Bitcoin vs Taxes

[laxinternational]

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.

I also think the tax must be paid unconditionally. Taxes are the requirements coming from legit power of a country or state. So wtihout tax, we can't prove that our income is legit. Othwerwise, they could have said it's a crime sourced money.

[Dainye_dyep]

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.

True, and thats what bitcoin may encounter for the next few years , since it provides so much money it doesnt shock that sooner every tradings and investments may require tax and thats one of the condition when you are trying to deal with legalization of bitcoin worldwide, it may run with other currency and it will be use worldwide taxes will run over it.

[mrcash02]

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.

I also think the tax must be paid unconditionally. Taxes are the requirements coming from legit power of a country or state. So wtihout tax, we can't prove that our income is legit. Othwerwise, they could have said it's a crime sourced money.

When a country economy works in a fair way I could agree with you, but it's not what happen on many countries. The taxes are expensive, the services quality in return is low and the corruption is high. So why must we be fools to pay excessive taxes? People become poor or they are unable to develop their life's quality for this reason, Bitcoin can help us this way.

I pay what I have to pay, but the extra income from the internet (Crypto-Currency) they don't have the right to charge me.

[rivoke]

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.

True, and thats what bitcoin may encounter for the next few years , since it provides so much money it doesnt shock that sooner every tradings and investments may require tax and thats one of the condition when you are trying to deal with legalization of bitcoin worldwide, it may run with other currency and it will be use worldwide taxes will run over it.

But if bitcoin become currency , it will broke bitcoin as decentralized currency since it will being control by goverment
Bitcoin should not be a currency , it's unique and let it be as investation plus currency advantage

[deisik]

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.

I also think the tax must be paid unconditionally. Taxes are the requirements coming from legit power of a country or state. So wtihout tax, we can't prove that our income is legit. Othwerwise, they could have said it's a crime sourced money

Well, there are different views on this

Indeed, if you think that the powers that be are legit, then you would obviously consider the taxes you have to pay as legitimate too ("the tax must be paid unconditionally"). It is your choice, after all. But what about those who doubt the legitimacy of the authorities? Should they also pay taxes unconditionally even if they disagree with that? If so, does it really matter if the power of the authorities is legitimate, or you just have to pay the taxes because they can force you to pay them under the threat of suffering some unpleasant consequences if you don't?

[Proton2233]

In order for people to pay taxes honestly they need to trust their government, love their country and to see for what purpose our money is spent. Now this is not why people don't want to pay taxes with bitcoins, not Fiat. The problem is not in currency, but in the mind.

[stompix]

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.

True, and thats what bitcoin may encounter for the next few years , since it provides so much money it doesnt shock that sooner every tradings and investments may require tax and thats one of the condition when you are trying to deal with legalization of bitcoin worldwide, it may run with other currency and it will be use worldwide taxes will run over it.

But if bitcoin become currency , it will broke bitcoin as decentralized currency since it will being control by goverment
Bitcoin should not be a currency , it's unique and let it be as investation plus currency advantage

Bitcoin is already a currency it has been used as a currency for years , it has been used to buy and sell stuff and it hasn't been centralized.
And the only reason BTC has managed to attract attention was that people saw it as a currency in the first place , as a way to move funds and only in the latter stages as an investment.

Stop using it to buy stuff or to act as a way to transfer wealth across the globe and nobody will bother with it as an investment alone.

[Kisanaq]

Anything can be arranged, it's time there is a tax rule for bitcoin. Many people become millionaires because bitcoin and as good citizens we have to pay taxes. So it can be useful for many people.

[bajing]

Paying taxes or income tax, it's mean bitcoin has legalized in our country. it's true, we all wishes not to pay income tax when using bitcoin as form of money but actually what's wrong by paying taxes as long we got benefit from that's and when we face a problem, i think we will got support from government, in case the exchanger have a problem or collapse.

[LeGaulois]

I pay what I have to pay, but the extra income from the internet (Crypto-Currency) they don't have the right to charge me.

Because you probably just make a few dollars online. But the income earned from the internet is supposed to be reported for your taxs as well.  Sometimes it is done automatically. Do you think freelancers never pay a cent with taxs? Of course, they do. No matter cryptocurrency or not an income needs to be reported and yes your gov. does have a right. Otherwise all the big firms  would pay theirs workers in cryptocurrency so they could save millions dollars yearly
So you except to cheat your country and not to pay the taxs, but your country is supposed to give you great infrastructures, hospitals, etc without you giving a cents? Using the money of others people?

[Kava]

Bitcoin was created as an anonymous uncontrolled currency, and taxes would deprive it of such an opportunity. I think that you do not need to pay taxes for using crypto-currencies.

