You can't avoid taxes by investing in bitcoin

[Gens09]

actually this is one of the reason why people use bitcoin because of the bitcoin animosity the bitcoin don't pay taxes .,
But even if it don't pay taxes you should be careful in the transaction fees and or the exchange rate..
Bitcoin is popular now days so definitely recommend using bitcoin and earning bitcoin for a good profit..

[iamTom123]

If the government want taxed us then it's mean the government need to admit the bitcoin existence and make rules about it, in my country there is still no fixed rules about it yet, but in the future government will try to taxed us, and we can't evade taxed with bitcoin anymore

Any government is so willing to tax anyone as long as there is an income earned whether you earn it from a recognized legal asset or not. I think I read somewhere that government can file a tax evasion case even if you are involved in illegal drugs because you earned some money out of that but it does not mean that the government is recognizing illegal drug trafficking to be a business worth pursuing. However, the trend right is for government to recognize Bitcoin as an asset so that if you sell your Bitcoin and you gain profits the government can then charge you tax and can file tax evasion case if you fail to declare the transaction. Of course, right now we can still evade because there are many creative ways to do so.

[RoommateAgreement]

actually this is one of the reason why people use bitcoin because of the bitcoin animosity the bitcoin don't pay taxes .,
But even if it don't pay taxes you should be careful in the transaction fees and or the exchange rate..
Bitcoin is popular now days so definitely recommend using bitcoin and earning bitcoin for a good profit..

well then that is a false assumption that people who are in bitcoin because of what you said, are making.
bitcoin is neither anonymous nor free of tax.
the anonymity part is obvious, you can even google about it or even read the bitcoin.org page to see it is not.

and about taxes, there may be countries which has not yet decided but in most places you have to pay taxes when using bitcoin.

[Amph]

I think as long as you don't exchange them into fiat ,you can't to pay taxes,but if you have to exchange them into fiat,then you have to pay taxes because the gov know your money!

this depend it's controversial, some government may track your bitcoin address to see if you are going to use them to purchase soemthing and avoid paying taxes

they can do this if you use some known exchange which have link with are controlled by your government, but anyway i doubt you can live 100% on bitcoin, and try this way to avoid taxes, not feasible for now

[DoublerHunter]

I think as long as you don't exchange them into fiat ,you can't to pay taxes,but if you have to exchange them into fiat,then you have to pay taxes because the gov know your money!

this depend it's controversial, some government may track you bitcoin address to see if you are going to use them to purchase soemthing and avoid paying taxes

they can do this if you use some known exchange which have link with are controlled by your government, but anyway i doubt you can live 100% on bitcoin, and try this way to avoid taxes, not feasible for now

I think government does not have any rights for us bitcoin users to pay their taxes just because we are doing or buying some stuffs online with bitcoin, as long as it is legal then there is nothing to worry about, buy the things that you want online and don't worry for the taxes because bitcoin is tax free and it is decentralized so the government will not touch your bitcoin money.

[iram3130]

I think as long as you don't exchange them into fiat ,you can't to pay taxes,but if you have to exchange them into fiat,then you have to pay taxes because the gov know your money!

this depend it's controversial, some government may track you bitcoin address to see if you are going to use them to purchase soemthing and avoid paying taxes

they can do this if you use some known exchange which have link with are controlled by your government, but anyway i doubt you can live 100% on bitcoin, and try this way to avoid taxes, not feasible for now

If you are holding bitcoins for future savings and don't trade or exchange everyday or frequently then I guess you can evade the taxes because the government's may not know how much bitcoins you have.
Also if you exchange them with your local dealer or friends then the taxes can be evaded. It's not a good thing to evade the taxes but there are some people who can't afford to pay them.
Most if the people are here because they know that they can evade taxes really with bitcoins.

[Casabrandy]

I think as long as you don't exchange them into fiat ,you can't to pay taxes,but if you have to exchange them into fiat,then you have to pay taxes because the gov know your money!

this depend it's controversial, some government may track you bitcoin address to see if you are going to use them to purchase soemthing and avoid paying taxes

they can do this if you use some known exchange which have link with are controlled by your government, but anyway i doubt you can live 100% on bitcoin, and try this way to avoid taxes, not feasible for now

I think government does not have any rights for us bitcoin users to pay their taxes just because we are doing or buying some stuffs online with bitcoin, as long as it is legal then there is nothing to worry about, buy the things that you want online and don't worry for the taxes because bitcoin is tax free and it is decentralized so the government will not touch your bitcoin money.

