Do I pay taxes when I sell an alt coin for bitcoin?

[richierich]

I am sure i will be charged with transaction fees when selling an alt coin for bitcoins, but not sure if we are still taxed. In my region, we are not yet allowed to use bitcoins. I usually exchange the bitcoins into my fiat and do the basic transactions. These transactions are taxed. So still, some or the other way one is charged with tax.

[helars2008]

As far as i know converting a cryptocurrency to another coin will not be charged with any tax since there is still no goverment around the world that has made a law with regards to charging tax on cryptocurrencies.  But whenever you will try to convert your coins into fiat then you will surely be charged with tax,  only if you have done it with legal exchanger though since im sure they are paying taxes to government.

[Mindin]

As far as i know converting a cryptocurrency to another coin will not be charged with any tax since there is still no goverment around the world that has made a law with regards to charging tax on cryptocurrencies.  But whenever you will try to convert your coins into fiat then you will surely be charged with tax,  only if you have done it with legal exchanger though since im sure they are paying taxes to government.

I can't really tell that for sure, but it would make a lot of sense to me, so I guess I would go with that.

[cryptokangaroo]

no. crypto is decentralised.

[chineseprancing]

As far as i know converting a cryptocurrency to another coin will not be charged with any tax since there is still no goverment around the world that has made a law with regards to charging tax on cryptocurrencies.  But whenever you will try to convert your coins into fiat then you will surely be charged with tax,  only if you have done it with legal exchanger though since im sure they are paying taxes to government.

On this day, no taxes given to altcoins and bitcoin because until now crypto currency is not connected to the government of each country. Otherwise bitcoin and altcoins to different part of the world is independent so there's no reasons to put taxes our income into crypto currency. However, if in case digital currency will become part of the government, hopefully that our income on crypto currency was not become taxable.

[senin]

When exchanging coins for bitcoin, only the commission fee paid to miners for the maintenance of transactions is paid. The tax fee is not paid. If the state in the place of your residence establishes a tax charge on profits from the crypto currency, it will have to be paid separately.

[SmokerFace]

Do I need to pay taxes if I sell an alt coin for bitcoin then rebuy a different alt coin. I never took out actual USD so I am unsure how that would work. Or am I only taxes on actual USD made when I cash out?

If we talking about trading exchanges that we can trade altcoins like buying and selling of altcoins there's a tax or trading fee for every buying transaction i think it's just about 0.01% - 0.1% but if we talk about government getting tax from bitcoin buyers and sellers i think there's not a rules that you need to pay tax on the gov it depends on the exchanges or wallet sites if they will put a tax on every transaction in our wallet website here in my country they didn't getting taxes when you buying bitcoin they'll only getting taxes when you selling your bitcoins and it depends on the remittance center and they'll change the buy and sell rate.

[pambud]

You don't need to pay taxes when you sell an altcoin for bitcoin , you only need to pay the trading fees , for the services of exchanges , you maybe need to pay taxes if you change to fiat money it is depends on your country laws.

[joae1975]

Gov doesn't monitor exchanges.  They're not gonna snoop your bank account either.  They'll only know if you tell them.

[infinity33]

As far as i know converting a cryptocurrency to another coin will not be charged with any tax since there is still no goverment around the world that has made a law with regards to charging tax on cryptocurrencies.  But whenever you will try to convert your coins into fiat then you will surely be charged with tax,  only if you have done it with legal exchanger though since im sure they are paying taxes to government.

On this day, no taxes given to altcoins and bitcoin because until now crypto currency is not connected to the government of each country. Otherwise bitcoin and altcoins to different part of the world is independent so there's no reasons to put taxes our income into crypto currency. However, if in case digital currency will become part of the government, hopefully that our income on crypto currency was not become taxable.

I hope that also but it is possible because I think for my opinion only government will make it to have tax because they can get a lot of it they will make some study to have it.

[MostHigh]

intra crypto currency trade what you normally pay is the transaction fee and i dont think that qualify as taxes but if you want to convert from cryptocurrency to fiat currency, lets say bitcoin to dollars, etherum to euro, all any altcoin like Wi coin to waves and then to pound sterling then you will pay taxes just like the Forex bearer does in the inter fiat currency conversion, because it is a currency trade and it needs deductions

[Maet1212]

Q-2: Is virtual currency treated as currency for purposes of determining whether
a transaction results in foreign currency gain or loss under U.S. federal tax laws?
A-2: No. Under currently applicable law, virtual currency is not treated as currency that
could generate foreign currency gain or loss for U.S. federal tax purposes.

This part means that Altcoin to Bitcoin does not need to be reported to taxes, just cryptocurrency to fiat. Is that correct? If this is true, it's going to save me from needing to input hundreds of transactions on my schedule D.

People have said that this is true several times in this thread, but they've never backed it up by quoting anything of substance.

[hiwainmoto]

There is no taxes in tx in exchanges but there are some fees that is being deducted with your holdings for the exchange.

[bitorama]

I think taxe is only for fiat operations

[andamers]

In fact, our digital coins currency is subject to transaction costs for every transaction, and in my opinion only the data currency should be taxed in accordance with the regulations when it is converted to the official currency.

[Armchair Miner]

I would like to fill several thousand 8824 transactions under the section 1031. Since each form 8824 is about 3 pages, it would take me about 10x  - 100x longer to fill out the paperwork than it took me to do transactions themselves. Are there any practical suggestions on how to accomplish this for many transactions/like-kind exchanges? US only.

An amazing amount of misinformation on this thread. I'm answering for the US. I don't know about other countries.

Of course you have to pay taxes on your profits in cryptocurrencies. This is well established.

Whether you have to pay taxes on exchanges of one cryptocurrency for another depends on whether such transactions can be claimed as "like kind" transactions. Whether "like kind" applies to exchanges between cryptocurrencies is controversial. I think that the IRS will eventually rule that these transactions are _not_ like kind and I've read extensively on the issue. Others disagree.

If you choose to treat exchanges between cryptocurrencies as like kind transactions you have to declare them as such on IRS form 8824! Absolutely everyone who trades cryptocurrencies ignores this (except me, of course).

If the IRS rules that these transactions are not like kind, and you have filed form 8824, you are likely to be OK except that you will owe taxes, interest, and possibly penalties. If you haven't filed form 8824 I wouldn't want to be you.

Not a lawyer - just my well researched opinion.

[jakiro.hovard]

Yes, to our regret, we have to pay a commission for various services provided, because otherwise nothing will work, neither the exchanges nor other exchange offices, nor transactions, everywhere we pay a small commission for the work of these services

[Nakaba]

Do I need to pay taxes if I sell an alt coin for bitcoin then rebuy a different alt coin. I never took out actual USD so I am unsure how that would work. Or am I only taxes on actual USD made when I cash out?

The platform we are using is already paying taxes depends on the country they are operating that is the reason why other platform has a high transaction fee than the other platform. If you convert your cryptocurrency into fiat they will automatically deduct it together with tax depends on the country you are residing. That is why buying and selling bitcoin has a wide gap.

[darefreads]

I think yes you should pay your taxes as you transfer it in other currency you made a tax to it and if I pay for something like that I will pay for my taxes that a government requires to a country that you are using and even when you cash it out of has a taxes that you need to like here in my country.

[AravinthP]

you will have to pay only when you cash out, but there will be commisson charges while buying other alt coins.