Bitcoin vs Taxes

[stompix]

The good thing is that there is no taxes with bitcoin, no matter how much you earn. But the point to be noted is that in case if you convert your coins to Fiat through legal means, then govt can charge you taxes on the Fiat.  

While converting our bitcoins to fiat currency, we have to pay 2 tax amount. One for exchange site they will charge some amount to exchange our bitcoins to fiat. And next to that amount will deposit in our bank account. Here we have to pay income tax to our governament.

Those are not taxes.
Those are the fees of the service you're asking for.

The fee of the exchange and the fee of the bank.
You're going to pay income tax to your government only after you file for income tax from your trading.

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[hdclover]

bitcoin is not currency and it should not be taxed.

[kpcian]

I think when it will be legal then it taxes will be included here, I want to say about the benefit of the economy every government should impose the tax on every economic activity so Bitcoin is not out of these. so it doesn't matter if the tax is included in here. so it should take it easy...

[justdimin]

I think when it will be legal then it taxes will be included here, I want to say about the benefit of the economy every government should impose the tax on every economic activity so Bitcoin is not out of these. so it doesn't matter if the tax is included in here. so it should take it easy...

Yes, we need to be get ready to pay taxes for bitcoins as approving bitcoin as a legal currency/asset will be opening enormous opportunities to us hence to enjoy those things, we must be prepared to pay taxes also. But saving/holding bitcoins will not attract taxes for ever, hopefully.

[northstarh]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Of course, if your government accepts bitcoin, it means bitcoin becomes a legitimate currency, and the user has to pay taxes when using it. I do not like that, I like freedom when I use bitcoin.

[RodeoX]

Yes, we need to be get ready to pay taxes for bitcoins as approving bitcoin as a legal currency/asset will be opening enormous opportunities to us hence to enjoy those things, we must be prepared to pay taxes also. But saving/holding bitcoins will not attract taxes for ever, hopefully.

Of course, if your government accepts bitcoin, it means bitcoin becomes a legitimate currency, and the user has to pay taxes when using it. I do not like that, I like freedom when I use bitcoin.

Just to be clear, in the U.S. you absolutely owe tax on bitcoin gains. It has nothing at all to do with being a currency. You owe on ALL gains. If you find a diamond in your back yard you owe on that also. There is no free profit.

[ivanst776]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

I think this is really absurd, I believe there shouldn't be any taxes when one currency is exchanged for another, If on the other hand bitcoins is used to buy products and services then and only then should they become taxable. In my country i dont face that kind of situation.

Why should we mention taxes with bitcoin? There is no taxes on bitcoin because we know that bitcoin is decentralized which is helping people there is no authority on bitcoin. So how should we say that taxes with bitcoin ?

Government doesn't charge you but the banks do because they are kind of cheap people on the earth like we can say that cheap system toward bitcoin.

[ocid]

Bitcoin transactions can provide benefits like investments, but in my country the government or authorities have not been able to clarify Bitcoin's status. If the central bank clarifies the existence status of Bitcoin then the government can already apply the tax on the Bitcoin.

[deisik]

Yes, we need to be get ready to pay taxes for bitcoins as approving bitcoin as a legal currency/asset will be opening enormous opportunities to us hence to enjoy those things, we must be prepared to pay taxes also. But saving/holding bitcoins will not attract taxes for ever, hopefully.

Of course, if your government accepts bitcoin, it means bitcoin becomes a legitimate currency, and the user has to pay taxes when using it. I do not like that, I like freedom when I use bitcoin.

Just to be clear, in the U.S. you absolutely owe tax on bitcoin gains. It has nothing at all to do with being a currency. You owe on ALL gains. If you find a diamond in your back yard you owe on that also. There is no free profit.

You say it as if it were the right thing

Or as though you were proud of it. Are you really? If I'm not mistaken capital gains tax means that you have to pay the tax only if you sell something and only if you book profits at that (profits being defined as income earned minus expenses incurred). In this way, if you were lucky to find a diamond about the size of a horse head in your backyard or elsewhere, you don't owe any taxes on it. At least, not until you decide to sell it, right? Further, if you keep this diamond long enough (say, for a few years), you may also not have to pay this tax at all

[whaawh]

Bitcoin transactions can provide benefits like investments, but in my country the government or authorities have not been able to clarify Bitcoin's status. If the central bank clarifies the existence status of Bitcoin then the government can already apply the tax on the Bitcoin.

Generally speaking, I would not like to work legally, but people are always strangled with taxes. I actually agree to pay taxes, because thanks to them, the state lives. But I do not agree when taxes turn into state robbery. That's why I would not want Bitcoin to be legalized, because the state will be able to control my income.

[Kronos21]

I like bitcon because it gives people in the hands of the mechanism of influence on politicians and government. Now we have the opportunity to vote taxes. If I don't trust the government I earn on the Internet and do not give any penalties. Let them come up with conditions under which it will be profitable to work officially.

[Potato Chips]

Bitcoin transactions can provide benefits like investments, but in my country the government or authorities have not been able to clarify Bitcoin's status. If the central bank clarifies the existence status of Bitcoin then the government can already apply the tax on the Bitcoin.

