Bitcoin and paying Tax

[tabas]

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?

And I don't think is the government will regulate and implement taxing bitcoins. Because they are not able to control it and every transaction there is already miners fee and we, bitcoin users are already treating those fee already as the tax that are automatically deducted everytime we are transacting or sending bitcoins.

[mirakal]

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?

And I don't think is the government will regulate and implement taxing bitcoins. Because they are not able to control it and every transaction there is already miners fee and we, bitcoin users are already treating those fee already as the tax that are automatically deducted everytime we are transacting or sending bitcoins.

If that is the case then it would be easy for it not to legalize bitcoin, we shall be using our bitcoin in online transaction only but merchants will not accept bitcoin because that is bad for their business in tax issues, they do not want to be penalized either if there are rules that will make it illegal in using bitcoin.

[diodio5]

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 certainly the government will think how to profit when the whole community began using bitcoin, but you know that decentralized bitcoin so I think the government will not be able to give taxes to the bitcoin because of decentralization,

[MingLee]

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 certainly the government will think how to profit when the whole community began using bitcoin, but you know that decentralized bitcoin so I think the government will not be able to give taxes to the bitcoin because of decentralization,

They could definitely tax Bitcoin through records provided from online exchanges, and thus the only way you'd be able to avoid a lot of these issues would be to exchange physically, into cash, effectively avoiding a "normal" exchange and thus avoiding the records the government can use. Or the government may opt to introduce subscription-based programs for public services to compensate for unenforceable taxes.

[shinratensei_]

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 certainly the government will think how to profit when the whole community began using bitcoin, but you know that decentralized bitcoin so I think the government will not be able to give taxes to the bitcoin because of decentralization,

They could definitely tax Bitcoin through records provided from online exchanges, and thus the only way you'd be able to avoid a lot of these issues would be to exchange physically, into cash, effectively avoiding a "normal" exchange and thus avoiding the records the government can use. Or the government may opt to introduce subscription-based programs for public services to compensate for unenforceable taxes.

I never think if the government is wanna for taxing bitcoin, but seriously I just wanna for waiting for the systemic structure of the government about the system for taxing bitcoin, and especially bitcoiners is always having more than 1 wallet and how the government's way for passing it?

[betohell]

I thought that was very odd when you receive a tax when earning from bitcoin, how to calculate the property tax using bitcoin? whereas very anonymous bitcoin

[panju1]

I thought that was very odd when you receive a tax when earning from bitcoin, how to calculate the property tax using bitcoin? whereas very anonymous bitcoin

Why calculate property tax? If you earn bitcoins for providing a service, it is income?
It is very easy to value the bitcoins you receive.

[BuySomeBitcoins]

No matter the currency you use, you will have to pay taxes in the country you do your activity.

Either you accept USD, EURO, BTC or Potatoes, the tax service of that country will track you down and make you pay your taxes.

[ipanks]

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 certainly the government will think how to profit when the whole community began using bitcoin, but you know that decentralized bitcoin so I think the government will not be able to give taxes to the bitcoin because of decentralization,

They could definitely tax Bitcoin through records provided from online exchanges, and thus the only way you'd be able to avoid a lot of these issues would be to exchange physically, into cash, effectively avoiding a "normal" exchange and thus avoiding the records the government can use. Or the government may opt to introduce subscription-based programs for public services to compensate for unenforceable taxes.

I never think if the government is wanna for taxing bitcoin, but seriously I just wanna for waiting for the systemic structure of the government about the system for taxing bitcoin, and especially bitcoiners is always having more than 1 wallet and how the government's way for passing it?

maybe government will just count the amount of the money that will we withdraw into our bank account, and for bitcoin itself, i think there are no tax we should pay except the fee of sending bitcoin.

[Kakmakr]

Was their any stipulation in the Satoshi White paper where it states that Bitcoin was developed to assist in Tax evasion? Nope. A lot of people are using Bitcoin in a regulated environment. < Coinbase, BitPay, Circle, etc. > and these people's accounts are linked to their bank accounts. They pay their taxes and they operate within the laws of their countries. The rest, will bring the IRS onto themselves, when they are audited and it was found that they are using Bitcoin or any other Crypto currency to bypass taxes

I'm afraid that the rest reside in China, and they would just laugh in the face of the IRS. I don't know how Bitcoin is taxed in China, if ever (everyone is welcome to chime in on this matter), but if the Russian government finally accepts Bitcoin as a foreign currency, no one will be paying taxes on it just like no one had been paying anything before. Since exchange operations with a foreign currency can be conducted only by institutions that have a Central bank license (read banks), cash and non-cash currency exchange is officially considered as an activity that can be undertaken only by banks in Russia...

But no one actually follows these rules in respect to, say, US dollars, and even less would do in respect to Bitcoin

I have taken one example with the IRS in the USA, but in other countries people might be doing the opposite. Take this as a example of what may be going on in other countries, "What is the national pastime of China? If you answered gambling, you probably have a few Chinese friends. What is the national pastime of Chinese business people? If you answered tax evasion, corruption and money laundering, then you’ve tried to do business in China. When a handful of businessmen merged these two pastimes, they made a fortune by building casinos in Macao. Now, the Chinese government is cracking down on Macau, but cultures don’t change—they find new outlets. Is Bitcoin the next combination of these pastimes?" Source : http://www.valuewalk.com/2016/05/chinese-dominate-bitcoin-trading/

My point is, Bitcoin <The technology> was not designed for tax evasion or capital flight, but people use it in different ways. They will in the end, have to explain to their local tax agencies, where they get the money and where that money is going. ^hmmmmm^

[Darmo Gandoel]

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 certainly the government will think how to profit when the whole community began using bitcoin, but you know that decentralized bitcoin so I think the government will not be able to give taxes to the bitcoin because of decentralization,

They could definitely tax Bitcoin through records provided from online exchanges, and thus the only way you'd be able to avoid a lot of these issues would be to exchange physically, into cash, effectively avoiding a "normal" exchange and thus avoiding the records the government can use. Or the government may opt to introduce subscription-based programs for public services to compensate for unenforceable taxes.

