Bitcoin and not Paying Taxes

[thegamblingbay]

only death and taxes bro

or move somewhere where it's untaxed

[cryptojac17]

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

Bitcoin was introduced to me as a source of  income without paying tax. My friends told my college professor about it being not taxable and my professor reacts like it can not be. He said it is a fraud and illegal,they told him that money can be claimed in banks so it is not illegal, it has an authority from the government but I personally think it needs to be taxed. I guess there is a tax involved when converting it to fiat, correct me if i am wrong.

in my understanding Bitcoin is not taxable in state of being a crypto currency but once you covert into cash in their the taxation will  take place the government will take its part once it is in the bank transaction , just like the remittances of the over seas worker of our country they will send it in form of BTC to the electronic wallet of their love one but once it you will go to BTC service provider to change it into cash their you can pay taxes.

[cr_liev]

Yes, that's a real problem with cryptocurrencies as well. You may be rich judging from your wallet, but you will not be able to cash out your money quickly because you know they will catch you and accuse you of sponsoring terrorism or something (like they do in Ukraine).

[merlyn22]

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

  the video was not available... in my country paying tax from bitcoin earning is not yet implemented... on my own if my government implement that law then there's no reason not to pay taxes. it will help to benefits my country and everyone need to follow the law to prevent being penalies  so no problem on my part.

[cryptbit.man]

I am planning to declare and pay taxes on my profits when I cash out. Generally as long as the value is crypto you do not have to pay taxes. The regulation is country specific so you should do some research on your country's investment taxation rules and figure out how many you should pay if you cash out.

[darkangel11]

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.

Do you really believe that? That's what it's supposed to do, but in reality in most cases it doesn't. Your taxes are funding mansions of the politicians and all their coworkers, pensions for those unwilling to work and so on.
The infrastructure can and is usually being paid from the taxes you pay when owning a vehicle. Road tax, fuel tax, excise, and so on. None of the taxes you pay on your crypto income will end up in your local infrastructure.
 

Bitcoin withdrawal always incur taxes and that is the processing fee in the banks or remittance center you wanted to receive your fiat cash.

Don't withdraw then. Use it to buy the things you need. There will be taxes in there that you'll be unable to avoid anyway, VAT for instance.

Regardless of countries on what I'm talking about, we shouldn't evade taxes because it poses a good thing for us.

If you believe your government and support the way they're spending your money, sure. What if you don't?
 

Now I won't go far by talking about the political corruption going on in some country, but assume that when you pay taxes is like paying the good for your Bitcoins like the internet facility we need to use Bitcoin.

And what if your government doesn't support BTC? It had no part in helping you earn it, it's doing what it can to make it more difficult for you to use it, why would you want to share your profits with them?
I'm not saying you shouldn't and i'm not going to discuss the law, but you should at least be unwilling to do it, instead of clapping and smiling while they're ripping you off.

[ahmad21]

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

It is not being converted to fiat but yes it might end up being taxable but the truth is that we have to pay taxes at the end no matter how much we revolt against the fact. Taxes are the necessity of any economy and without taxes its hard to think of any govt. too so govts. will surely collect taxes from you in one way or the other.

[SixOfFive]

because by paying taxes, could build the country we dwell in, in order for the more advanced countries, and be able to compete with other countries, ...

Agree Taxes are somehow important to run a country in a more effective way. But the fact is how much and how smartly the leaders uses this money in order to develop the nation.
Soon, central authorities of most the countries will came out with the taxes norms on Bitcoin and other crypto-currency. So its better that we should accept this fact in a positive way and prepare ourself to pay taxes on it.

[Capuchin Crypt]

I think that with a little attention, it's not so easy to catch us. Of course, mistakes are not allowed.

[donte872]

I am planning to declare and pay taxes on my profits when I cash out. Generally as long as the value is crypto you do not have to pay taxes. The regulation is country specific so you should do some research on your country's investment taxation rules and figure out how many you should pay if you cash out.

