How to TAX Bitcoin. An easy way !

[Hydrogen]

If your goal is to improve society and civilization.

Encouraging the state to cut taxes, spend more efficiently and streamline operations to cut spending are in your best interest.

People shouldn't support raising taxes at every opportunity unless they want to increase suffering, pain and agony in the world.

[David19]

If your goal is to improve society and civilization.

Encouraging the state to cut taxes, spend more efficiently and streamline operations to cut spending are in your best interest.

People shouldn't support raising taxes at every opportunity unless they want to increase suffering, pain and agony in the world.

Of course, but when it comes to digital assets like Bitcoin countries will either ban it or tax it. So the best outcome for us Bitcoin supports is to let countries accept it as a currency and tax it appropriately

[Hydrogen]

Of course, but when it comes to digital assets like Bitcoin countries will either ban it or tax it. So the best outcome for us Bitcoin supports is to let countries accept it as a currency and tax it appropriately

Prior to 1913 when income taxes were legislated, united states economic growth was normally 10% per year.

After income taxes began to strangle the US economy growth stagnated until today we barely have 1% per year economic growth.

The best outcome is for people to realize taxes are poison. They kill economies, strangle job markets, restrict innovation and progress. They also decrease living standards and quality of life.

If bitcoin is ever taxed and regulated, its quality and value will decline significantly. Governments aren't structured nor incentivized to spend tax revenues effectively, fairly or efficiently. Socialism destroys wealth, standard of living and progress. The end.

[MFahad]

If the coding community really wanted to, I suppose we could implement some internal system.  The best I could imagine would be some manner of reverse reward system, more of a reverse staking system, based not on held balance, but volume.  Say on Dec 31, each wallet calculates a "tax" based on a percentage of the volume/overall balance throughout the past calendar year, then sends that "tax" amount to a known collection address.

[Lancusters]

If your goal is to improve society and civilization.

Encouraging the state to cut taxes, spend more efficiently and streamline operations to cut spending are in your best interest.

People shouldn't support raising taxes at every opportunity unless they want to increase suffering, pain and agony in the world.

You know examples when people support raising taxes? In my country there is even a law that forbids to make a referendum on the tax issues. I do support the idea that before to solve the issue of expanding the base of taxation is always considered to optimise existing revenues.

[KroFly]

I doubt that everyone will honestly report their addresses to the bitcoin-purses. They are anonymous and you can earn yourself and not share with the state.

[David19]

Of course, but when it comes to digital assets like Bitcoin countries will either ban it or tax it. So the best outcome for us Bitcoin supports is to let countries accept it as a currency and tax it appropriately

Prior to 1913 when income taxes were legislated, united states economic growth was normally 10% per year.

After income taxes began to strangle the US economy growth stagnated until today we barely have 1% per year economic growth.

The best outcome is for people to realize taxes are poison. They kill economies, strangle job markets, restrict innovation and progress. They also decrease living standards and quality of life.

If bitcoin is ever taxed and regulated, its quality and value will decline significantly. Governments aren't structured nor incentivized to spend tax revenues effectively, fairly or efficiently. Socialism destroys wealth, standard of living and progress. The end.

Well bitcoin can never be fully regulated, but when it comes to taxing it's already considered an asset and most countries require to pay income tax on it...

[leman24]

Of course, but when it comes to digital assets like Bitcoin countries will either ban it or tax it. So the best outcome for us Bitcoin supports is to let countries accept it as a currency and tax it appropriately

Prior to 1913 when income taxes were legislated, united states economic growth was normally 10% per year.

After income taxes began to strangle the US economy growth stagnated until today we barely have 1% per year economic growth.

The best outcome is for people to realize taxes are poison. They kill economies, strangle job markets, restrict innovation and progress. They also decrease living standards and quality of life.

If bitcoin is ever taxed and regulated, its quality and value will decline significantly. Governments aren't structured nor incentivized to spend tax revenues effectively, fairly or efficiently. Socialism destroys wealth, standard of living and progress. The end.

Well bitcoin can never be fully regulated, but when it comes to taxing it's already considered an asset and most countries require to pay income tax on it...

but in such countries as european for example. there is one bad tax named VAT, so if even you change one asset for another on commercial base, purchasing something, you have to pay VAT tax to government

[Noctis Connor]

When it come with tax the bitcoin wallet i use is free and develop here in my country it is based wallet that we can use to send coins to coins without fee and it is totally free when every time i withdraw bitcoin from bank or any remittances and this is how i love to use our wallet because some of the wallet now has big fees even you are going to send little amount,

[Gaaara]

When it come with tax the bitcoin wallet i use is free and develop here in my country it is based wallet that we can use to send coins to coins without fee and it is totally free when every time i withdraw bitcoin from bank or any remittances and this is how i love to use our wallet because some of the wallet now has big fees even you are going to send little amount,

Woah, that was interesting. What country you from? We almost have the same situation as we can also use our wallet in our country to withdraw as long as our valid ID is verified by the server, it is a online wallet though, but we cannot send coins without any fees, I mean that takes lots of money, how do they do that.

