Explain the income in bitcoin ?

[arcds9]

You have to understand the law of tax of certain countries. Having some btc through different channels like trading, gambling,online marketing etc  can be described as online income which we  used to say. So getting some btc is  not difficult to describe ( if you  dont want to keep it secret where it is illegal ) you can call it your internet money.

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[audaciousbeing]

This is a legal issue no one has been able to answer me about

If you win bitcoin with investment, it's easy to declare

What about bitcoins you earn from jobs  ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?

I will try to put this based on my little understanding of investments and how funds is being earned via several means and at the same time link it to various form of tax within my jurisdiction.

Anything you do to earn money, you're to declare your income because every options you listed there can be likened to social media advertising or say digital advertising which is done on a large scale that some people also establish a company for and they are required to pay their tax on such income derived. However, as an individual, you pay a tax different from what a company would pay. In declaring, you can go the route of either self assessment or wait for government to come after you  depending on your country residence.

[Coffee135]

Your'e right. But in fact (we are working in Eastern Europe) tax service can make little bit differ decision, and here we have practice of income directly from mining forgetting salary in BTC.

Do you have a registered business? If yes then you have to pay taxes on the money you're earning and paying your employees. It's a huge risk to neglect it because as a business you have to write reports and have bills for every payment. You just can't operate without it and the authorities often perform random inspections, so sooner or later they'll come knocking.
If you are a solo miner that's not registered you're safe as long as you don't cash out. You can keep your mined coins as long as you like and be perfectly safe until you move it all to your exchange account because from that moment the coins will become associated with your ID.

In order to avoid paying tax, I use online exchangers. They can be used to send the Fiat on any account without registration. In this case you will not track and you can do any in-store purchase without using your Bank account. It seems to me that bitcoin was conceived in order not to interfere with the government and therefore I consider myself free from tax liabilities.

I haven't seen an online exchange that doesn't require you to verify before allowing you to cash out. Even if such an exchange would exist you're still sending money to a bank account that's in your name. You have to be extremely naive to think that your fiat can't be traced by your government.

I use exchanger which does not require registration. Of course if I send money to my Bank card that I can detect but I do not. I buy everything that I need in the online store. There you can pay by credit card. I send Fiat from your anonymous account once in the store. In this case, I have no way to track.

[kengeorge21]

Income can be tax in many ways, if gains from bitcoin it should be capital gains while the cash/fiat you get from trading bitcoin should be declared as income tax, getting bitcoins directly is quite debatable since its value is too volatile. This kind of questions should be directly ask from tax officer from your country I guess.

[darkangel11]

I haven't seen an online exchange that doesn't require you to verify before allowing you to cash out. Even if such an exchange would exist you're still sending money to a bank account that's in your name. You have to be extremely naive to think that your fiat can't be traced by your government.

I use exchanger which does not require registration. Of course if I send money to my Bank card that I can detect but I do not. I buy everything that I need in the online store. There you can pay by credit card. I send Fiat from your anonymous account once in the store. In this case, I have no way to track.

Care to give us some more info? I haven't encountered an exchange that would allow me to sell BTC for fiat without verification. Nowadays it's hard to find one that allows trading crypto pairs without at least a basic verification by phone. That's because of anti money laundering and anti terrorist laws. In Europe and the USA it's a normal thing.
Also, sending things to your home doesn't make the transaction anonymous anymore, even if you use a fake name.

[Granxis]

In order to avoid paying tax, I use online exchangers. They can be used to send the Fiat on any account without registration. In this case you will not track and you can do any in-store purchase without using your Bank account. It seems to me that bitcoin was conceived in order not to interfere with the government and therefore I consider myself free from tax liabilities.

No one can ask for taxes because of the expense in the store, and bank accounts sometimes have to make a final explanatory statement. It was not my case. But those who transfer Bitcoin in extreme amounts complain too much.

[kimochidesh]

Income declaration from BTC is still not clear in most of the countries, but what I see is that income from campaign or bounties are the reward to your service so it is the active income which you earn which may come under Income generated by delivering services.
And the income which you generate by holding BTC will taxed as per short-term capital gain(if sold within 1 year) or long-term capital gain(if HODL for more than 1 year).
Rest I suggest you to consult a TAX expert, he can guide you better as per your own country tax laws.

