Crypto and Taxes?

[spring07]

This is really interesting as far as i am concerned. Cyrptocurrencies is supposed to be decentralized and without the government regulations, how then is it possible to track my cyrptocurrency earnings and consequently tax me?

[Ailmand]

Hi,
Does anyone have an understanding of how taxes work with cryptocurrency?

I read about capital gains tax, but what if the BTC i have was donated to me at first?

For now, there is no country yet that has imposed any taxes on bitcoin or any activities related to it. However, there are a lot of talks with regards to it because , I think, many countries have already foreseen the big effect that bitcoin would have in the market, and any country, for sure, would want to strike it big when that happens. I have read many write-ups regarding countries aiming to regulate the use of bitcoins or impose taxes on it for government profit. I think this is an inevitable step for some countries to gain control over it, hopefully, it won't be too strict that people would be discouraged to keep on using it.

[emoji00]

Hi,
Does anyone have an understanding of how taxes work with cryptocurrency?

I read about capital gains tax, but what if the BTC i have was donated to me at first?

Depending on your jurisdiction it may vary from 0 to anything, but in general: if you receive a donation or a gift that is in itself subject to taxation, so you´d need to pay at the moment you got them. Also capital gains are taxable as you said in most places.

[Matthewmorris4]

For now i think no taxes for crypto and its environment, this is decentralized system, and not like the centralized banking system
But, it also depends on the regulation of the each country, but since now i didn't heard about country that apply taxes for crypto

[barlo357]

In the first place where or what specific agency goes the taxes? It should be have one specific agency so that we know our taxes goes. And we didn't submit anything like Tax Identification Number .So for now it's so blur.

[AjithBtc]

Majority of the users do trading through the services available. In specific everything is done for bitcoin to altcoins. Very few get into bitcoin to fiat trading, this will cause the taxation to the users who were into this particular form of trading. As more governments were regulating bitcoin, expect taxation for bitcoin similar to other commodities.

[mariangpalad]

Thats insane,to what happened in U.S? decentralized assets are having taxes what the heck is that?

[talinabtc]

If you have a huge amount of crypto profits, consider moving to the Netherlands and paying taxes here for a bit. We have a wealth tax instead of a capital gains tax (around 1%). Wealth tax usually sucks, but in the case of crypto itś pretty sweet

[ALWASA]

Hi,
Does anyone have an understanding of how taxes work with cryptocurrency?

I read about capital gains tax, but what if the BTC i have was donated to me at first?

For now, there is no country yet that has imposed any taxes on bitcoin or any activities related to it. However, there are a lot of talks with regards to it because , I think, many countries have already foreseen the big effect that bitcoin would have in the market, and any country, for sure, would want to strike it big when that happens. I have read many write-ups regarding countries aiming to regulate the use of bitcoins or impose taxes on it for government profit. I think this is an inevitable step for some countries to gain control over it, hopefully, it won't be too strict that people would be discouraged to keep on using it.

I also heard many stories about having a tax for crypto industries because I think the government well somehow be benefited on these knowing that many of the people actually use this from time to time.

[emoji00]

from what I know only US has taxes on bitcoin, US has a complex taxing system, if you are in US better to find a professional accounting. if you are in other places, no need to bother it

Thats not the truth, a lot of countries in Europe like France and Germany are although havin taxes on the win you make with cryptocurrencies

The first person that I spoke about bitcoin got a nice bag of them in 2012. She Hodled long years and what was a large amount became a few millions. For her, it made perfect sense to look for a jurisdiction that was easy on btc taxing and that happened to be Germany.

[emoji00]

If you have a huge amount of crypto profits, consider moving to the Netherlands and paying taxes here for a bit. We have a wealth tax instead of a capital gains tax (around 1%). Wealth tax usually sucks, but in the case of crypto itś pretty sweet

So, how long do you have to live in the Netherlands to be able to pay a reduced tax? I personally do not plan to move as I consider myself a long term hodler, but eventually either or other people I know are interested in knowing more ´bout it.