Imposing tax on bitcoin

[Ewinsane]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

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[Gotottack]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

They don't impose tax on transacting bitcoins but the government can impose a tax on how much money you earned from selling your bitcoins. So for example you bought it at the price today and you sold it at 100% more than what it is today, then you must pay for how much you earned from that. That is the concept of income tax.

[KenR]

They don't impose tax on transacting bitcoins but the government can impose a tax on how much money you earned from selling your bitcoins. So for example you bought it at the price today and you sold it at 100% more than what it is today, then you must pay for how much you earned from that. That is the concept of income tax.

It isn't!I'm afraid you don't know how income-tax works.Taxing bitcoins wouldn't just be about adding taxes on buying and selling or trading it through exchanges.One would be taxed for every commodity he ever buys with bitcoins along with bitcoins.Example,buying a T-shirt with bitcoins would need a service tax to be paid for the Government,like your real money.

[jondeen707]

They don't impose tax on transacting bitcoins but the government can impose a tax on how much money you earned from selling your bitcoins. So for example you bought it at the price today and you sold it at 100% more than what it is today, then you must pay for how much you earned from that. That is the concept of income tax.

It isn't!I'm afraid you don't know how income-tax works.Taxing bitcoins wouldn't just be about adding taxes on buying and selling or trading it through exchanges.One would be taxed for every commodity he ever buys with bitcoins along with bitcoins.Example,buying a T-shirt with bitcoins would need a service tax to be paid for the Government,like your real money.

Such taxes could only be levied on purchases of physical goods, however this is also doubtful as with bitcoin there's no central authority to enforce the taxation. So, in other words, you can only collect taxes when fiat goes in or out of bitcoin.

[Kevin77]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

Yes actually the transactions are anonymous and we can make even 1 million addresses and use a new one each time we make a transaction and hence even the best of detectives cannot track those transactions.

The government can never track and tax such transactions and that is what makes bitcoins unique and honestly if I was taxed for using bitcoins I would stop using it.

[StarofBTC]

If they will impose tax to bitcoin. I guess they should be legalize it before implementing imposition of tax. I think this will be weaken the bitcoin because the government are going to manipulate it. Bitcoin.is tax free and should not be imposed tax by government. This is the nature of bitcoin. It should be stay that way.

Actually people are confused, income tax never means that you will be charged for the transactions you make rather income tax means that you pay the government some fees for earning money. So its like you are selling online goods for bitcoins then everything is fine but as soon as you convert them to fiat you pay fees to them.

[rickadone]

They don't impose tax on transacting bitcoins but the government can impose a tax on how much money you earned from selling your bitcoins. So for example you bought it at the price today and you sold it at 100% more than what it is today, then you must pay for how much you earned from that. That is the concept of income tax.

It isn't!I'm afraid you don't know how income-tax works.Taxing bitcoins wouldn't just be about adding taxes on buying and selling or trading it through exchanges.One would be taxed for every commodity he ever buys with bitcoins along with bitcoins.Example,buying a T-shirt with bitcoins would need a service tax to be paid for the Government,like your real money.

Yeah you are right but the government has no tools to find out who is doing what business online and hence they cannot really tax someone and the big sellers would themselves pay tax on huge sales.
I think using bitcoins can never be taxed but obviously converting bitcoin to fiat in huge quantities can be taxed.

[Invulner]

What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?

It is quite useless in my opinion to even try to tax bitcoin, because it would be impossible to measure the capital gains on the coins because it is impossible to track records of who bought how much coins at what time and sold at what time.

And nobody is going to follow any reporting regulations because they simply can't be fucked.

[Loepuenkyou]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

i think bitcoin posible imposing pay tax, but early must regulated
without regulated is imposible
but very dificult to imposing tax, maybe only exchanger can imposing tax, because can calclulated in transaction

[coin-investor]

What if the Internal Revenue service of the US decided to tax bitcoin transactions, what would be the possible effects on its price and the bitcoin community. Will the other governments follow?

Can they really do that and will it benefit the government,US government will looked desperate if they are going to do that,they can impose on merchants inside their borders but not outside of it,and they will need a lot of resources to do that,they are still ok without taxing bitcoin..

[FaucetRank.com]

In many countries government already impose tax like service tax when you buy/sell Bitcoin from Bitcoin exchange so far it only imposed when you buy/sell it from Bitcoin exchange. But it will different thing if government impose tax on every transaction .
Will it be easy or posible for government to impose tax on Bitcoin transaction?

