Not Declaring Bitcoin Income

[sujonhossan54]

The government's incentive to allow Bitcoin would be to regulate it. One day we'll all have to own up   

I'm waiting for that time.

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[biboy]

The government's incentive to allow Bitcoin would be to regulate it. One day we'll all have to own up   

I'm waiting for that time.

For sure when that happens then the government will also declare regulation of taxes so that no one will end up avoiding paying tax, but for me it is better than totally eliminating bitcoin in our country, which for me is a great help not only in people here in our country but all over the world.

[Bagaji]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

Well here in my country Bitcoin and crypto currency are not accepted as a means payment for goods and services and that has made government not to tax even the local exchanger let alone individuals that are involved in the crypto currency business activities which is one of the benefits we stand to enjoy at the moment pending when the government will realise that they are making a big mistake.

[richardsNY]

If you gain money by making trades or gaining profit on your coin, no one can know unless you tell them. But if you want to convert the money into your account you will be highlighted in the eyes of government and at that time you should pay taxes, otherwise you can face problems at you door.

If you trade on centralized exchanges, all your actions are logged and stored on the exchange's servers basically for ever. It doesn't matter if you don't send any fiat to your bank account. At that point you should consider all your trades and profits to be known (compromised) by the government, and therefore you should be paying tax over your gains and whatnot to avoid potential problems. If not, it's basically waiting for problems to come your way, because it's just a matter of time before exchanges are obliged to transfer details of account holders to their local tax department. Governments aren't stupid. They see that the far majority of the people don't pay their due taxes, and the easiest way to deal with this, is to force through restrictions the exchanges have to abide by. No way to avoid it with centralized exchanges....

[Mobshady24]

There's a lot of way for the government to track your profit if they want to do so it's just that there are too many individual and businesses that illegally avoiding taxes compared to profits coming from cryptocurrency but i believe there will be a time that government will chase us for those profit we earn from bitcoin especially there's a lot of news going around that many individuals made fortune themselves through holding bitcoin for such a long time.

[CryptoKu-een]

In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.

[Budugbass]

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

About tracking, in the country where I live.. it's still not seen that the government really intend to track the profit from the income/transaction of bitcoin, this is still as in ignorant or not followed up, the state only states.. just said be careful with the risks, if it's got a risk, the country/government will not participate/helping in it.

[zarados]

as long as the bitcoin you get from other wallets didn't melt into the Fiat, of course the government will not know how much your income and how much total assets you have. That is, the assets you own remain anonymous. Another case, if all the bitcoins you have sent to the exchange to sell or cash out, of course the government already had a huge data treasure that you have since your bitcoin in store by the exchange wallet. However, the government cannot suspect the assets you have is illegal, as long as you can prove it where they come from.

[Granxis]

In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.

In some countries there are local Bitcoin exchanges, which have stock exchanges, identity information of customers and bank accounts. Accounts with high Bitcoin entries can be controlled by the government.

[Tigorss]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

The government may not be interested in checking your cryptocurrency transactions for now, but they may not ignore it for ever. The IRS decided to go fishing into old coinbase records dating back a few years suddenly. There is no surety that your government might not do the same.

not only are not interested, even some countries strongly disagree with bitcoin that will damage their own currency

[Fantastic33]

Bitcoin here in our country is still not considered as a form of currency. Exchanges are allowed, however the bank always warn the public to be careful on using or investing crypto due to financial risk and security issues. There are also people who were already become victims of crypto scams, and the bank wanted to minimize or eradicate this type of problems. When it comes on taxing income from bitcoin, our country do not have any rules yet. Tracking crypto holders can be possible by getting information of those people who used to cash out money through their bitcon wallet and used to take it from money exchange shop. So its good to have a good record of our bitcoin transactions. But i think in the near future, they will impose tax on those investors or traders who earn a lot from it. Maybe they will set certain amount of bitcoin that can be taxable.

[tambok]

Bitcoin here in our country is still not considered as a form of currency. Exchanges are allowed, however the bank always warn the public to be careful on using or investing crypto due to financial risk and security issues. There are also people who were already become victims of crypto scams, and the bank wanted to minimize or eradicate this type of problems. When it comes on taxing income from bitcoin, our country do not have any rules yet. Tracking crypto holders can be possible by getting information of those people who used to cash out money through their bitcon wallet and used to take it from money exchange shop. So its good to have a good record of our bitcoin transactions. But i think in the near future, they will impose tax on those investors or traders who earn a lot from it. Maybe they will set certain amount of bitcoin that can be taxable.

Well, almost all the people, banks and countries have same perception when it comes to investing in bitcoin and that is why if you take the risk here the higher income you will have, bitcoin has already been part of our society so just invest on it as this has been very useful to us.

[brylle34]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

The government cant track your bitcoin ofcourse because you can change your bitcoin or eth address whenever you want, and that is one big advantage of bitcoin, if your from the country where you need to declare you assets , Im preety sure you know that it is impossible that government officials and workers are using bitcoin as there hiding banks for their future. Not just Government officials but every people can use bitcoin to store and secure there futures

[DREWSKIE]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

Hi! in my country, we are free also to participate in Bitcoin buying and selling without consent to government. It seems that the government unable to track the Bitcoins income of an individual and give tax in it. Taxes may come after an individual exchange/claim/check out Bitcoin and converted to Local currency, then go to a shopping, pay bills, buy food and etc. In this way the government can collect tax to an individual. Like what you said if not declaring Bitcoin income the government hardly track it or not even traceable.

[Sithara007]

In my opinion, they won't be able to track your income unless declared. Cause if Bitcoin is a system that can be tracked by centralized authorities like banks and government, where's the sense of it being decentralized.

They may or may not be able to track your incoming funds if they are in the form of Bitcoin. But the moment you convert your coins to fiat, they will be able to track you (unless you are selling your BTC for physical cash without any ID verification). So be careful about it.

[rhamdy]

I do not know. Because what I understand the Government only prohibits Bitcoin if used as a tool of transactions but still allowed as an investment asset. But the status of Bitcoin in my country is still not legalized and do not know will be legalized or not.

[Ragnartron]

You don't need to pay tax if you are dealing with small amounts. If you cash out and spend it on your daily cost or buying clothes, phones, TV's etc. you are fine. But if you buy something more valuable like cars, houses and such your government will ask you where did you get it. In that case, paying taxes would be advisable. There are some tools that US government or others can use to track crypto transactions and connect them to you exchange profiles, which are verified with documents that you provided them when you registered.

https://www.chainalysis.com/

[budz0425]

You don't need to pay tax if you are dealing with small amounts. If you cash out and spend it on your daily cost or buying clothes, phones, TV's etc. you are fine. But if you buy something more valuable like cars, houses and such your government will ask you where did you get it. In that case, paying taxes would be advisable. There are some tools that US government or others can use to track crypto transactions and connect them to you exchange profiles, which are verified with documents that you provided them when you registered.

https://www.chainalysis.com/

That is right, the government also allows you to have a small income, they will understand you especially if it is not a fixed income, but it depends on the country since there are really country who were so strict in tax evasion, they want you to declare all your income.

[Virtual miner]

Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.

However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.

I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?

Yes the laws are not that strictly implemented right now. In fact in many countries, the laws are being made but their implementation is not upto the mark!!

But yes when the implementation is made strong, maybe the systems are made and being executed, the government will be able to track the never declared gains because the proper records will be made!

[preelee04]

Whatever you gain from Bitcoin is not stored in any of the government records so if you are not declaring that into your income you should not have any problems.