I never think if the government is wanna for taxing bitcoin, but seriously I just wanna for waiting for the systemic structure of the government about the system for taxing bitcoin, and especially bitcoiners is always having more than 1 wallet and how the government's way for passing it?

maybe government will just count the amount of the money that will we withdraw into our bank account, and for bitcoin itself, i think there are no tax we should pay except the fee of sending bitcoin.

If we pay tax for bitcoin, I thing this is a good news because government accept bitcoin and make bitcoin is legal alternative investment.

[Supercrypt]

I thought that was very odd when you receive a tax when earning from bitcoin, how to calculate the property tax using bitcoin? whereas very anonymous bitcoin

Why calculate property tax? If you earn bitcoins for providing a service, it is income?
It is very easy to value the bitcoins you receive.

As per my understanding, bitcoin will not incur any income tax as no one will be knowing how much bitcoin will be receiving for a service. So, until we declare how many bitcoins we will be holding or until we are cashing out bitcoins, we need not to worry about paying tax for bitcoin.

Only when we are ready to spend bitcoin, I believe we need to pay tax for the amount we are spending. When we are saving bitcoin for a retirement life, we never need to worry about pay tax as many countries do not have tax system for senior citizens.

[eternalgloom]

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?

And I don't think is the government will regulate and implement taxing bitcoins. Because they are not able to control it and every transaction there is already miners fee and we, bitcoin users are already treating those fee already as the tax that are automatically deducted everytime we are transacting or sending bitcoins.

What the heck are you talking about? Mining fees have nothing to do with actual taxes. It's just a fee for the miners, so they can prioritize transactions that have higher fees, in the sense that those get included in the next block faster.

And that Bitcoin can survive on fees only after the last block reward is issued.

Governments can and will tax you if you trade Bitcoin for fiat, most countries just treat it as another asset. Bitcoin is indeed fairly anonymous, but there are companies that can track transactions, plus every transaction is and stays recorded.


Stop spreading this kind of nonsense.

[TastyChillySauce00]

If we pay tax for bitcoin, I thing this is a good news because government accept bitcoin and make bitcoin is legal alternative investment.

that's the thing and also there will be probably a regulation for bitcoin users that could potentially give us a benefits such as insurance or anything else because bitcoin was legalized,if we got these,there's nothing wrong to pay taxes,it's for the sake of our safety

[UnknownEye]

And I don't think is the government will regulate and implement taxing bitcoins. Because they are not able to control it and every transaction there is already miners fee and we, bitcoin users are already treating those fee already as the tax that are automatically deducted everytime we are transacting or sending bitcoins.

Ya just like you said,we already pay the miner fee,so why we need to pay tax for the government ? And one more thing,this is the one solid reason why government not like bitcoin become daily payment between seller and buyer.This is because government cannot take any fee or tax from the transaction with bitcoin.

[1Referee]

If we pay tax for bitcoin, I thing this is a good news because government accept bitcoin and make bitcoin is legal alternative investment.

People having to pax tax over their Bitcoins doesn't mean that the governments accept Bitcoin in any form or shape. They don't care what you do with it. You have Bitcoins? You must pay tax, that's all they care about. Incoming money.

[Caladonian]

And I don't think is the government will regulate and implement taxing bitcoins. Because they are not able to control it and every transaction there is already miners fee and we, bitcoin users are already treating those fee already as the tax that are automatically deducted everytime we are transacting or sending bitcoins.

Ya just like you said,we already pay the miner fee,so why we need to pay tax for the government ? And one more thing,this is the one solid reason why government not like bitcoin become daily payment between seller and buyer.This is because government cannot take any fee or tax from the transaction with bitcoin.

which we enjoyed as of this moment not having taxes for the transaction is so cool but if establishment will deal with their business i guess they need to pay taxes its the government right and im not against it but the btc transaction should not be change and not be taxable.

[mbuk81]

if the uk get  it way it would tax bitcoins and the people buy selling them but at the moment there cant and here is the
uk government  brief 2014 on the subject

 https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

so lets hope that there cant and don't start but I guess most of places in the world might have the same idea.

[Bugor2]

the government has no right to tax that is not provided by their laws. Cryptocurrency has an indefinite status in the state. It is therefore not subject to tax

[deisik]

the government has no right to tax that is not provided by their laws. Cryptocurrency has an indefinite status in the state. It is therefore not subject to tax

Which state do you refer to?

For example, in the US Bitcoin has been classified as "a convertible decentralized virtual currency" in 2013, which is considered as property and should be taxed as such. In the EU it is also classified as a decentralized virtual currency, though it is exempt from taxes because of its similarity with cash, i.e. it is considered as a means of payment (in other words, money). In China, it seems to be thought of as a so called Civil Rights Object (something like a property right), and it is legal for private use and ownership