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

[senin]

As far as I know, when converting from one cryptocurrency to another, taxes are not levied. As a rule, taxes are levied at the termination of cryptocurrency in fiat. Yes, and the sale of one cryptocurrency and the purchase of another is very difficult to track. In addition, it is necessary to take into account that taxation is applied when people earn a certain profit. Selling one cryptocurrency and buying another does not give us profit yet and there is no point in taxing such operations. However, each of us needs to follow the legislation of our country and know it well.

[arnoldrimmer]

I don't pay pax when I sell my alt for Bitcoin but rather a transaction fee to the exchange  which the amount varies depending on the exchange platform through which you are selling or even  buying

[Jose Mourinho]

Why pay taxes to the government while the country is banned crypto? Of course this is a funny thing, if the country expects tax from crypto activity then the first thing to do is to legalize crypto immediately.

[Dimas99]

No, you just need to pay the trading fees which was for the services of exchanges.

the exchange fee is precisely if the tax might be that the government cannot yet issue taxes from crypto currency transactions because the government in my country still prohibits crypto currency for transactions and the government cannot provide tax on the crypto currency itself

[2Kool4Skewl]

I do not pay anything. I do not see much point in this. As long as the government does not normally arrange everything, I'm not going to pay anything. Of course, except for the commission which is on the platform where the exchange takes place.

[sjbi]

As far as I know and what I have been experiencing is that you can exchange your tokens with anyone. But for that, you need to pay certain amount for trading. And in another case, when you transfer your coins to another exchange, you also need to pay some certain fees. And when you sell coins and withdraw fiat money, you have to pay tax the government has fixed.

[Mrsparks]

I think it depends majorly on your county law and the ways by which u actually trade it for fiat currency.. I have trusted individuals I sell to so I seldom use exchangers nor get to pay taxes..

[puremage111]

Dont think so
Crypto to crypto transaction is not taxable but crypto to fiat is if not mistaken
But it really depends on your country tho
Anyhow Crypto taxing has different rules and regulations in different continent

[raptorez]

You always pay. Remember this phrase, you always really overpay. As soon as you bring your funds to the exchange, you pay for the input and withdrawal, but the exchange only pays for the withdrawal.

[Tahdayi]

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?

Actually you can send this money to your card and no one will ask where they come from you , I did so and everything went well , but if you want to pay taxes then pay

[Pasutinmeur]

If what you meant by taxes is the tax that you pay to a government, I don't think you pay any tax if you just buy/sell alt-to-btc or btc-to-alt you might need to pay taxes if you buy/sell bitcoin to Fiat money, but it also only occur in some exchange.
However, you still need to pay the exchange fees if you buy/sell alt to bitcoin. Most of exchange have fees, only small number of exchange does not have exchange fee, only withdrawal fee.

Basically, the tax has already applied to the exchange site but if there will be a tax for income and it will be a different thing that totally depends on the regulation that already applied in any country. It will need a lot of time to discuss.

[mbluxs]

That includes tax. relaxation fee and withdrawal of course it will also be included in the tax from the exchange company, without us knowing that bitcoin has been taxed without doing anything else complicated.

[Prompyboo]

Dont think so
Crypto to crypto transaction is not taxable but crypto to fiat is if not mistaken
But it really depends on your country tho
Anyhow Crypto taxing has different rules and regulations in different continent

it all depends on the exchange you are using and not on the country. each exchange has its own rules on the introduction of a commission or its cancellation

[Wewe Gombel]

In my country there are no clear rules about cryptocurrencies so there is no obligation to pay taxes, actually I hope the government immediately legalizes crypto so that it can provide additional income for the country.

[ulhaq]

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?

in my opinion you only have to pay taxes from the USD that you cash out, because if you only trading altcoin and bitcoin, in my opinion it hasn't given you income yet, so you don't need to pay taxes if you haven't cash out to USD.

I agree with this, from reviewing all the published information. It is unrealized as you point out.

[Ayiranorea]

When an altcoin is traded for bitcoin there will be a trading fee for that, apart from this I don't find any fee being levied on the respective trade. Countries have regulated the use of cryptocurrency as well have levied taxes, and these taxes were levied upon the transaction done from bitcoin to fiat. This too isn that effective, and these are the factors that make governments oppose cryptocurrency as it is hard to tax them.

[Gab20]

I think a lot of people are yet to realise that the exchange they trade on, most especially centralized exchange, pays tax. So for such exchange to be able to meet up with their charges by the government, they would have to put some of the charges on their customers, which is taken from both trading and withdrawal fees. I am not surprised to see some exchanges charge exorbitant fees.

[Collinberg]

It depends on your country, in my country digital assets are not really recognised as something that even exists so taxes are not charged for them no matter the amount of profit you make, they wouldn't even know how to track it to begin with.

[lunobird]

wow there are so many idiots on here and most of you got it so much wrong.  Please do your research. A simple google search instead of asking for advice  from the ignorant, anarchist and tax evaders of bitcointalk.

https://www.cryptotrader.tax/blog/how-to-handle-your-bitcoin-and-crypto-losses-for-tax-purposes

By united states IRS tax laws, An alt coin to bitcoin trade is a taxable realized event.  Regardless if you put the money in the bank or not.

Like kind rules do not apply anymore. IRS in the united states made it clear.

Pay your taxes you owe or face severe tax penalties. Some people had to pay for over 50k in penalties  for avoiding paying their taxes, things will get messy and you will have to hire a tax lawyer.


Yes they can easily track you.  btc and eth and many other crypto currencies have transparent blockchains and your information is recorded as permanent record.  A central exchange like coinbase, binance, etc  would have to hand over your records if the IRS suspects you of avoiding paying taxes and wants to really crack down.

Most countries will follow united states tax laws so please do your research on your specific country.

[ulhaq]

https://www.cryptotrader.tax/blog/how-to-handle-your-bitcoin-and-crypto-losses-for-tax-purposes

By united states IRS tax laws, An alt coin to bitcoin trade is a taxable realized event.  Regardless if you put the money in the bank or not.

According to what? There is no official IRS guidance that states that an altcoin to bitcoin trade is a realized event. Because random people posted their opinions on sites indexed by google does not mean it is so. And if you look at the official IRS guidance, it only mentions selling crypto for USD, and exchanging crypto for real assets (like a coffee), which ARE both taxable.

When stocks are sold, they are sold for USD, and then the proceeds are used to buy another stock. It is not comparable to a crypto-crypto trade. And stocks have real assets like land, buildings, equipment, intellectual property, employees, and so on, none of which exists in an altcoin. Tax professionals have no understanding of crypto. Many will admit that they cannot provide guidance. Others with no experience/understanding of crypto think an altcoin is like a share of a stock. So they can give advice which is wrong.

Like-kind has nothing to do with anything. It's for people exchanging land or property, or similar things. I cannot claim like-kind for stocks. If I was discussing stocks and brought up like-kind, it would mean nothing, just like like-kind for crypto means nothing.