Bitcoin vs Taxes

[Gudhal Untu]

I think this is a difficult thing, if the government wants to levy a tax from bitcoin then it should be legalize bitcoin, but look funny if bitcoin is banned but wants to levy a tax from bitcoin.

[mOgliE]

Hey,

Consider your wage. You may receive it monthly in dollars, euros, yens or whatever other currency. You are going to spend a part of it on your rent, food, clothes, and so on. But you may not spend all of it. Either because you want to buy a car, go in holidays or just make some savings for your old days.

For the government, the purpose you use your money for is completely uninteresting. If you save 100% of your wage, you still have to pay taxes on it.

Well, when you sell bitcoin for fiat currency, what governmental institutions see is that you have earned money. And such money is subjected to taxes, whatever its purpose! 

[Factmine]

To be honest, everything can be taxed even your bitcoin earnings. For example you bought bitcoins in 2013 for $300 and sold it today at $8,000. That $7,700 is taxable as income, the classification and how much it should be taxed will depend on your local laws. So you better check if how much tax you should pay. However, if you are holding bitcoins as it and profited because of the increase, unless you cash that out and sell it then there is no profit to speak off. Right now that is the only way they can tax the use of bitcoins for regular users, but it may be different for bitcoin exchanges.

[BitcoinLoan]

Paying tax for buying bitcoins have no sens because country want earn money from this but do no want legalize coins.

[Happichfun]

Bitcoin is coin for free so you only need to pay fee and not need

you can use your mind and find other way to exchange better than government way

[Harlot]

To be honest, everything can be taxed even your bitcoin earnings. For example you bought bitcoins in 2013 for $300 and sold it today at $8,000. That $7,700 is taxable as income, the classification and how much it should be taxed will depend on your local laws. So you better check if how much tax you should pay. However, if you are holding bitcoins as it and profited because of the increase, unless you cash that out and sell it then there is no profit to speak off. Right now that is the only way they can tax the use of bitcoins for regular users, but it may be different for bitcoin exchanges.

That is where you are wrong because the income gained from trading or investing is not taxable under income tax but it is taxable under capital gains tax. Imagine buying a piece of land for 100,000$ and later on you sold it for 250,000$ the 150,000$ is taxable to capital gains tax. Some countries even exempt them from capital gains tax if they bought another land with that 250,000$ they earned.

[haroldtee]

Paying tax for buying bitcoins have no sens because country want earn money from this but do no want legalize coins.

Whatever would make them to include the payment of tax obviously shows they are not making it illegal, even if they are not stating the legalization to be official. The thing is as long as you are going to be converting your bitcoin into fiat, you are still being regulated by the fiat rules and government's monetary policies. No one will hold you or monitor you if you do a P2P transaction, but until then, you just have to stay in lane with their rules as long as you are making profit from your holdings and converting it to fiat most especially.

[A Feeder]

Bitcoin is not taxable because no one is controlling it. Taxes are created by the government to corrupt at many times.

[Yamifoud]

Bitcoin is not taxable because no one is controlling it. Taxes are created by the government to corrupt at many times.

Bitcoin is not being taxed but if you convert it into fiat currency, then that's the time the government will ask for your tax. This is the most commonly problem with other countries, that's why they are preferred to ban crypto(probably bitcoin) because they can't benefit from here.

[Sled]

Bitcoin is not taxable because no one is controlling it. Taxes are created by the government to corrupt at many times.

Bitcoin is not being taxed but if you convert it into fiat currency, then that's the time the government will ask for your tax. This is the most commonly problem with other countries, that's why they are preferred to ban crypto(probably bitcoin) because they can't benefit from here.

You can avoid from being taxed of your profits in bitcoin by selling it to a person which he will give you the whole amount of profit without cutting some amount for taxes like the government were doing ever since then. I always do that because i don't want to pay tax and i just want the whole amount of profit because for me it is just a good idea since when i am buying stuff i am paying tax too.

[noictib]

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.

To pay tax with the use of bitcoin is a better option to show your honesty to the government Because most of the people in this field are making many thousands of dollars per month but still they are not paying tax honestly and showing that they are not making the use of the bitcoin perfectly.
Here in some countries bitcoin is regualated so people are using bitcoin with the pay of the tax smoothly but in those countries where bitcoin have no official approval to use or not to use is having a big confusion that why we should pay tax if no rule or law made by the government of the country and also why they are not decalres bitcoin as legal way of use  Because they want tax .
Well here if in your country no rule made for the bitcoin then surely you should pay monthly with the option of the other category tax ( one of my friend paying tax much to use other category of the tax section

[EdenAquis]

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.

Those individuals are effective in a future since they are doing awesome things for government so they can be more fruitful so what would we be able to state that we should pay duties to government by giving charges God can be upbeat as well and government will be run as well. So we can state that we should need to pay our experts in our nation.