[salihno71]

Interesting point here is that taxes are related to the fiat currencies one way or another. If/when cryptos become percentually significant part of global daily transactions, governments will have to figure out new ways to address the issue. It will be interesting to see how this will unfold.

[chip1994]

Paying taxes or income tax, it's mean bitcoin has legalized in our country. it's true, we all wishes not to pay income tax when using bitcoin as form of money but actually what's wrong by paying taxes as long we got benefit from that's and when we face a problem, i think we will got support from government, in case the exchanger have a problem or collapse.

Exchanger, miner are subjects of government want taxes fees user Bitcoin, that is purpose of them when accept Bitcoin and helps Bitcoin become to legal. Taxes fees with other user Bitcoin is possible, because they cannot track all user on network

[Webetcoins]

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.

True, and thats what bitcoin may encounter for the next few years , since it provides so much money it doesnt shock that sooner every tradings and investments may require tax and thats one of the condition when you are trying to deal with legalization of bitcoin worldwide, it may run with other currency and it will be use worldwide taxes will run over it.

But if bitcoin become currency , it will broke bitcoin as decentralized currency since it will being control by goverment
Bitcoin should not be a currency , it's unique and let it be as investation plus currency advantage

Yeah! I don’t know why people want bitcoins to be treated as national currency. This thing is going to give bloody governments control over bitcoins and probably that would be an end of our freedom provided by bitcoins. Let them be the way they are, they are doing best this way.

[Milo_Kidd]

As of I know bitcoin here in our place have no taxes. I dont know if its transaction tax is already deducted. But if not its the good thing here in bitcoin. Maybe in transacting this cryptocurrency the provider who have the right for taxes. I not really sure how was the bitcoin transaction charges. May it depends on the network provider. Or the bank itself.

[stompix]

Bitcoin was created as an anonymous uncontrolled currency, and taxes would deprive it of such an opportunity. I think that you do not need to pay taxes for using crypto-currencies.

Bitcoin was always semi anonymous.
Besides Satoshi wasn't really emphasizing on anonymity in his paper.

The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained by breaking the flow of information in
another place: by keeping public keys anonymous. The public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone. This is similar to the level of information released by stock exchanges, where the time and size of individual trades, the "tape", is made public, but without telling who the parties were

This is all we got in the initial project.
And taxes are not on using crypto currencies , taxes are on gains by using everything or selling stuff.
It's quite easy for any authority to tax cryptos if they put their heads to it for more than a minute.
After all , in order to convert or buy stuff you still need an exit way. This is where the anonymity ends.

[tittensor]

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.

True, and thats what bitcoin may encounter for the next few years , since it provides so much money it doesnt shock that sooner every tradings and investments may require tax and thats one of the condition when you are trying to deal with legalization of bitcoin worldwide, it may run with other currency and it will be use worldwide taxes will run over it.

But if bitcoin become currency , it will broke bitcoin as decentralized currency since it will being control by goverment
Bitcoin should not be a currency , it's unique and let it be as investation plus currency advantage

Yeah! I don’t know why people want bitcoins to be treated as national currency. This thing is going to give bloody governments control over bitcoins and probably that would be an end of our freedom provided by bitcoins. Let them be the way they are, they are doing best this way.

When Bitcoin community want it become to famous and expensive, it also synonymous Bitcoin user accept the future government control Bitcoin. Because if they cannot taxes fee in Bitcoin, they never agree the survival of Bitcoin.

[RodeoX]

Bitcoin was created as an anonymous uncontrolled currency, and taxes would deprive it of such an opportunity. I think that you do not need to pay taxes for using crypto-currencies.

That will make a poor legal defense at your trial. In the USA it is this simple:
Did you make money? YES
Then you owe tax on it. No exceptions.

[adzino]

Bitcoin was created as an anonymous uncontrolled currency, and taxes would deprive it of such an opportunity. I think that you do not need to pay taxes for using crypto-currencies.

Does not matter if it is an anonymous currency, as long as you are making money, as a law abiding citizen you must be paying taxes.
By the way, bitcoin is not completely anonymous, it is more like pseudo anonymous. Google about it and you will know what i am saying.

[barbara44]

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 have to face various taxes. But it won't really matter a lot because it is a important thing we should pay. Bitcoin itself does not have any taxes but converting it to fiat takes some tax. That taxes can't be bypassed here. In order to convert my bitcoins to cash, i have to do a bank deposit and it surely takes some tax. We have to pay GST in my region. Yes, the taxes depends on the income but it can't be refused. Bitcoin is a legal act and also you can draw your audit at the end of year to keep all your records.