Bitcoin and not Paying Taxes

[MrBigHang]

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

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[Bloomie]

You should always pay your taxes, especially if you're in a country that cracks down on that sort of thing (US for example). That kind of thing is no joke. That's how they got Capone.

I would say you should handle it like any other investment. Treat it as either a capital gain or a capital loss. Offset the gain against your basis and pay the taxes on that whenever it's due. Some of the exchanges like Coinbase give you a history log of all your transactions. I would take that log at the end of each year and do the math on your profit or loss, and that's your taxable gain.

[fachant]

If a country requires payment from bitcoin profits, then there is no way out. You have to pay tax or it will end badly.

[bib24]

Since their is no third-party related to bitcoin no one can trace your transactions but the user and the receiver only, therefore they cannot apply tax. However if we change our bitcoin to fiat money to spend, its the time tax comes in. Maybe in future if bitcoin can be legalized then government might implement tax for every use of it.

[salterious]

He looks like he is living quite well  but nonetheless it begs to reason you gotta play the game that is setup because if you don't you will have a hard time accessing funds and that is the name of the game nowadays! I once thought about skipping too but it makes more sense to give and then make your noise after the fact, legally.

[darkangel11]

He looks like he is living quite well  but nonetheless it begs to reason you gotta play the game that is setup because if you don't you will have a hard time accessing funds and that is the name of the game nowadays! I once thought about skipping too but it makes more sense to give and then make your noise after the fact, legally.

That's correct. The guy looks like he's sleeping on money. He even said in the video that he had spent 100k USD on that year. If you're running a business that is bringing you over 100k USD a year and all that money goes through your bank account you simply can't avoid paying taxes. Either you go the legal way through banks or you use cryptocurrencies, gift cards and cash and make sure there's very little money being moved the traceable route.

[cybersofts]

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

You should always pay your taxes, especially if you're in a country that cracks down on that sort of thing (US for example). That kind of thing is no joke. That's how they got Capone.

I would say you should handle it like any other investment. Treat it as either a capital gain or a capital loss. Offset the gain against your basis and pay the taxes on that whenever it's due. Some of the exchanges like Coinbase give you a history log of all your transactions. I would take that log at the end of each year and do the math on your profit or loss, and that's your taxable gain.

I see no reason why people don't like paying their taxes. it is always very good to pay your taxes because it helps a lot in building your country's economy. In some countries government use tax money to do new projects such as building new schools, roads, and hospitals. I don't know about you but for me, i see nothing wrong with paying tax at all. I think it's good to pay your tax if you love your country because that way you can help your country move forward.  

If you love your country pay your tax, period!
Some guys here are even lucky their government is doing something good to help them. You should be thanking God for that.

[inlovewith]

When you convert it to fiat, you pay tax on what you convert it. You don't have to pay on the Bitcoins you have.

[Cryptophorus Columbus]

The matter is still very unclear, and - at least in Europe - we're waiting for Bruxelles decisions.
Btw, bitcoin itself it's not "money" (it's just as points in a videogame) so it can't be taxed.
When you convert it in fiat money, sure governments will find a way to steal something, but for now there is a lot of space for... uh... creative movement :-)

[avikz]

Tax payment is a necessity and No one should ignore that. Doesn't matter whether you are earning from your job or from Cryptocurrency. I always include my earning from Cryptocurrency in to my tax information sheet and pay appropriate taxes. If you have done that, at least you will have the ground ready for talking with the tax authorities if they come looking for you. I always keep my tax records updated with my crypto earnings so that my tax authority can't call me a tax evader. At least I will have something to counter them.

[Sadlife]

This is the great thing about bitcoin it's decentralization. No one controls it,  no one owns it and no third party can trace your transactions or how many bitcoin's you own. But if you want to exchange it to fiat of course there are some fees to pay depends on the amount that your converting you might pay a lot. If bitcoin gets legalized then the government could implement some rules about this, if they could.