[lionheart78]

In many countries government already impose tax like service tax when you buy/sell Bitcoin from Bitcoin exchange so far it only imposed when you buy/sell it from Bitcoin exchange. But it will different thing if government impose tax on every transaction .
Will it be easy or posible for government to impose tax on Bitcoin transaction?

I think it will be easy for the government to impose tax. All they can do is communicate to exchange and give them law on how they will tax bitcoin that is been exchanged to fiat money and vice versa.  This way people have no choice.  It is a mandatory tax collection LOL.

[crairezx20]

In many countries government already impose tax like service tax when you buy/sell Bitcoin from Bitcoin exchange so far it only imposed when you buy/sell it from Bitcoin exchange. But it will different thing if government impose tax on every transaction .
Will it be easy or posible for government to impose tax on Bitcoin transaction?

For local exchange they are already paying tax those only for the owner but for who are buyers of bitcoin i think we are not paying in tax.
Except for rate of any local exchange because they have different rates for every exchange site or local exchange like here we have 3 different local exchange which is 3 different rates..  those owners only are paying for tax and they are just increase the rate depends if what they want..

[GregH37]

Anything can possible in this cruel world because bitcoin is not governed and ruled by the government there many individuals who are mining and buying bitcoin with low transaction fees.

Don't worry brother the world is cruel but the bitcoins are designed in such a way that putting any sort of taxes on doing any amount of transactions via bitcoins is nearly impossible.

I think that if you sell your bitcoins for cash currency and you hide it from government then you actually have real money with bitcoins without paying taxes, another feature possible only with bitcoins. Because with paypal and al they ask verification.

[praboso96]

Anything can possible in this cruel world because bitcoin is not governed and ruled by the government there many individuals who are mining and buying bitcoin with low transaction fees.

Don't worry brother the world is cruel but the bitcoins are designed in such a way that putting any sort of taxes on doing any amount of transactions via bitcoins is nearly impossible.

I think that if you sell your bitcoins for cash currency and you hide it from government then you actually have real money with bitcoins without paying taxes, another feature possible only with bitcoins. Because with paypal and al they ask verification.

Bitcoin done very wisely, and it can not be taxed. I think that all the government's attempts to do so are doomed to failure. Bitcoin is being protected from government interference

[South Park]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

They cannot impose a thing unless they control the network, if they were able to do it then they could impose any kind of rules and regulations they may like.

[nemgun]

i think its impossible to imposing tax on bitcoin currently first of all they need to adopt the bitcoin for their government and adopt the bitcoin in their banks then they can be imposing the tax on bitcoin.

They cannot impose a thing unless they control the network, if they were able to do it then they could impose any kind of rules and regulations they may like.

I already found companies who asks for a tax on bitcoin payments, maybe it is a way to get more money from customers, and maybe it is due to taxation, i think it was an american company.
Remember that a lot of exchanges based in the US are regulated by the US government, doesn't it means that they are actually taxed ?
I personally don't think so.

[icecube45]

If the government imposing tax on bitcoin was sure to happen is bitcoin transaction costs will be greater, and there will probably be routine costs to be incurred. Imposing tax on bitcoin I sure do not apply in all states because each state has different policies. I believe imposing tax on bitcoin will be imposed for countries that accept bitcoin.

[TastyChillySauce00]

If the government imposing tax on bitcoin was sure to happen is bitcoin transaction costs will be greater, and there will probably be routine costs to be incurred. Imposing tax on bitcoin I sure do not apply in all states because each state has different policies. I believe imposing tax on bitcoin will be imposed for countries that accept bitcoin.

The government can't impose the tax into the blockchain . Hence the transaction costs (or you're more likely referring to miner's fee ) aren't going to be affected and will remain the same. But, if the government are imposing the taxation onto merchant whose payment options are also accepting bitcoin then it would affect the bills you're going to pay because it will merged with the tax

[nemgun]

If the government imposing tax on bitcoin was sure to happen is bitcoin transaction costs will be greater, and there will probably be routine costs to be incurred. Imposing tax on bitcoin I sure do not apply in all states because each state has different policies. I believe imposing tax on bitcoin will be imposed for countries that accept bitcoin.

The government can't impose the tax into the blockchain . Hence the transaction costs (or you're more likely referring to miner's fee ) aren't going to be affected and will remain the same. But, if the government are imposing the taxation onto merchant whose payment options are also accepting bitcoin then it would affect the bills you're going to pay because it will merged with the tax

The only possible option for Bitcoin taxation is Merchant Taxation, on purshase. They can't tax the blockchain as it is used worldwide, unless the UN passes a motion regarding cryptocurrencies. Even in this case, the blockchain can't be taxed as it is decentralised, the merchants are not decentralised, so they are the only one to be taxed.