea of keeping all your money in banks (if all bank customers only withdraw 3% of their savings, most banks will be bankrupt, so I am against banks) but what about government that cannot with crypto-currency determine someones income and subsequently cannot tax people to perform basic government duties?

I think what you say is hard to solve right now. If there is no solution for this problem, crypto-currency can not be accepted. In the future, if bitcoin become a world currency, there will be no government anymore, i guess

For now i am happy that bitcoin still have no tax but it is good that we can be accepted bitcoin locally if government accept it more store will open to accept bitcoin as payment.. maybe this coming 2020 we can see some stores locally can accept bitcoin as payment.

[ajun96]

if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin

I think if the government still forced to give taxes to the bitcoin will not run both because someone could manipulate their bitcoin address because bitcoin is anonymous so that the government will not know if you have a lot of money in another purse? bitcoin tax will not be perfect

[RodeoX]

... Also, I'm utterly curious why you are trying to confuse the readers. Weed is legal in Washington state, you can openly buy it if you are over 21 and are going to consume it in the state. So taxing weed is quite in line with it being legal...

I am not trying to confuse anyone, but it is confusing. Weed is illegal in all 50 states. That is the federal law and if a federal prosecutor wanted to he/she could go after a person for smoking. Even though it is legal at the state level. It's an unusual situation.

[amacar2]

There are many ways from which government can atleast get tax on fewer bitcoin related deal within their country, one of which is trying to include tax in all bitcoin sells and buys in trading platforms which are connected to that countries local banks. As well as they should encourage the uses of bitcoin and provide offer of smaller % of tax on purchases with bitcoin than with other fiats this will encourage people to use bitcoin in local stores whose record can be recorded easily etc.

[deisik]

... Also, I'm utterly curious why you are trying to confuse the readers. Weed is legal in Washington state, you can openly buy it if you are over 21 and are going to consume it in the state. So taxing weed is quite in line with it being legal...

I am not trying to confuse anyone, but it is confusing. Weed is illegal in all 50 states. That is the federal law and if a federal prosecutor wanted to he/she could go after a person for smoking. Even though it is legal at the state level. It's an unusual situation.

I got your point. You say that weed is illegal in all 50 states by a federal law, and, at the same time, it has been made legal at the state level. In this way, it all boils down to whether a federal prosecutor can actually enforce the federal law. If he can't (or doesn't want, which is essentially the same), then the given state law would be de facto above the federal one. Though I'm not surprised really. I don't know if that's true or not but I've heard a story about some US court banning the law of gravity...

Nevertheless, if weed is legal in a state, there is nothing unusual if it is taxed in that state

[jtipt]

if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin

It's unlikely for the government to ban the crypto currency but yes they will sure do impose several rules and eventually taxes. Some countries government has already imposed some laws and some for trying. But for some big governments to impose laws it will require a large amount of people using bitcoin on a frequent basis only then governments will charge taxes.

[krishna1]

we are the bitcoiners and it is true that government can not take tax from us but still government has many diffrent ways to get that tax because ultimatly money will pass to someone who has to exchange the btc with the faint and at that point government will charge the tax. we have just lowered the taxasion not completly closed it

[mrhelpful]

regardless - theres going to be methods of avoiding it for those who dont use the cash deposit route.

anyone who does most of their stuff in person - cash in mail - will have mules which avoids all this.

[~Bitcoin~]

Several rich guys are already practising several tricks and ways to bypass bigger amount of government task in fiat transaction also from past several years and even if government find someway to implement tax on bitcoin there will be always way for those who wasn't used to pay tax before in fiat one.

[serjent05]

Well whatever or however bitcoin transaction evade taxes, users like us are not exempt at all.  With all the value added tax on  the items we bought, we are still  giving tax to the government.  even here in my country there is this extended value added tax that even makes these taxes higher lol.

[BitcoinHodler]

you have to be extra careful about matters like this, seeking advice in topics like these is not so wise because you may think you shouldn't pay taxes with bitcoin and read it on this topic too but noone around here has the information needed and in fact government can prosecute you for tax evasion.

[bitbunnny]

The tax regulation of Bitcoin depends from county to country. I think in most cases you don't have to pay tax on Bitcoin itself but you are obliged to pay taxes when you convert it to fiat money on exchangers or similar, so I think majority of people do pay taxes on transactions like this and governemnts have their share of it.

[harizen]

Here in my country, local exchanger reduces the exact conversion of the current btc to usd exchange rate when we are converting our bitcoin to fiat. The said local exchanger is registered under our country's law and they are really complying for the rules and regulations under AMLA.

So even looking at the front desk, still it's like taxable since the rates are not that exact or close to the current exchange rate. Meaning our local exchanger is the one paying tax to the government.

[bamboylee]

if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin

I think if the government still forced to give taxes to the bitcoin will not run both because someone could manipulate their bitcoin address because bitcoin is anonymous so that the government will not know if you have a lot of money in another purse? bitcoin tax will not be perfect

There is no way the government can track down every bitcoin address and tax them. Their only option is to rely on your honesty that you will declare your bitcoin income correctly. And that is a loophole you can always abuse. That is why government will not support bitcoin, because they cannot control it.

[richardsNY]

The tax regulation of Bitcoin depends from county to country. I think in most cases you don't have to pay tax on Bitcoin itself but you are obliged to pay taxes when you convert it to fiat money on exchangers or similar, so I think majority of people do pay taxes on transactions like this and governemnts have their share of it.

It depends. Some countries have stated directly that you have to pay tax over your Bitcoin holdings, and some contries only say that you have to pay tax over your entire fiat holdings. If you have a certain amount worth of BTC, then the fiat equivalent adds to your normal fiat wealth. And over that you have to pay tax.

[blackmachinegun]

if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin

I think though users bitcoin bitcoin achieve a single country can not be given a tax, even if the government forced him though
bitcoin will never be given a tax. so it is impossible to give a bitcoin in taxes. so calm

[Slark]

I think though users bitcoin bitcoin achieve a single country can not be given a tax, even if the government forced him though
bitcoin will never be given a tax. so it is impossible to give a bitcoin in taxes. so calm

It is not impossible to tax bitcoin it is just different from direct tax people usually expecting. Bitcoin p2p transactions, blockchain and bitcoin network of course can't be taxed.
But pretty much everything else can - every bitcoin service: exchanges, online shops, every 'official' bitcoin payment can be taxed.
It will force you to either trade BTC only in a p2p way or not trade at all because of high taxes.

[ajun96]

if too many people is using bitcoin then government will make rules to tax bitcoin transaction and maybe the government will banned bitcoin, but actually now we already pay bitcoin taxes, everytime i exchange my bitcoin in local exchanger they will charge few percent of my bitcoin

I think if the government still forced to give taxes to the bitcoin will not run both because someone could manipulate their bitcoin address because bitcoin is anonymous so that the government will not know if you have a lot of money in another purse? bitcoin tax will not be perfect

There is no way the government can track down every bitcoin address and tax them. Their only option is to rely on your honesty that you will declare your bitcoin income correctly. And that is a loophole you can always abuse. That is why government will not support bitcoin, because they cannot control it.

yeah it because bitcoin has an anonymous system where no name has been written in each address, so the government will not know if the bitcoin addresses which have very large bitcoin is yours lol. yeah that's probably why until now the government was reluctant to accept bitcoin?