Generally speaking, I would not like to work legally, but people are always strangled with taxes. I actually agree to pay taxes, because thanks to them, the state lives. But I do not agree when taxes turn into state robbery. That's why I would not want Bitcoin to be legalized, because the state will be able to control my income.

so you want to work illegally? lol. i think its better to stay away from illegal things, yes you are gaining something but if you got busted the loss will probably be greater than your

gains. as for taxing bitcoin don't worry they can't do that much as no one is controlling bitcoin, they can't access it. if they wan't to tax it that bad, they will probably target the

exchanges in other words, wallets with private keys you don't have any control. bottomline you get charge if you signed up on them.

[swetka]

Bitcoin transactions can provide benefits like investments, but in my country the government or authorities have not been able to clarify Bitcoin's status. If the central bank clarifies the existence status of Bitcoin then the government can already apply the tax on the Bitcoin.

Generally speaking, I would not like to work legally, but people are always strangled with taxes. I actually agree to pay taxes, because thanks to them, the state lives. But I do not agree when taxes turn into state robbery. That's why I would not want Bitcoin to be legalized, because the state will be able to control my income.

so you want to work illegally? lol. i think its better to stay away from illegal things, yes you are gaining something but if you got busted the loss will probably be greater than your

gains. as for taxing bitcoin don't worry they can't do that much as no one is controlling bitcoin, they can't access it. if they wan't to tax it that bad, they will probably target the

exchanges in other words, wallets with private keys you don't have any control. bottomline you get charge if you signed up on them.

How then to feel secure in their coins.

[cotton ball]

The best way to see bitcoin acceptable to the world is regulation, government regulations will have an impact on the tax sector, I think there is no problem with this because it is the best condition to be accepted in world economy. I do not think how much income they will cut but the most important is how many bitcoins are capable of generating change in modern world.

[Rahar02]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Yes, most people invest on bitcoin in order to get profits but there are some things that you have to pay as well such as bitcoin transaction fees and exchanges fees to withdraw. If an exchange has deposit fees, then it doesn't make sense, do not deposit at there.
If a country stated you have to pay tax if you buy bitcoin, what can you do to avoid that? Just pay it. Or looking for someone who wants to sell bitcoin, so you don't have to pay exchanges fees or tax.
Fortunately, in my country there is no such regulations, and all we have to pay is withdraw fiat currency on exchanges.

[CleverOracle]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Yes, most people invest on bitcoin in order to get profits but there are some things that you have to pay as well such as bitcoin transaction fees and exchanges fees to withdraw. If an exchange has deposit fees, then it doesn't make sense, do not deposit at there.
If a country stated you have to pay tax if you buy bitcoin, what can you do to avoid that? Just pay it. Or looking for someone who wants to sell bitcoin, so you don't have to pay exchanges fees or tax.
Fortunately, in my country there is no such regulations, and all we have to pay is withdraw fiat currency on exchanges.

Very interesting situation I would've never imagined that could be possible but since it is, I would suggest that people go to alternate cryptocurrencies such as Monero which is the XMR. The question is how are can you going to pay taxes when the government cannot find out who you are there are over 1000 versions of alternate cryptocurrencies search for the right one that works for your own purposes.

[pinkpanther03]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Sometimes I've been thinking about if bitcoin become legalize in other country is it good? because, if the government declare bitcoin as their legal currency, does this means it has tax? something like that,..but as long as bitcoin decentralized bitcoin can't have taxes in every transaction.

[olushakes]

bitcoin is not currency and it should not be taxed.

That would be your opinion but not from the point of view of government and moreso, its not only a currency that is being taxed other items includes property, services, documents among other variances. It now depends on the category each country wants to put earnings from bitcoin into and they will then tax accordingly and there is nothing anybody can do about it so far its within the purview of the law,

[deisik]

I've heared that in some countries people have to pay the income tax after buying fiat for their bitcoins. Anyone faced such problem? If yes then how you deal with it in your country?
At one point of view  bitcoin is an instrument for investment so ppl buy it willing to get income in their currency.
At the other point it is a currency and it might be used with a purpose of saving. In this case the tax would be stupid.

Sometimes I've been thinking about if bitcoin become legalize in other country is it good? because, if the government declare bitcoin as their legal currency, does this means it has tax? something like that,..but as long as bitcoin decentralized bitcoin can't have taxes in every transaction.

It is not clear what you mean by "legal currency"

If you mean making Bitcoin into legal tender (with which you can pay local taxes), that would make Bitcoin an official currency of that country. Obviously, it is rather strange to tax something with which you can pay taxes (I don't mean capital gains, of course). On the other hand, if you mean accepting Bitcoin as a foreign currency (sort of), then taxing it would obviously depend on specific jurisdiction since many governments follow different approaches in respect to taxing gains obtained via currency exchange operations

[Cult]

If one could declare it as normal income that would be great, tax rate is low, but bitcoin gains most likely qualify as capital gains, same as forex trading or stocks trading and tax rate is much higher.

Don't really know how someone would declare Bitcoin Cash, it can be qualified as dividends from bitcoin or even as a donation or gift.