[lepricoin]

I think it depends on the country, if bitcoin is declared the official currency, then your income should be declared, otherwise I do not think so.

[Saveplus]

It was decentralized no need to declared our income in bitcoin and they cannot imposed tax on it as long it was not legal in the government no authority can give the rule from it.

[Qartersa]

This is a legal issue no one has been able to answer me about

If you win bitcoin with investment, it's easy to declare

What about bitcoins you earn from jobs  ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?

Yes, I agree it is an income. But you know, each country of jurisdiction has its own rules and regulations as to the declaration of income. So you would have to check on your local/national laws regarding that. I think you would also need to qualify as to whether what you are doing is full-time or that of part-time. Because as for us, if it is only a part-time job, you need not declare anything that you earned out of it.

[Budugbass]

I think to explain it, no need to detail reveal it or to expose it whatever ways you do in earning of incomes from bitcoin. As long as we do not harming to others people and that ways are not really prohibited in the country, to explain it.. I think just simply combine everything in one statement, that is "The Bitcoin Incomes"

[ricky68]

depend if your country regulates bitcoin then you have to declare how you acquire it and pay the necessary taxes to the government

[shantoote]

This is a legal issue no one has been able to answer me about

If you win bitcoin with investment, it's easy to declare

What about bitcoins you earn from jobs  ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?

it is easy they make deal using dollar reference so you will work for 1,000$/month and check the value of dollar /BTC every month .

to be honest this is one of big problem which make cash better for  bounties, regular incomes for helping teams in moderation, etc.

[orions.belt19]

This is a legal issue no one has been able to answer me about

If you win bitcoin with investment, it's easy to declare

What about bitcoins you earn from jobs  ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?

I think its just the same since you did still able to get those coins or bitcoin earnings from a job which you can still declare and I cant see that there would be a problem on that. Want to know if your government is already requiring you to have such declarations? That's too strict though. For now in my state here in my country I don't have much problem regarding on that even though it is already involving huge money but yet taxation on bitcoin earnings isn't still being imposed.

It's the same in my country. Taxation on bitcoin earnings aren't imposed yet although bitcoin is considered legal. There has not been any legislation or specifications made regarding bitcoin income that has been declared by my country. Perhaps as of now, there are no declarations yet. I guess that a problem arises once you exchange you bitcoin to the local currency - there may be the need of taxes for that. Especially if it's a huge amount, you would probably have to declare it as an income.

[ralf2018]

As is known ,some cryptocurrencies have a element of residual income to them, therefore increasing your ‘income’, they pay you dividends in the form of cryptocurrency and you can sell or hold onto this newly produced asset.It can increase your wealth as the price of btc rises, however does not have a direct relation to your income.

[sukamasoto]

depend if your country regulates bitcoin then you have to declare how you acquire it and pay the necessary taxes to the government

My government still not make any regulation yet so when I earn bitcoin, I do not need to pay the tax.
But in 2018, my government start to make a legit regulation for forbid bitcoin usage , it's a shame but it's already become wise decision !

[ApocalypseNow]

If my government will pass a bill that will make everyone that is earning bitcoin to declare all of it then I will. But right now, we are free to earn so I'll just make the most out of it before it happens.

[ace4549]

Bitcoin provide ways to earn income to ease the life of every people in the whole world. They provides a high yield of interest to generate a  huge amount of return on investment in just short period of time

[TIDOVEE]

it is still easy to declare if not for the cases of tax from other peoples view but in a country like mine they may not really care about the tax because they only monitor tax on establishments they can see. i know very soon they may begin to take it serious. looking into your interesting question, i guess that the reason some government are  negating bitcoin. but in short it is a job done. not an illegal business. it can be declared.

[TheKeyLongThumbI]

My country doesn't really treat bitcoin seriously right now. They just warned us to avoid investing on it and doesn't discuss on how many people are earning good or huge incomes with bitcoin so I'm not really obliged to do that.