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

[chaosfourever]

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?

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[HardFireMiner]

Yes, actually you need to pay taxes, but I think the actual need of paying a tax occurs when you will buy USD(or your local currency). Then you need to declare the trade and pay the according tax, if such tax exist in your country.

[iram3130]

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?

It actually depends on how you are selling your bitcoins. It depends on whether your local exchange includes taxes on your buy/sell. If I need some money then I sell my Bitcoins to my close friend and he pay me in cash so I don't pay any taxes right now.

[renes]

If you turn any of your coins into usd or your local currency, depending on your country's laws you have to pay taxes but if you exchange cryptocurrencies you don't need to pay taxes.

[Yudhisthir]

Just to the exchanges. Your government has nothing to do with it. That's why they don't want you to do that exchange.

[YYmeans]

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

[NavySeals]

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?

Paying tax for your btc transactions is not reasonable. It's not the property of your country or government. You shouldn't pay tax for this transactions. bitcoin is decentralized and nobody can claim tax from you, remember this. Governments should take their hands over bitcoin.

[aoluain]

When you buy or sell bitcoin on an exchange
there are no TAXES involved just transaction fees
for the MINERS to process your order,
as YYmeans posted above.

When you want to CASH-OUT into your bank account
that is when you will be {possibly} liable for taxes,
this depends on your country, you will more than likely
be allowed a certain amount TAX-FREE.

[aoluain]

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?

Governments should take their hands over bitcoin.

I started a thread about this mindset of not paying taxes,
who is funding the Healthcare, Education, Public Services and Welfare?
We are in our respective countries!

Taxes have to be paid to keep our country running and also to pay
for useless politicians  !

https://bitcointalk.org/index.php?topic=2063676.msg20623866#msg20623866

[sylance]

I don't think you should be asking for tax advice on a public forum, as I doubt anyone here is qualified to answer your question.  Also, it all depends on your country and also what profit you generated.  If you're sitting on a cool $3 profit then it's not going to be looked at... but if by some blessing you're cashing out $10-million then yes you'll need to figure out how to get that into cash and pay taxes on it.  At that extreme example I'd hope you pay for an accountant to walk you through all the legal issues.

[iLatios]

I change coins in the app Shape Shift. There is a fixed price.

[swissgang]

If so, everyone have to pay huge amount of taxes. Only profit you have made matters when you will pay taxes.

[hase0278]

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?

To be particular, no one needs to pay taxes on government when they are buying, selling and rebuying. All one needs to pay is the exchange fee that they automatically deduct whenever one initiates a transaction. Trading is taxable only when one is withdrawing profits. Even if it seems one isnt required paying tax for conversion of fiat, they still pay for tax via the service that they will use to get the fiat although it is lesser than the required.

[Morphling]

to most exchange, maybe we pay no taxes only when we deposit, buy/sell or withdraw all shall pay taxes, some exchange's rate is very high, i think this taxes is too high to against the blockchain original intention:

[zikabra]

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?

I never heard any country is taxing bitcoin, so i don't think you have to pay tax when you are exchanging altcoin for bitcoin and vice versa.
However when you are exchanging bitcoin to your international currency you have to pay tax, and how much tax you have to pay that is something you will need to ask your tax administration.

[VanDeinsberg12]

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?

You need to pay a little task to convert your altcoin for bitcoin, i meant the order tax + transaction fees. That's already including all of the tax by exchange your altcoin into the bitcoin itself.
You must pay for that but don't worry that just a little amount. Just like a penny.

[3months18w]

You just have to pay for the fees, i think every exchanges  are the same to you.

[chaosfourever]

I don't think you should be asking for tax advice on a public forum, as I doubt anyone here is qualified to answer your question.  Also, it all depends on your country and also what profit you generated.  If you're sitting on a cool $3 profit then it's not going to be looked at... but if by some blessing you're cashing out $10-million then yes you'll need to figure out how to get that into cash and pay taxes on it.  At that extreme example I'd hope you pay for an accountant to walk you through all the legal issues.

Ya I am not taking out any actual dollars. Was just talking about doing trades within exchanges. Sorda like reinvesting my alt gain to bitcoin then to another alt to make more gains. At no time am I actually transferring money to my bank account. This exchanging does bring up another matter of how it would effect capitol gains due to not technically having that specific coin for at least a year.

[nonlinearboy]

I think you will pay the trading fees, not the taxes since the fees will be paid to the exchanges, while taxes is paid to the government. Different exchanges may have different fee ratio, you'd better to check that before trading altcoins.

[Ayers]

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?

you don't need to pay taxes when you sell for altcoin or for bitcoin, only when USD or other fiat money are involved you need to pay taxes, but it's better to see your country laws, because there could be some exception