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Author Topic: Has anyone sold BTC won here in sig campaigns? how does tax work?  (Read 425 times)
Lancusters
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January 25, 2018, 09:19:44 AM
 #81

Bitcoins earned from signature campaigns and bounties count as ordinary income and they don't qualify for lower tax rates as capital gains. But then, the most important question is whether we should pay tax on those coins which are still in our wallet or not. Ideally, I would pay taxes only on those coins which I sold for fiat. But if Bitcoin is ordinary income, then we need to pay tax on all our coins, right?

Bitcoin is not an ordinary income because you're unable to directly cash it out from your wallet. If I could pay my taxes in Bitcoin I'd gladly do so directly, but if i'm forced to use an exchange to convert to fiat and pay fees along the way, no thank you. Nobody will make me pay taxes from tokens that are lying on some address without my name on it and that I can't spend on anything in my country but have to use an exchange first. Next thing they'll make us pay taxes for tokens earned in computer games just because theoretically we can exchange them to money on ebay.

Whether you like it or not, the government want you to pay taxes on your signature campaign earnings and airdrop tokens. With each passing day, they are eliminating loopholes which can be used by crypto-users to avoid taxes. Very soon, we will be required to give details of our crypto-holdings. If we hide our holdings, then they will proceed with tax evasion charges.
It seems to me that you're oversimplifying the situation. The government is not interested in our taxes. They are concerned about the level of freedom which allows for the use of cryptocurrencies. I am sure that they have set for themselves the task of a complete ban on the use of cryptocurrencies. Paying taxes is only a formal reason to fight with cryptocurrency. Very soon we will understand but will be late. Now need to create the conditions for the cryptocurrency can be used directly without exchanging for Fiat.

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jhongzjhong
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January 25, 2018, 10:01:44 AM
 #82

Bitcoins earned from signature campaigns and bounties count as ordinary income and they don't qualify for lower tax rates as capital gains. But then, the most important question is whether we should pay tax on those coins which are still in our wallet or not. Ideally, I would pay taxes only on those coins which I sold for fiat. But if Bitcoin is ordinary income, then we need to pay tax on all our coins, right?

Bitcoin is not an ordinary income because you're unable to directly cash it out from your wallet. If I could pay my taxes in Bitcoin I'd gladly do so directly, but if i'm forced to use an exchange to convert to fiat and pay fees along the way, no thank you. Nobody will make me pay taxes from tokens that are lying on some address without my name on it and that I can't spend on anything in my country but have to use an exchange first. Next thing they'll make us pay taxes for tokens earned in computer games just because theoretically we can exchange them to money on ebay.

Whether you like it or not, the government want you to pay taxes on your signature campaign earnings and airdrop tokens. With each passing day, they are eliminating loopholes which can be used by crypto-users to avoid taxes. Very soon, we will be required to give details of our crypto-holdings. If we hide our holdings, then they will proceed with tax evasion charges.
It seems to me that you're oversimplifying the situation. The government is not interested in our taxes. They are concerned about the level of freedom which allows for the use of cryptocurrencies. I am sure that they have set for themselves the task of a complete ban on the use of cryptocurrencies. Paying taxes is only a formal reason to fight with cryptocurrency. Very soon we will understand but will be late. Now need to create the conditions for the cryptocurrency can be used directly without exchanging for Fiat.
Yes our local governments did not forced us to pay taxes on our bitcoin have from signature campaign in our country because they have nothing to do with crypto currencies. Besides now some banks of other countries and governments recognized bitcoin as a digital currencies that one of the assest of source of income. For me when you pay taxes when are going to cash out your bitcoin and covert to fiat when you cash out there's have a transaction fees on remittances or banks that's our taxes i think.

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January 25, 2018, 08:46:20 PM
 #83

Whether you like it or not, the government want you to pay taxes on your signature campaign earnings and airdrop tokens. With each passing day, they are eliminating loopholes which can be used by crypto-users to avoid taxes. Very soon, we will be required to give details of our crypto-holdings. If we hide our holdings, then they will proceed with tax evasion charges.

And how would they do it according to you. For instance the government can say they require all people to pay taxes on porn and declare how much porn they're watching a day. It would be as ridiculous as asking us to declare our cryptocurrency holdings, reveal all our addresses and pay yearly tax on coins that are in our wallets,
It would not only be a futile attempt, but also an enormous waste of resources on their part. And of course it would be against the law in most places because you can't require people to pay taxes on their whole wealth. If you have gold or jewelry you aren't obliged to calculate its value every year and pay a tax if it happened to gain some.
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January 26, 2018, 01:28:13 AM
 #84

Whether you like it or not, the government want you to pay taxes on your signature campaign earnings and airdrop tokens. With each passing day, they are eliminating loopholes which can be used by crypto-users to avoid taxes. Very soon, we will be required to give details of our crypto-holdings. If we hide our holdings, then they will proceed with tax evasion charges.