As of now ,in our country we don't have any taxes on bitcoin transaction, so there is no problem yet. It will be hard to government  to control or monitored taxes on bitcoin so why bother put another work for their employees,maybe it will only happen when there are in built structures like bank or atm machine that's the only time they will put tax on it.

[soul-impact]

The way you say it is a form of money laundering, it is an illegal act, you can be legally liable for such conduct. Bitcoin is a free virtual currency that is almost unmanaged, with only a handful of countries legalizing and managing it, so it is easily exploited for money laundering. And I think this is possible, so many people use it to evade taxes.

[n2004al]

If you think investing in bitcoin or a similar “crypto-currency” may be a good method for hiding income from the tax man, you’d better think again.
http://nypost.com/2017/04/08/no-you-cant-avoid-taxes-by-investing-in-bitcoin/

I am smelling something good here with the news. If the government declared about how peoples can't avoid the taxes by investing in bitcoin, it means directly or indirectly government said that they recognize the existence of bitcoin and how it can be profitable to invest.

That depends from the country. No all the people who love, act or hodl bitcoin are united states citizens. In my country for example dhe word bitcoin is heard only two or three times at the media. And exist absolute silence from the authorities which need to regulate it. So you can do what you want because everything seems to be as in far west or wild wild west.

[HongKong]

Investing in Bitcoin publicly is up to the person and the third-party Bitcoin provider that wants the information to be viewed by the IRS or even sold to them. This type of situation doesn't really matter because the third-party owner could do pretty much whatever he or she wants within their own Business. The person that is purchasing Bitcoin from the third-party has the option to purchase from the third-party or from people that are off those major Bitcoin Exchanges. LocalBitcoins is one of the websites that allow people to stay far from the IRS.

[whizter]

actually this is one of the reason why people use bitcoin because of the bitcoin animosity the bitcoin don't pay taxes .,
But even if it don't pay taxes you should be careful in the transaction fees and or the exchange rate..
Bitcoin is popular now days so definitely recommend using bitcoin and earning bitcoin for a good profit..

i think people will even use bitcoin if there is tax on it. i do not think that people are using it because there is no tax on bitcoin to me i think people are using it because there are so many other advantages of bitcoin .

[MMA]

actually this is one of the reason why people use bitcoin because of the bitcoin animosity the bitcoin don't pay taxes .,
But even if it don't pay taxes you should be careful in the transaction fees and or the exchange rate..
Bitcoin is popular now days so definitely recommend using bitcoin and earning bitcoin for a good profit..

i think people will even use bitcoin if there is tax on it. i do not think that people are using it because there is no tax on bitcoin to me i think people are using it because there are so many other advantages of bitcoin .

i think it will be more better if government will put tax on bitcoin because the government have to declare bitcoin as legal currency before putting tax on bitcoin, as they cannot impose tax on illegal items.

[megynacuna]

If governments all over the world are able to censor every Bitcoin transactions to enforce a tax on it, then it's all the better for us because that will make them accept Bitcoin and approve its usage but I doubt if they can as Bitcoin is still decentralized but until it is centralized I don't see how they are going to be able to tax us.

[richardsNY]

If governments all over the world are able to censor every Bitcoin transactions to enforce a tax on it, then it's all the better for us because that will make them accept Bitcoin and approve its usage but I doubt if they can as Bitcoin is still decentralized but until it is centralized I don't see how they are going to be able to tax us.

If the government manages to have an important saying in Bitcoin, even to the extent of forcing through certain measures that will allow them to charge tax directly or indirectly, people will simply look for an alternative coin. But I am glad that there is no such a possibility as it is nothing more than a fantasy. Bitcoin is, and will remain a safe haven for people looking to avoid the banking and governmental system. Nothing is going to change that.

[aardvark15]

If you think investing in bitcoin or a similar “crypto-currency” may be a good method for hiding income from the tax man, you’d better think again.
http://nypost.com/2017/04/08/no-you-cant-avoid-taxes-by-investing-in-bitcoin/

I am smelling something good here with the news. If the government declared about how peoples can't avoid the taxes by investing in bitcoin, it means directly or indirectly government said that they recognize the existence of bitcoin and how it can be profitable to invest.

That's a good point. Another thing that makes me think that the US government recognizes Bitcoin as legitimate is that after the government seized the Silk Road Bitcoins, they auctioned them off to the public. They can't really auction something off and then declare it to be illegal.