[zergenyt09]

When it comes to taxes, the Internal Revenue Service has ruled that bitcoins and other "convertible virtual currencies" are "treated as property" and not treated as currency.

Well, that’s true, Bitcoin should be treated as a property. I don’t even see it as a Currency, and it will never be, it’s just something that we can invest our currency into just for us to make extra money. Taxing Bitcoin won’t really be easy for the government, but if they manage to do so, then it will lead to the destruction and end of bitcoin.

Think of it, nobody would like to be paying tax for bitcoin, just ordinary transaction fees were implemented and people felt like killing themselves, talk more of adding taxes to it lol.

The fact that bitcoin is an asset does not make it less of a currency. A time would come when bitcoin would be widely used as currency once the scaling issue is solved which would even make it more profitable to invest. Nevertheless, I totally believe that taxing will be very hard for the government unless in the situation of conversion into fiat which is why most of them are not really saying much about it.

I can imagine what it would be like when taxed in some places, you had be surprised people moving from more taxed regions to less tax regions, and probably what we even want.

[StarofBTC]

When it comes to taxes, the Internal Revenue Service has ruled that bitcoins and other "convertible virtual currencies" are "treated as property" and not treated as currency.

Well, that’s true, Bitcoin should be treated as a property. I don’t even see it as a Currency, and it will never be, it’s just something that we can invest our currency into just for us to make extra money. Taxing Bitcoin won’t really be easy for the government, but if they manage to do so, then it will lead to the destruction and end of bitcoin.

Think of it, nobody would like to be paying tax for bitcoin, just ordinary transaction fees were implemented and people felt like killing themselves, talk more of adding taxes to it lol.

Apparently, that is the only way a government can really get to tax bitcoin anyway and that is by legalizing it first. This would make the local exchanges controlled by the government and then anyone who wants to convert to fiat or vice versa will have to stick to the regulations. Totally where tax comes in. It is going to be crazy though and most people might just want to keep using it the way it has always been rather than the government getting involved.

[carlisle1]

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.

for me Mate,theres no problem to be collected by tax,because i
believe that the government has the rights to collect tax from every people
who earn,thats why some of the businesses called ILLEGAL because they
paid now taxes and continue to earn.

And its our obligation too being people of every government to pay
taxes when we make a profit so its fair in both parties.

[karnwillbit]

When it comes to taxes, the Internal Revenue Service has ruled that bitcoins and other "convertible virtual currencies" are "treated as property" and not treated as currency.

Well, that’s true, Bitcoin should be treated as a property. I don’t even see it as a Currency, and it will never be, it’s just something that we can invest our currency into just for us to make extra money. Taxing Bitcoin won’t really be easy for the government, but if they manage to do so, then it will lead to the destruction and end of bitcoin.

Think of it, nobody would like to be paying tax for bitcoin, just ordinary transaction fees were implemented and people felt like killing themselves, talk more of adding taxes to it lol.

That is really a very solid point bro. We have been paying taxes right from the onset irrespective of whether we are spending, saving or whatever. As long as we are making use of the fiat currency by replacing our bitcoin for it, then tax is definite. Moreover, in so many places, you still just have to pay tax even for some of the things you use, so I really do not see how they are going to be able to evade tax in this case.

[Hamstead]

It is really be a challenging part of the government if they want to imposed tax to all bitcoin holders, not only because of anonymity identity but also of some person that never tell the total amount they hold. And i believe that this taxation plan won't succeed is just because a lot of people will opposed to this and maybe it could just create a misunderstanding with the authorities and it can lead from banning cryptocurrency.

[Mobshady24]

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.

It depends on the ruling of your country, any object can be tax whatever form, bitcoins on the other hand can be taxed as you exchange it to your local currency or the gains from the change of its value depending on the ruling.
Good thing we don't have tax in using bitcoins yet here.

[mx667]

It is really be a challenging part of the government if they want to imposed tax to all bitcoin holders, not only because of anonymity identity but also of some person that never tell the total amount they hold. And i believe that this taxation plan won't succeed is just because a lot of people will opposed to this and maybe it could just create a misunderstanding with the authorities and it can lead from banning cryptocurrency.

This is the uniqueness of Bitcoin, we do not have to deal with the government, we do not need to pay taxes, no transaction restrictions, no limit on the amount of money for transactions, no personal information such as name, age, and residence, Bitcoin is a true solution of freedom. But we need to know that, the country has enormous resources to take advantage of Bitcoin. If the state wants, they can find ways to monitor and control Bitcoin. Maybe the country will not be taxed from people who use Bitcoin, but actually the country can still use Bitcoin for profit if the country is willing to learn Bitcoin.

[n0ne]

There are people who have been earning good through bitcoin as well other cryptocurrencies. More people too were cashing out their earnings often. This has lead for the taxation of bitcoin, in specific taxes were getting into implementation around different countries based on the regulatory laws followed.