Bitcoin vs Taxes

[sandrun]

My country to buy bitcoin is not taxable. But if you want to sell bitcoin .. I will be taxed. Maybe if you save your money in fiat form .. you will pay taxes on the bank or government. But if you keep bitcoin for a long time. You will avoid taxes .. and you will benefit from storing bitcoin. Your money will not be lost .. while the tax will spend your money in the future.

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[sukamasoto]

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.

Luckily my goverment still forbid bitcoin usage so I can use bitcoin without pay any tax
IMO, even if my goverment one day legalize bitcoin usage, they must not applied tax on bitcoin since bitcoin basically is not a currency but it's a virtual currency

[ScriptYoYo]

Yes, for profit from the sale of crypto currency, you need to pay tax, but in our country so far it has not been accepted and I manage to evade taxes. To avoid taxes it is also not good to sell coins, but to make purchases for them.

[Blamsud]

Yes, for profit from the sale of crypto currency, you need to pay tax, but in our country so far it has not been accepted and I manage to evade taxes. To avoid taxes it is also not good to sell coins, but to make purchases for them.

We can consider the taxes from the transaction fees if there is a company involved like in deposits and cashing out of our btc. I think it will be hard to put taxes in online transactions when there is no in built companies related.

[Koadharber]

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.

Luckily my goverment still forbid bitcoin usage so I can use bitcoin without pay any tax
IMO, even if my goverment one day legalize bitcoin usage, they must not applied tax on bitcoin since bitcoin basically is not a currency but it's a virtual currency

Government cant tax bitcoin directly but they can able to impose taxes on the service which do accepts bitcoin in short even if they would accept or adopt bitcoin they cant directly impose taxes to its users thats why other government do really have this kind of restriction when it comes on bitcoins adoption to their place. Its a decentralized thing and no one can able to control it.

[RodeoX]

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.
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In the U.S. that would be devastating. Capitol gains tax is generally 0-15% whereas income tax is likely about 30%. You would more than double your tax burden if you had to pay income tax on your coins. 

[Lieldoryn]

The Bible says that people must give 10% to God. I'm not a believer, but I think that this amount is time-tested. All that the government extorts taxes more than 10% of people will hide. And bitcoin is no exception. Tax evasion is a kind of protest of the people against robbery.

[Barbut]

Some countries have some still don't, that depends from country to country. I know about Australia they paid double taxes on bitcoin, now they don't cause the government nre measures. They wish to push that technology sector and to give it more space for developing. Sooner or later other countries will follow that, some counties will have strict laws about bitcoin, others will be more opened to bitcoin. There is no way to predict what will happen, we need to wait and see. Every country will be specific, and I think we will see many different decisions and laws in the future.

[seraph_the_wise]

yeah, varies from country to country. Likely counts as capital gains (tax) when converting the amount from crypto to fiat currency, but the question is then, how does the IRS ascertain the purchase price (likely self-reported  ) and what kind of proof is required, as this will determine the amount of tax. It gets even murkier on donations and pure crypto transactions (with no fiat conversion involved) - asset ownership transfer or donation tax? Even more complicated is what entity/entities gets to receive those taxes (country of citizenship, country of residence, node-based distribution). Personally I don't see it resolved unless an international regulatory framework is agreed on by most countries.

[Livnem-soul]

If you sell Bitcoin for Fiat, then you have to pay taxes.
While Bitcoin is a currency, it is considered a commodity and therefore by selling it you're 'making money'.
It's illegal if you don't pay taxes.

Taxes need to be paid in any case. You in everything are right. It would be desirable to add that it is better to pay, than to hide.

[deisik]

yeah, varies from country to country. Likely counts as capital gains (tax) when converting the amount from crypto to fiat currency, but the question is then, how does the IRS ascertain the purchase price (likely self-reported  ) and what kind of proof is required, as this will determine the amount of tax. It gets even murkier on donations and pure crypto transactions (with no fiat conversion involved) - asset ownership transfer or donation tax? Even more complicated is what entity/entities gets to receive those taxes (country of citizenship, country of residence, node-based distribution). Personally I don't see it resolved unless an international regulatory framework is agreed on by most countries

But that's even less likely

To be resolved in any definitive manner since every country seems to have their own, particular view on Bitcoin. In some countries (say, Japan) it is fully allowed just like any other currency (read Bitcoin is considered as just a foreign currency). In other countries (for example, Russia), there is no official regulation of Bitcoin whatsoever, and it continues to dwell in the so-called "twilight zone". I don't even mention countries where it is not just explicitly banned but people are actually thrown into jail for simply mining a cryptocurrency. Okay, let's call one such country, Venezuela seems to be the most glaring example of this kind

[Nibeloss]

I do not pay taxes for Bitcoin yet, but I think when it will be accepted in our country, the taxation will become mandatory. I hope they can not check how long I have not paid taxes.