[itsallpc]

Hiding cash under your bed or gold bar also tax evasion which is illegal, if government really regulate and taxed bitcoin it is better just report and pay the tax, it is possible to hide bitcoin but when you want to change it to fiat or spend it the government will know about it

Yes,unless you keep your bitcoins with you,you are safe and government will not be able to know about your holdings.But when you convert it into cash,then you come under the radar o government and you are accountable for your bitcoin earnings.

[Qunenin]

If the coding community really wanted to, I suppose we could implement some internal system.  The best I could imagine would be some manner of reverse reward system, more of a reverse staking system, based not on held balance, but volume.  Say on Dec 31, each wallet calculates a "tax" based on a percentage of the volume/overall balance throughout the past calendar year, then sends that "tax" amount to a known collection address.

It would have to be chain wide, or we could just move coins around to avoid it.  It would be fair and the only two ways I can think to get around it would be off chain wallets(side tokens) or keeping a software wallet off-line for a long period of time and the chances are that whenever it came online it would throw the TX.

[2girls]

 
Taxes would have to be done at the sale level and that means that it will fall on the businesses.  Income through Bitcoin will have to fall to what a person is willing to report and what the IRS will track down.

[Taki]

But that your government recognizes bitcoin as a currency? I doubt it. Your income in bitcoins according to the law is not revenue. If you buy goods with bitcoin it does not fall under the tax base. If you exchange them for your currency, then taxes will have to pay.

Bitcoin or any other crypto currency is falling under the tax base, because of it's actually profit. I really don't know how the government is going on to out watch all this digital profit, bit I am sure they are creating their plans about it. Maybe something like local wallets where you will have to fill all your private information and banning other kinds of wallet. Don't know.

[DrGuns4Hands]

It is better to hide your money in your bitcoin wallet and pay bills with it at least you won't pay any taxes from your government right now many rich people in my country putting their money in bitcoin in order to evade taxes. in our country taxes is more than your salary if you will think of it lol.

[Monnt]

Taxes would have to be done at the sale level and that means that it will fall on the businesses.  Income through Bitcoin will have to fall to what a person is willing to report and what the IRS will track down.

There are countries where governments are into plan to impose taxes only for organisations and business like they will be removing tax structure from individual person's income. I believe with this kind of taxation structure, it will be possible to impose taxes on bitcoins. Still bitcoin is not from any central authority so that they will be reporting your holding and your address/wallet information. Hence only volunteer submission of how many bitcoin holding one person is having is the only way to tax which cannot be reliable all the times.

[darthmaul]

Bitcoin taxation might get harder in country like USA or Europe. For now 3rd world countries need not to worry about the bitcoin that they earn and spend as most of their government is busy in solving their own countries problems. Many countries don't even recognise bitcoin as currency and people in there do have lots of money stored in the form of bitcoins. They are already evading the tax and due to poor banking system nobody asks much questions from where the money came. Many of them have tax exemption for money won in games, bets etc and thus they can easily put forth reason that they earned it from such games and can easily surpass the tax. Anyway, if you have taxes on it the you should really pay it for better of you and your future. :-)

[cellard]

I have no idea how taxation works because I've never had any money. Now I just realized i've managed to stack a decent amount and mostly with signature campaigns along the years along some trading. I wonder I would explain the origin of the money to the taxmen. Do you just claim you got paid for posting in some internet forum in form of BTC? will they ask for addresses, accounts and more proof? It's weird.

I don't want to do anything illegal or avoid any taxes so I want to know how to properly do this whenever I sell.

I have considered contacting a professional on this matter but no one seems to know how bitcoin works..

[xIIImaL]

It is better to hide your money in your bitcoin wallet and pay bills with it at least you won't pay any taxes from your government right now many rich people in my country putting their money in bitcoin in order to evade taxes. in our country taxes is more than your salary if you will think of it lol.

Already they are high fees for the transaction, deposit fees in the localbitcoins. Simply stabbed the people who are earning little in bitcoin. They are trying push to out the people from bitcoin to altcoin. Now, speaking about taxation on bitcoin will give a bad move by the whales in bitcoin.

[bouren]

In my country, I have to fill a form every year for the tax department, including my year end bank statement and the salary bill.
Together with some major bills for insurance and healthcare, that's all they get.

So I can hide cash under the bed, or have an overseas account, or have some Gold bars, etc. The goverment has to thrust me quite a bit.
They can check some transfers, but if you like to hide it, you can do it.

So the actual way of getting the real numbers is quite bad.

In Bitcoin
If the Tax department makes it a rule by law, that you have to report every BTC address you own, or every wallet you own ...

All problems solved, because then the Department has also the addresses of the petrol station and the deli you spend money.
In no time the system knows which tax counts here and can claim the respective amount from both sides.

Sure it is still possible to hide Bitcoins, but then it is illegal.


...or did I miss something?

Yes, you missed a simple thing. When you hide your fiat money, it is illegal too.
So there is hardly any fact to mention bitcoin hiding as "illegal" and other money as "ok".
When government regulate bitcoin, it makes bitcoin equivalent to money and there is hardly any difference lies between two. So I don't understand why are you differentiating two.