What is the deal with airdrops and tax? Presumably you have to move or trade them to be liable for tax.

I don't see how anyone can be liable for them unless they're provably utilising them somehow. And there are now so many I assume the vast majority won't ever touch them.

If I got some tax demand for a fork I hadn't redeemed I'd post them the old private keys and tell 'em to fucking sell it themselves. 

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January 26, 2018, 10:10:53 AM
 #85

In the future I would like to buy some property with my BTC once it's worth a lot. Even small amounts made on signature campaigns in here could be worth a lot and may I want to diversify into real state in say 5 years or so.

I was wondering how would this be done? Im scared because we get daily news of any bank account that has to do with Bitcoin being frozen. I wouldn't like to be treated a criminal when I obtained my Bitcoin posting here... any help?
Which country are you from? Huge amount is really questionable to cashout especially if the exchange are regulated. Just provide the necessary proof that you accumulate your money through sig campaigns where you worked for years and not because you are connected in illegal activities.

I didnt encounter any problem converting my bitcoins to fiat directly to my bank account, I think it depends on the place where you are on how they deal in situation with high transactions.

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January 26, 2018, 08:12:15 PM
 #86

Whether you like it or not, the government want you to pay taxes on your signature campaign earnings and airdrop tokens. With each passing day, they are eliminating loopholes which can be used by crypto-users to avoid taxes. Very soon, we will be required to give details of our crypto-holdings. If we hide our holdings, then they will proceed with tax evasion charges.

What is the deal with airdrops and tax? Presumably you have to move or trade them to be liable for tax.

I don't see how anyone can be liable for them unless they're provably utilising them somehow. And there are now so many I assume the vast majority won't ever touch them.

If I got some tax demand for a fork I hadn't redeemed I'd post them the old private keys and tell 'em to fucking sell it themselves. 

Yep it only gets even more ridiculous when you factor in the forks.

We have money that we don't even know that we own, because there are forks all the time, so if you have 10 BTC, you have also 10 BTC worth of whatever other new fork of the hour that someone did and you are supposed to report these too, and reporting your actual BTC is already a problem if like I said before you have some mixed inputs in a bitcoin mixer from years ago when you did some testing, and you have some missing trading history due dead exchanges... it becomes a nightmare that keeps growing as your transaction history is the same on another different forked blockchain which would need you to move all of your BTC into other BTC addresses before accessing the forked coins.. it gievs me an hadache to even begin to think about ordering all of my transactions, forks, altcoin tradings... it's hell really. Fuck, I just wanted to buy a god damn house in a couple of years, looks like im going to have problems with it. We'll see what I can do about it. Im ok with paying taxes, but im not ok with the government stealing half of my earnings because they decide there isn't enough proof that I obtained them posting in here, trading altcoins in Mintpal or selling drugs, it's not fair, I worked hard for all of my coins and I did it all legal, I want my house.
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February 12, 2018, 06:20:42 PM
 #87

In the future I would like to buy some property with my BTC once it's worth a lot. Even small amounts made on signature campaigns in here could be worth a lot and may I want to diversify into real state in say 5 years or so.

I was wondering how would this be done? Im scared because we get daily news of any bank account that has to do with Bitcoin being frozen. I wouldn't like to be treated a criminal when I obtained my Bitcoin posting here... any help?

cashouting huge amount of money everyday will become suspecios. but if you can prove where your money came from then nothing to worries. the government cannot forced you to pay some tax from the money you earn in signature campaign they are concern only about money laundering. if your country is open minded about btc then prove your hardwork so that you can freely buy property without fear.

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February 22, 2018, 04:57:41 PM
 #88

In the future I would like to buy some property with my BTC once it's worth a lot. Even small amounts made on signature campaigns in here could be worth a lot and may I want to diversify into real state in say 5 years or so.

I was wondering how would this be done? Im scared because we get daily news of any bank account that has to do with Bitcoin being frozen. I wouldn't like to be treated a criminal when I obtained my Bitcoin posting here... any help?

cashouting huge amount of money everyday will become suspecios. but if you can prove where your money came from then nothing to worries. the government cannot forced you to pay some tax from the money you earn in signature campaign they are concern only about money laundering. if your country is open minded about btc then prove your hardwork so that you can freely buy property without fear.

Like I said before, this is easier said than done.

Bitcoin is too new, earning income with Bitcoin is too new. There are no precedents that I know off. Show me someone cashing out $10,000+ worth of signature campaign gains, and explain me how to the process went (and say where are you from too). Otherwise you are taking a risk because you don't know what will happen. You don't know what they will ask for.

And don't get me started if you mixed of your coins, or you lost some trading history because stupid exchanges are now dead (Cryptsy, Mintpal, etc)
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