You can't avoid taxes by investing in bitcoin

[dihari]

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.

[Dorky]

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.

I believe that applies only when you buy and sell bitcoin at an exchange, where the exchange has all your personal details and accounts.

If you just hold your bitcoin outside the exchanges, no government will be able to tax you because they won't know how much you have.

[Herbert2020]

well this is not new! i am not from US but this thing with taxes and bitcoin has been around from 2014 when IRS officially released their statement towards bitcoin and gave the guideline so that taxpayers can fill the appropriate forms to pay their taxes while investing in bitcoin.

I believe that applies only when you buy and sell bitcoin at an exchange, where the exchange has all your personal details and accounts.
If you just hold your bitcoin outside the exchanges, no government will be able to tax you because they won't know how much you have.

i think that can still be considered as tax evasion. you can ask @BurtW about it!

[Dorky]

well this is not new! i am not from US but this thing with taxes and bitcoin has been around from 2014 when IRS officially released their statement towards bitcoin and gave the guideline so that taxpayers can fill the appropriate forms to pay their taxes while investing in bitcoin.

Have you tried localbitcoins.com? It's the best P2P market ever that I know of.

The US is a country in very very bad shape.
Sometimes we can see even some 3rd world Asian countries are way better off than the US.

[QuestionAuthority]

The only people that can avoid taxes are the miners. Governments have no way of finding out how many coins you mined. As long as you don't exchange them into fiat or buy high dollar items like a new Lamborghini they will never know. There are still a few exchanges that don't ask for AML/KYC info. It is possible to exchange for fiat but you need to be careful about it. One way is BTCe to PerfectMoney account with SMS Authentication to a burn phone, PerfectMoney to online gold dealer, mail gold to a mail drop remailer service anywhere in the world. Sell gold at a local brick-n-mortar dealer in under $2k individual sales. However, the amount of extra expense to do this in fees and time involved is nearly as much as just paying your taxes. You might be better off just going that route unless you have another reason to not let anyone (including the government) know how much money you have.

[xuan87]

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

[NUFCrichard]

Well the title is just wrong!

Here in Germany, if you buy and hold for 1 year, then you can sell without paying tax. Thems the rules, so you can 100% avoid paying taxes by investing in Bitcoin!

I bought mine in 2014, so can happily sell whenever I want and not worry about taxes

[Amph]

actually you can with mining , they won't be able to find your income if you keep it in bitcoin, also IRS isn't in all country, don't pretend that what happen in USA happen everywhere

but it's true that you need to pay taxes if you ump your bitcoin fiat, it's better to leave them in bitcoin and try to use it as a currency

[KennyR]

well this is not new! i am not from US but this thing with taxes and bitcoin has been around from 2014 when IRS officially released their statement towards bitcoin and gave the guideline so that taxpayers can fill the appropriate forms to pay their taxes while investing in bitcoin.

Have you tried localbitcoins.com? It's the best P2P market ever that I know of.

The US is a country in very very bad shape.
Sometimes we can see even some 3rd world Asian countries are way better off than the US.

That's true and truly tax can be avoided through bitcoin usage. Though its been considered as a taxable asset on few countries those are not much effective. As quoted localbitcoins are good for exchanging need as well it comes under licenses category of exchanges.

[phr0stbyt3]

I'm totally not aware what are the laws in your country or how much tax they charge but for now in my country people are barely aware of bitcoin , so i don't see that any tax will be charged from me in the coming years.

[housebtc]

You pay tax either directly or indirectly to government, I don't believe the talk of evading tax since almost everything you use is taxed by them. The exchange collect trading fee from you and pay the government their own cut.

[Xester]

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.

Have you heard of value added tax well the companies area placing those kind of taxes and charged it to the products you are buying. In this regard even bitcoin is not free from such taxes. The moment you convert your bitcoin into your local currency the tax was already deducted by the company from your withdrawals and it will be remitted to the government. Thus the government loves bitcoin since it is easy to tax it unlike fiat currency.

[ImHash]

You are supposed to pay your taxes on the money that you have earned using government's properties and protection, besides only once using a mixer no one will be able to link you to any bitcoins unless you try to exchange them in regulated services.

[pooya87]

bitcoin doesn't give you any magical power. if you can or can not avoid taxes while investing in any other thing or even evade taxes on your business the the same thing is true about bitcoin too.
stop wanting something out of the ordinary from bitcoin. bitcoin is money too but with all its transactions public

[carlfebz2]

It does really depend on the situation on when bitcoin can be taxed not directly but on the services on which being used.Yes they can be taxed but most of your money transacted without any party involved then its completely tax free inspite of the tx fee. Thats all.

[ibuddy122505]

Bitcoin is the decentralized digital money. It's really difficult to find out how much you have money in bitcoin, you may hold it or do another job. Normally their might be created a chance for hiding income from the tax man. Unlike traditional currencies and some policy, government failed to control and that's enough, we'll be able to keep away from taxes by investing in bitcoin or what we do in the marketplace.

[Distinctin]

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.

They recognize bitcoin that means they can make good money with the people using. Actually, it's hard to hide from the government since they all ahve the resources and they are powerful enough, tax due should be paid and they are after of it since it is the lifeblood of the country.

[Chikito]

Bitcoin is the decentralized digital money. It's really difficult to find out how much you have money in bitcoin, you may hold it or do another job. Normally their might be created a chance for hiding income from the tax man. Unlike traditional currencies and some policy, government failed to control and that's enough, we'll be able to keep away from taxes by investing in bitcoin or what we do in the marketplace.

I do not agree with you, when you take a bitcoin a high price for melting in your pocket, then there will be questions on the government side, it was also indictment embezzlement tax and money laundering will be hovering to you, on the total amount of wealth you have. very difficult if you do not compromise or bribe state officials .

[mobnepal]

You can't save on taxes when buying/selling bitcoin using local trading platforms. But you can save taxes with bitcoin on;
1. Trade bitcoin on localbitcoins.com like p2p trading platforms or in platforms where verification is not mandatory.
2. You don't have to pay taxes on bitcoin transactions like when paying someone aboard or within your country.
3. You can store millions of $ worth bitcoin without getting noticed by others, buy bitcoin from local traders not from local trading platforms.

[ekoice]

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.

You are right.If the governments say that they would tax bitcoin income,it means they are indirectly recognizing bitcoin as legal.That would be more helpful for bitcoin progress.Bitcoin users can buy bitcoins without any fear of ban in the future.