[Qartada]

If you think investing in bitcoin or a similar “crypto-currency” may be a good method for hiding income from the tax man, you’d better think again.
http://nypost.com/2017/04/08/no-you-cant-avoid-taxes-by-investing-in-bitcoin/

I am smelling something good here with the news. If the government declared about how peoples can't avoid the taxes by investing in bitcoin, it means directly or indirectly government said that they recognize the existence of bitcoin and how it can be profitable to invest.

That's a good point. Another thing that makes me think that the US government recognizes Bitcoin as legitimate is that after the government seized the Silk Road Bitcoins, they auctioned them off to the public. They can't really auction something off and then declare it to be illegal.

Silk Road coins are different though, since they were used in illegal practices.  Equally, using a dollar to buy a knife and stab someone is going to be viewed as illegal by the US, but the money would still be in circulation.

It's not so easy to track Bitcoin transactions, though.  For the US government it would be a classic kind of police work, they'd have to shove a lot of clues together to figure it out for every major transaction and it really wouldn't be worth it.

[lOvE mE forEvEr]

Tax is a serious problem, my country is being tidied up the tax system so that all assets can be tracked. I will never save a large amount of money to put at risk due to loss and bitcoin never guarantee save from hacker.

[CraigWrightBTC]

I made investments into bitcoin (with trading altcoins) not for avoid taxes
because pay taxes on the countries is responsibility all of people in one countries,
also bitcoin is not for place for avoid taxes and for other illegal activity with bitcoin.

[Amph]

I think as long as you don't exchange them into fiat ,you can't to pay taxes,but if you have to exchange them into fiat,then you have to pay taxes because the gov know your money!

this depend it's controversial, some government may track you bitcoin address to see if you are going to use them to purchase soemthing and avoid paying taxes

they can do this if you use some known exchange which have link with are controlled by your government, but anyway i doubt you can live 100% on bitcoin, and try this way to avoid taxes, not feasible for now

If you are holding bitcoins for future savings and don't trade or exchange everyday or frequently then I guess you can evade the taxes because the government's may not know how much bitcoins you have.
Also if you exchange them with your local dealer or friends then the taxes can be evaded. It's not a good thing to evade the taxes but there are some people who can't afford to pay them.
Most if the people are here because they know that they can evade taxes really with bitcoins.

usually you can always afford to pay taxes, because tax are made for those people that earn a lot, if you have a very minimum income epr year, you are exempt from tax, at least it's how it work in some country

in fact poor people have to pay minimum tax if not zero tax anyway, position of bitcoin is not very clear for now, in some country, some of them will simply ignore that it exist and will not ask you anything, at least you are not doing illegal activity...

[slaman29]

I do not believe exchanges are proper intermediary for merchants to accept and process bitcoin transactions.

1. What if the merchants sell the bitcoins right away? They will be selling it at the exchanges.
2. If the buyer that spends bitcoin on the merchants do not, at the same time, or shortly thereafter, buy the same amount of bitcoin at the exchanges, then there will be a very strong downward force on bitcoin price as lots of merchants will be selling their bitcoins right away for fiat, thus supply overwhelming demand --> lower/falling price.
3. Bitcoins bought and sold at the exchanges are DIFFERENT from bitcoins spent on merchants, as bitcoins traded at exchanges come with leverage and thus most of them are phantom bitcoins.
4. Bitcoins spent on the merchants will not be those acquired by withdrawing from the exchanges, but acquired through p2p market like localbitcoins.
5. If all supply of bitcoins acquired from localbitcoins are spent on the merchants, which subsequently are sold at the exchanges, then the actual supply of bitcoin will be extremely distorted.
6. As bitcoins traded at exchanges cannot be withdrawn en masse from the exchanges (because most of them are phantom, fake), thus the thesis that exchanges are there to serve the merchants accepting payment in bitcoin will be extremely short-lived, not viable, impractical, and will be a great loss to everyone that participate in such relationship.

Thus if bitcoin is to be successfully accepted by merchants en masse, there needs to be a sort of "bank" that readily accepts bitcoin for fiat.

Very good points but is that not the exact same queries we can pose to normal banks, normal merchants and normal exchangers, all licence to do the same thing for normal money? Forex is still biggest market if looking at volume but majority of buy and sell is on margin meaning nobody actually exchanging currency, just promises to buy or sell:)