[panju1]

I do not pay taxes for Bitcoin yet, but I think when it will be accepted in our country, the taxation will become mandatory. I hope they can not check how long I have not paid taxes.

The blockchain is a permanent record. And as far as the government is concerned, they can go back as long as they want, if they would like to collect taxes from you. On top of that, they will impose penalties and interest.

[Gaaara]

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.

Actually it isn't since bitcoin can somehow considered as an asset income tax is necessary, but it was only for income tax if you're about to save it then there will be no tax for that since you didn't gain any actual profit from doing that, the tax is only applicable with trading and other things that can gain actual profit from so tax is not as bad as you though.

[deisik]

I do not pay taxes for Bitcoin yet, but I think when it will be accepted in our country, the taxation will become mandatory. I hope they can not check how long I have not paid taxes

I don't know where you live

Since things may differ between jurisdictions significantly, but typically most laws don't have retroactive force or retrospective action. That basically means if Bitcoin is accepted or legalized in some shape or form (say, Bitcoin taxes are introduced), you won't have to pay taxes on income earned before the day when such a law would be enacted. The particular details may be different in various jurisdictions but the so-called ex post facto laws are not generally very common. In fact, in many jurisdictions and constitutions they are expressly prohibited. For example, such laws are explicitly forbidden by the US Constitution on both federal and state levels

[mrcash02]

The Bible says that people must give 10% to God. I'm not a believer, but I think that this amount is time-tested. All that the government extorts taxes more than 10% of people will hide. And bitcoin is no exception. Tax evasion is a kind of protest of the people against robbery.

It's impossible to avoid from taxes, there are middleman services that make the fees necessary to pay these people. When you transact Bitcoins the fees income go to miners, when you use exchanges the fees are used to pay the exchange service and when you turn Crypto-Currency into fiat the same...

I just think the fees should be lower than they are now, especially when we talk about governments. They are smart and use the fees income not only to pay the middleman who assist this kind of deal, but to steal also or to use on another areas where this money shouldn't be used.

[bluefirecorp]

If you sell Bitcoin for Fiat, then you have to pay taxes.
While Bitcoin is a currency, it is considered a commodity and therefore by selling it you're 'making money'.
It's illegal if you don't pay taxes.

Taxes need to be paid in any case. You in everything are right. It would be desirable to add that it is better to pay, than to hide.

Those taxes that government can justify are bound to be paid but those which are absurd and also not used for the welfare of public, why to pay those taxes. Just because of these taxes, people are highly attracted towards crypto currencies. No one is there to charge them any shitty tax in the crypto kingdom.

[filharvey]

In countries where bitcoin has not been legalized or regulated yet,there is no need to pay taxes when we convert bitcoins in to fiat.Even in our india,bitcoin has not been yet legalized or regulated and so i'm enjoying a tax free income from bitcoins.But,for countries which has legalized or regulated and which has created laws for taxing bitcoin earnings,there is no other option other than paying taxes.But i think if we sell our bitcoins for cash to a person directly,then we need not have to pay taxes for our bitcoins.

[jostorres]

In countries where bitcoin has not been legalized or regulated yet,there is no need to pay taxes when we convert bitcoins in to fiat.Even in our india,bitcoin has not been yet legalized or regulated and so i'm enjoying a tax free income from bitcoins.But,for countries which has legalized or regulated and which has created laws for taxing bitcoin earnings,there is no other option other than paying taxes.But i think if we sell our bitcoins for cash to a person directly,then we need not have to pay taxes for our bitcoins.

Ahan! Few weeks back I heard news that India has legalized bitcoins but here you saying that you are not paying any taxes for your bitcoins income. I guess no one wants to pay taxes for their bitcoin earnings. People switched to bitcoins just to avoid bloody taxes. I am myself not interested in paying for wars.

[Blamsud]

In countries where bitcoin has not been legalized or regulated yet,there is no need to pay taxes when we convert bitcoins in to fiat.Even in our india,bitcoin has not been yet legalized or regulated and so i'm enjoying a tax free income from bitcoins.But,for countries which has legalized or regulated and which has created laws for taxing bitcoin earnings,there is no other option other than paying taxes.But i think if we sell our bitcoins for cash to a person directly,then we need not have to pay taxes for our bitcoins.

Ahan! Few weeks back I heard news that India has legalized bitcoins but here you saying that you are not paying any taxes for your bitcoins income. I guess no one wants to pay taxes for their bitcoin earnings. People switched to bitcoins just to avoid bloody taxes. I am myself not interested in paying for wars.

Ofcourse as much as possible if we can not pay on it then  we will not pay on it. It is quite hard for the government to detect bitcoin users for them to tax it. The only possible way to tax btc is through the applications or services of companies through transaction fees.