bitcoin gain tax seems quite complicated but this seems straighforward

[ggbtctalk000]

WIth so many coins, I think it is quite complicated to tax the the bitcoin gain:
you buy bitcoin in certain amount, then convert to another out of that amount the certain amount.
you move between exchanges and then sell at another exchange. Man, when I moved my stock holdings between two exchanges just once, tax documents were overwhelming. Now I only move cash between my stock brokerage accounts.
If I have to move holdings then I usually sell and buy back and suffer the gap loss but IMO it is worth than dealing with the tax headache. Now with bitcoin, I cant even think about how it is going to be taxed.

So here is my plan for taxation purpose to make it as simply as possible.
But first there is one question? Does tax incur as a result of buy/sell or move in and out the cash (not the coin) out of exchange.

The latter seems far straightforward.
You use exchange A and it is the only place where the exchange between FIAT and coin occurs.
You move cash FIAT into that exchange and buy bitcoin and do whatever you want. Convert to another token buy, sell, HODL, and convert back to bitcoin and sell for cash. YOu move the resulting cash back into your normal account.

Net taxable gain for that year: CASH OUT to FIAT account - CASH IN from FIAT account.

Now there is a question of you sell the bitcoin and keep the cash in the exchange. I know with my proposal, that is not taxable as long as you keep in the exchange. But as soon as you move out that cash into FIAT account, tax implication triggers.

For that purposes of this taken, it also did not consider buying the good over the internet with your bitcoin. But i think that is largely not practicel. You guy some good X (graphics card) for amount 600$ and then demand was rising so high it was selling for 2000$ and then you sold it that price. Will you pay tax on that 1400$? I think it is the same principle here.

[darkangel11]

WIth so many coins, I think it is quite complicated to tax the the bitcoin gain:
you buy bitcoin in certain amount, then convert to another out of that amount the certain amount.

You're not talking about income from BTC trading but cryptocurrency trading in general. Why did you put it in bitcoin discussion when you're asking about altcoins and bitcoin as a whole, not to mention there's a legal section for this?

So here is my plan for taxation purpose to make it as simply as possible.

To make it as simple as possible when your tax year comes to an end you sum up all your cryptocurrencies and check their value in fiat currency that you're using to pay the taxes. Next you subtract it from the money you've used to buy those currencies, or the amount that you held when you've submitted your report for the previous year.

But first there is one question? Does tax incur as a result of buy/sell or move in and out the cash (not the coin) out of exchange.

I'm trading in the Euro zone and most countries here only require you to submit yearly reports on your gains, which means that you're counting the money you've wired from exchanges into your bank accounts.