[CyberKuro]

We don't have to worry about taxes for the cryptocurrency, at least for now. Because most countries do not have regulation about paying taxes if citizens convert bitcoin to fiat currency, unless you live in the US then you have to pay tax for capital gains because IRS said so.
There is plenty of room to avoid bitcoin taxes for Americans such as send bitcoin to your family or friend in Europe to convert bitcoin and then transfer the money through banks or remittance, but no need to avoid taxes obviously, just pay it.

[MrBigHang]

Tax payment is a necessity and No one should ignore that. Doesn't matter whether you are earning from your job or from Cryptocurrency. I always include my earning from Cryptocurrency in to my tax information sheet and pay appropriate taxes. If you have done that, at least you will have the ground ready for talking with the tax authorities if they come looking for you. I always keep my tax records updated with my crypto earnings so that my tax authority can't call me a tax evader. At least I will have something to counter them.

I'm new to this as I just started last year.  Do we have to convert all of our cryptos to dollar value and report?  Do I have to declare how much crypto I own?  Do I only take taxes out when I sell?  I've sold a lot on Coinbase base but always bought back in.  Do I pay tax on each sale or the total I've made?

[ASHLIUSZ]

Yes, this happens. In specific bitcoin has been taxed over different countries adding it to the commodities list or as an asset similar to that of gold. Nowadays taxation is done at some point of converting to real cash, there are people who make trade and keep hold in terms of bitcoin. Uses the same finding people accepting bitcoin for what is required to avoid taxation.

[filharvey]

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

Just simple.We could just sell our bitcoins with persons face to face in cash instead of using bank transfers.Until you use counter sales of bitcoins,there is no fear of being taxed.

Even i have an idea of selling my bitcoins to my friend in abrad and ask him to send cash directly to my bank account.By this way also,we could avoid our bitcoin earnings getting taxed.

[sofi@]

In my country government proposes that those who earn $300 and below per month will be exempt from income tax and as far as I know majority of our people who join bitcoin here do not meet this standard amount of income so whether we earn additional amount from bitcoin we are still exempted from paying tax and besides there is VAT on our purchases so government still gets taxes out of our earnings

[Bloomie]

We don't have to worry about taxes for the cryptocurrency, at least for now. Because most countries do not have regulation about paying taxes if citizens convert bitcoin to fiat currency, unless you live in the US then you have to pay tax for capital gains because IRS said so.
There is plenty of room to avoid bitcoin taxes for Americans such as send bitcoin to your family or friend in Europe to convert bitcoin and then transfer the money through banks or remittance, but no need to avoid taxes obviously, just pay it.

Depends how much you move that way, but if it's high enough you still have to pay gift tax. If say you receive 15 or 20k from a relative for no reason, that's taxable money. One way or another you will pay tax. This is why people hire accountants, they try to minimize the tax you pay, but you still pay.

[dothebeats]

It already has occurred to me that one way or another the exchanges that we're using to exchange cash for bitcoin would likely be our mortal enemies since they'd be the ones who would submit all our transaction history with them if in case the government pressures them to. Also, the government would always have their way to peep into your account details and spending history even though you are using bitcoins.

Not paying taxes only becomes illegal if the government declared that any gains made from bitcoin should be declared and are subject to tax. However if there are no rulings or law regarding that matter, you are safe even if they sniff into your private accounts with the exchanges.

[MrBigHang]

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

Just simple.We could just sell our bitcoins with persons face to face in cash instead of using bank transfers.

No way, you go to jail for that.  You need a money transit license to buy or sell American dollars.  FBI has jailed multiple people over this already.  One example is below.  Google search and you will find more.




I am unable to post links so google search the headline below.

Three bitcoin traders arrested in Florida on money-laundering charges

[intoy_victor]

You have to pay first your taxes even small taxes you should pay it.

In our country all business man, government employee and even athletes are need to pay there taxes. How much more if your earned million and you have luxurious house and cars.