Taxes on bitcoin?

[Sirbenjamin]

Is it possible that i have to pay taxes on my Bitcoin in the future?

[bbymi]

Is it possible that i have to pay taxes on my Bitcoin in the future?

I doubt it, since btc is decentralized, who would be able to monitor the exact amount to tax? Will you as a user willingly divulge all your crypto assets if there is no way for them to check if it's true or not? You can safely say that you don't have any and they will never know. They can't force you to turn over your wallet,  coz of your right to property, privacy etc unless you're a criminal

[mayo2u]

Is it possible that i have to pay taxes on my Bitcoin in the future?

[/quote

I doubt it, since btc is decentralized, who would be able to monitor the exact amount to tax? Will you as a user willingly divulge all your crypto assets if there is no way for them to check if it's true or not? You can safely say that you don't have any and they will never know. They can't force you to turn over your wallet,  coz of your right to property, privacy etc unless you're a criminal

You are massively underestimating the ability of governments to track your investments and your income. How did you get your crypto? Did you spend fiat to get it?

Then did you buy things with crypto? This is trackable.

Unless you put in only a few thousand dollars and smoke all your earnings and have a day job which pays the bills you will be in for a rude awakening.

To not be in the cross hairs of the IRS you will have to, for all intents and purposes, be living off the grid.

[TheKing999]

Don't think so mate. Bitcoin is a cryto currency which is still out of government control.  I don't think they will able to control it in future.  So tax on bitcoin  is unusual

[mk4]

This I think completely depends in the country you're in. If the country you're in pretty much doesn't give a crap about bitcoin and cryptocurrencies in general then good for you. There are some countries though that I think requires their people to report capital gains with their cryptocurrencies (correct me if I'm wrong); especially when you're using services like Coinbase whereas your purchases and sells are easily trackable.

[BitNaija]

This I think completely depends in the country you're in. If the country you're in pretty much doesn't give a crap about bitcoin and cryptocurrencies in general then good for you. There are some countries though that I think requires their people to report capital gains with their cryptocurrencies (correct me if I'm wrong); especially when you're using services like Coinbase whereas your purchases and sells are easily trackable.

Yes. As time goes on, I see governments finding ways to gather information on how to impose tax on bitcoin. But the easier way is when you convert your bitcoin to fiat currency, there is no way your spending or income will not be noticed hence taxed.

[kojoannan]

I don't think it will be easy for government to trace bitcoins transactions to its owners to force them to pay taxes.

[OriginTrain]

You'd need to pay capital gains tax when withdrawing the bitcoin into fiat, depending upon your country's rules and regulations.

[uberproteam]

bitcoins might be treated as securities in future so you can pay capital gains tax on securities. May be in future..

[dlhezter]

we all dont know about this, because as of now there are no taxes related in bitcoin in my country,its only a transaction fee that they took, but for sure sooner or later governments will implement taxes in our precious bitcoin transactions, mostly for those country that has own bitcoin wallet exchanges.

[Picopus]

The taxes you have to pay for your Bitcoin or other cryptocurrency differs from Country to country.
The norm in EU is that there are no Taxes on Bitcoin yet, but countries like "Norway" re-visited the Bitcoin tax statement and made their own bitcoin tax.
So in Norway you will have to tax your gains on Bitcoin like any other currency. (20-30% of your gains)
Every year you will have to deliver a yearly report of how much you value you own to the state and how much you have traded.
If they ask for it you will also have to deliver a transaction history that matches this value.


In other countries like Netherlands you have no Tax on bitcoin, yet. I believe we will all pay taxes on Crypto in the future. The point of crypto is not to dodge tax, but to get faster, cheaper, private and a economy free of government influence.


How a country is going to tax cryptocurrency when you no longer will have to turn it into fiat is still uncertain, but my grandfather told me that there are 2 certanties in life. Death and Tax. (Hope this helps)

[mayo2u]

we all dont know about this, because as of now there are no taxes related in bitcoin in my country,its only a transaction fee that they took, but for sure sooner or later governments will implement taxes in our precious bitcoin transactions, mostly for those country that has own bitcoin wallet exchanges.

Some pertinent information regarding the US Tax Code
https://www.irs.gov/pub/irs-drop/n-14-21.pdf


Q-7: What type of gain or loss does a taxpayer realize on the sale or exchange of
virtual currency?
A-7: The character of the gain or loss generally depends on whether the virtual
currency is a capital asset in the hands of the taxpayer. A taxpayer generally realizes
capital gain or loss on the sale or exchange of virtual currency that is a capital asset in
the hands of the taxpayer. For example, stocks, bonds, and other investment property
are generally capital assets. A taxpayer generally realizes ordinary gain or loss on the
sale or exchange of virtual currency that is not a capital asset in the hands of the
taxpayer. Inventory and other property held mainly for sale to customers in a trade or
business are examples of property that is not a capital asset. See Publication 544 for
more information about capital assets and the character of gain or loss.

Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer
resources to validate Bitcoin transactions and maintain the public Bitcoin
transaction ledger) realize gross income upon receipt of the virtual currency
resulting from those activities?
A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value
of the virtual currency as of the date of receipt is includible in gross income. See
Publication 525, Taxable and Nontaxable Income, for more information on taxable
income.

[apoorvlathey]

Bitcoin is not yet recognised as a legal currency in most countries, so you don't have to pay taxes if you receive bitcoins. However, whenever there is fiat involved, say you sold your btc to usd, bitcoin being an asset, then you need to pay taxes on the profits made.
Also, it varies country by country so you may need to consult your countries laws for 100% surety.

[golek upo]

I think it will not be possible. because if bitcoin is taxed, then what I'm wondering is on what basis?

[bakul idu]

I think it will not be possible. because if bitcoin is taxed, then what I'm wondering is on what basis?

Yes, I agree, bitcoin will not be taxed. because, until this time, many countries are yet to acknowledge bitcoin.

[mirte86]

I think in the future yes, they will have control because banks are also working together with crypto's...and more and more people will use it. So they will tax us.

[COTInetwork]

If you just store your bitcoin on a wallet you won't be taxed now or anytime soon. However when using your bitcoin to say convert some or all to fiat money you could be taxed or be required by law to file the profits made from doing this. This varies per country. For example in New York you require a license to buy or store bitcoin. Such a license does not come cheap.

[Mayorlopez215]

Is it possible that i have to pay taxes on my Bitcoin in the future?

The answer is no, because as bitcoin is decentralized and  no one control it.

[mayo2u]

Is it possible that i have to pay taxes on my Bitcoin in the future?

The answer is no, because as bitcoin is decentralized and  no one control it.

Don't put out false information. Here in the US you most certainly will have to pay taxes on your profits. The only question is how these profits are calculated.

[pailwrevious]

Do yourself a favor and move to Denmark. There is currently no tax on gains from holding cryptocurrencies like BTC etc. However, those rules might change at any point in time which will most likely be when the government discovers just how much money they are missing out on in taxing these currencies. In Denmark there is tax on basically everything. Butter, power, gasoline, nuts and chocolate, sparkling water and list is basically endless.