Bitcoin and not Paying Taxes

[Predator25]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

Well if you will just research about bitcoin, it is not register on the central bank of every country because government aer opposed on this so basically there are no taxes from bitcoin and the people who uses bitcoin doesn't pay tax anymore. And I think that is one of the reasons why government don't want bitcoin in there country.

[Cryptoproff]

Taxes are bad in front but good inside sometimes. The government using these money to improve infrastructure and all the nation facilities of a country.

[Vinalians]

Why do even they catch those people who are using cryptocurrencies? it is just that cryptocurrency is decentralized and it doesn't mean it is not good to do. It is legal in some countries and it is used by many professional people so why do they catch people who uses it.

[BartS]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

This is very simple, you need to pay your taxes, no one likes to pay their due taxes and even if I believe that the tax rate is very high in my country we really do not have a chance to do anything else, I know that there are a lot of people that think that they can use bitcoin to avoid paying taxes, but that is a very bad idea if you do that and the amount of money that you earn through bitcoin is significant then you will have to live the rest of your life always looking over your shoulder worried that at some point the tax authorities are going to catch you and put you in jail.

[suhoy]

If there's no law base in your country about this yet - you probably should worry about that...

[marginal]

yes...Just pay your taxes from every withdrawal, but it can be unrelevant advice, becouse of differences in a laws of different countries, lol

[steelzeppelin]

Federal government does not recognize bitcoin as currency. For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. At what sum total of cash do you need to claim taxes on bitcoin? All of it. The IRS states that even small income such as babysitting should be reported on your taxes. It’s safe to assuming every single dollar you profit on bitcoin is taxable.

It’s important to understand that you are only required to pay taxes on bitcoin when you turn it into cash. This obviously applies when selling your bitcoin at an online exchange or an ATM because you are receiving cash for your bitcoin. However, transactions made for purchasing goods or services is technically realizing a cash value for your bitcoin at the time you spend it. This means you’re required to pay taxes on the cash value of your purchase. This type of transaction is treated as normal income, not capital gains. So if you spend $100 worth of bitcoin to purchase something, you need to claim $100 of additional income on your taxes.

All bitcoin you purchase and hold for less than 1 years time and sold for profit is considered “short term gains” and is taxed as normal income. You will pay your full tax rate for a bitcoin investment under one year. This percentage depends on your normal tax bracket which is based on your income.

Bitcoin purchased and held for longer than 1 year is subject to capital gains tax instead of normal income tax rates. This means that you will be taxed 15% on the total profit from the selling of your bitcoin. If you buy $1000 worth of bitcoin and sell it for $2500, you have a $1500 capital gain which you will pay ~$225 in taxes on.

Be sure to keep your receipts for all your bitcoin transactions and purchases. If you are not sure what price you purchased your bitcoin at, you can always calculate the daily average price for bitcoin on that particular day. Be sure to reach out to a tax professional when possible.

[CASTIEL05]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

In my country, we are obliged to pay our salary taxes. There is a constitutional law and enactment against tax evaders or tax exemplary. At first, I was confused that the crypto enthusiasts are exempted against the law. I don't think that decentralization is a reason why we will not pay our taxes as long as we used crypto in order for as our income salary, it is a must that we pay our tax. Tax is an obligation of a citizen, it is for our economic development.

[Tenderino]

I did not see the video, because prior to watching it I expect a more detailed explanation about what you are talking? And your statement that they will catch you is absolute nonsense, because there are countries in this world where winnings from crypto currencies are tax free if you hold them longer than one year for example!

[Daboy_Lyle]

I ran across this video a while ago on what can happen to you if you don't pay your taxes.  At some point during your Bitcoin career, the cryptocoin will be converted to fiat and that's how they will catch you.


https://www.youtube.com/watch?v=hf2fNEUPjQw

If you're working on a business  you e able to pay taxes.  In somehow bitcoin has only a transactions fee for transferring it.  You don't  need to pay taxes on bitcoin but you need to pay for a fee.