Bitcoin and Tax?

[MIT2K]

Whats the deal with Bitcoin and paying tax? How does it work?

[soham]

Taxing on bitcoin entirely depends on your country's local law. If your local law says that you need to pay tax on bitcoin, they may also have a defined guideline for the same. However, in my country the legal status of bitcoin and crypto currency is still not clear. So I don't have to follow any guideline to pay the taxes. However, I always keep track of the amounts I cash out from my bitcoin earnings and add that amount to my tax filing information sheet so that no one can point me out saying I own black money. But I only report whatever I cash out only, I don't report anything which I am holding in bitcoin.

[MickeyT2008]

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

[MIT2K]

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

wow very interesting coming from the UK, Thanks!

[lasry]

As far as I know some Governments (collecting taxes ) treats bitcoin as property and not as currency making it taxable. Every time we buy sell or even trade there happens some tax impacts. In our country, Income is taxable so whenever we receive payments through bitcoin (sort of income) it is conformed to be taxed.
Take note that there are several guidelines on how bitcoin are taxed  and might be felt during filing of personal tax returns, declaring bitcoin as property

[flower1024]

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

Hoo really but my question is how they can track? Through bank statement, they will get information where the money comes from. But what if we exchange our bitcoins for cash in local exchange then also they can track? In my country, our governament will not ask how you earn money but the end of the year you must do IT file and pay a normal tax to the governament.

[MIT2K]

Yes, it just depends on your country, and of course, if you dont want to avoid taxes.
If you are on the US, dont even think about avoiding to pay those taxes, because you are going to go jail if you are catched up, it is a very difficult country to try to avoid taxes, lol.

in the UK you have to pay more than 20% of your earned amount with bitcoins and all the other cryptos.

Here in my country they are going to create a new law that says that you can just put all your crypto earnings in your bank, but you have to pay 15% of your total earned money, if you dont, you are going to go jail.

It only depends on your country and in your laws.

Hoo really but my question is how they can track? Through bank statement, they will get information where the money comes from. But what if we exchange our bitcoins for cash in local exchange then also they can track? In my country, our governament will not ask how you earn money but the end of the year you must do IT file and pay a normal tax to the governament.

Not too sure but if found out are you at risk of potential larger fines or jail time? Interested on the legality and transparency of operating within the laws opposed to hiding it

[kafeelniazi]

It is funny and ironic that at one side countries are not accepting bitcoin as legal entity and on other side they open a debate regarding tax difficulties for bitcoin. First give cryptos a proper place into the economic structure then they have the right to talk about tax.

[rumexx]

The blockchain which propels Bitcoin is anonymous in nature and it is not centralized which make it very difficult to collect tax from any transaction that is carried out in blockchain.

[MIT2K]

The blockchain which propels Bitcoin is anonymous in nature and it is not centralized which make it very difficult to collect tax from any transaction that is carried out in blockchain.

If you were using a TenX or Centra card i would understand that you are paying tax for a physical product at the time of purchase. But its interesting to what degree law is going to intervene and try to regulate with personal bitcoin income, especially if shops started accepting it directly? Its almost better to keep in the currency digital than convert back to fiat?

[Yakamoto]

Whats the deal with Bitcoin and paying tax? How does it work?

It's mostly situational, really. Countries all have their own frameworks for charging taxes for Bitcoin, if at all. Most of the time they'll care about taxes from Bitcoin in the form of capital gains, so it isn't a struggle if you go with those numbers and pay them their dues, depending on what the various thresholds are for the tax brackets.

There is no one-size-fits-all and it all comes down to country's laws. You have to figure out that part on your own, unless you live in a country where everyone already talks about it.

[Schirer]

Whats the deal with Bitcoin and paying tax? How does it work?

My assumption is that you have to pay the tax from your income associated with BTC ( if you have some) other wise I do not think that any country could have special rules regarding it , since no country as far as i know has defined it as financial commodity.

[Nylelyn]

Laws and regulations with regards to tax varies in each countries. In my country,  Bitcoin currency is not yet rregulated by the government. But i learn from reading that iit is considered as an asset and collection are done once you gain from selling bitcoin.  But if bitcoin demand continue to rise up and prices go up and  the governmenr wod notice that it will be a big addition to their collections,  then definitely our government will create a law to impose a tax from using bitcoin.

[MIT2K]

Laws and regulations with regards to tax varies in each countries. In my country,  Bitcoin currency is not yet rregulated by the government. But i learn from reading that iit is considered as an asset and collection are done once you gain from selling bitcoin.  But if bitcoin demand continue to rise up and prices go up and  the governmenr wod notice that it will be a big addition to their collections,  then definitely our government will create a law to impose a tax from using bitcoin.

booo to Bitcoin tax regulations!

[JuliaEnnyPen]

Bitcoin is not governed or controlled by governments or banks. Hence they don’t have any control over cryptocurrencies.

That said,when you sell your Bitcoin and get fiat currency like US dollar, then you’re liable for taxes as per your country on capital gain.

Considering the growth of Bitcoin, you should only Buy and Hold. Take out in small amounts to avoid taxes.

[Parodium]

It tends to be that you only pay tax once its converted to fiat, you are not liable for taxes whilst hodling. You may in fact be entitled to tax breaks if you lose money when cashing out BTC to fiat.

[bitorama]

it depends on the countries, I think more and more countries will tax bitcoin

[Zentor]

I think most countries just didn`t decided yet how to tax Bitcoin holders properly and how actually identify them. But taxes will be in every country in a few years

[gredisgold88]

it is difficult to put a tax on btc, on purchase bitcoin has two subtance, to seek profit or use btc for transactions, bitcoin can be used for the purchase items or pay services. the taxes imposed by income in btc just a throught reports financial statement to the goverment, so the government can provide and assess taxes to be paid and the tax income arrangement on btc lies with the goverment tax of each country.

[carlos01]

the amount of bitcoin taxes depends on each country as some states allow, in reality, it is a similar financial product.