This is a great way to do this, you are taking a serious look at investing in the cryptocurrency market. Make sure the transactions in the cryptocurrency market will not be taxed because it's anonymous and very confidential, no one can verify the identity of the investment account holder. You spend tax on the conversion from crypto to cash is very reasonable and proper.

[MoonsGravity]

From the video it seems as though as long as you pay after getting caught, it's not as bad as I imagined, unless  you don't have the money. But before I thought it automatically ruined your life.

[mx667]

Well, 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!   

Yes that is true. But many people in poor countries tend to think that paying taxes is a very heavy one. It is because many officials are corrupt and increasingly makes the poor suffer. The poor will tend to think of not paying taxes because they think their lives are full of suffering, why they should pay taxes to the government who do not help them? It should be the rich people who pay taxes. And when the poor find Bitcoin as an opportunity, they will surely make the most of it. However, we pay taxes if we can. But if we are less able or not able, we can delay it first.

[DIAH PERMATASARI]

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

if it happens it means bitcoin is legally in the country, because bitcoin is already in tax, but how it might be bitcoin is decentralized, then the government will be difficult to set it

[gambitcoin53]

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.

true, an investor who has a lot of bitcoin in his wallet is not taxable unless he converted it to cash, using legal exchange sites, the tax for that transaction covers the equivalent tax depending on the amount of bitcoin you have converted, if one is trying to frequently converting huge amount of bitcoin, for example 1 bitcoin for that matter, the exchange site which is being logged is monitoring your account, if they see you having those transaction, you will be noticed by the tax people, so better convert your bitcoin not as frequently as possible. especially if your using a single wallet that has multiple transaction which is unusual to remain un-noticed.

[randyg29]

I think it is OK to pay our tax in governments if they legalized it but right now we can say that we don't want to pay our tax even you earn a lot of bitcoin in the past year like here in my country it is not legalized and our government have no rules about bitcoin.

[Ziskinberg]

I think it is OK to pay our tax in governments if they legalized it but right now we can say that we don't want to pay our tax even you earn a lot of bitcoin in the past year like here in my country it is not legalized and our government have no rules about bitcoin.

It's not that it's okay but we are really required to pay taxes as that is our responsibility.
With bitcoin we can avoid paying taxes but we should think of our country, we know that taxes are its lifeblood so if you progress you share it for other people to benefit.

[amih]

which I know is applicable when I redeem my bitcoin to be a USD on a local bitcoin wallet in my country other than that there is a few bunches of money I save in a local bitcoin wallet account in my country when I am going to do a delivery or transfer USD which I have to the account that is in the bank that exists in my country. so I think for now there are some pieces that I think it is just like a tax I have to give. and I think if the government is going to make bitcoin as a legitimate virtual financial form then how many more percent should I spend on taxation of course if it's going to be a tax deduction again of course this would be very detrimental to people who have bitcoin assets . so to solve this problem in my opinion there should be a division of some percent for the taxation between the local bitcoin wallet account manager also with the government so that this does not happen sort of thing that will harm each other.

[dvillier]

Not paying assessment dependably end severely, it is simply matter of time before you get captured. Rely upon nation's laws you can run free with not paying assessment for quite a while, on the off chance that you know how. In any case, that goes just until the point when you begin procuring genuine cash, that you can not stow away. Regardless of whether you procure it with bitcoin it is take gaining and you would need to pay charge, unless it is distinctive in your nation. In any case, regardless you would need to move that coins into fiat cash, on the grounds that only one out of every odd place acknowledge bitcoin as method for installment, and that is one all the more thing that would be end of your not paying assessments.

[Pikachushka101]

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

When converting by itself, you have to pay, and so far there is no regulation for what to pay for the air. That's when there will be control over the crypto currency, then of course it will not be very sweet for us.

[The_Dark_Knight]

I'm not a big fan of taxes, but at the moment you put any fiat in your hands, they know it and you must pay the taxes. Or you could end up in one very unpleasant spot.

At least in most EU places taxes are still 10-12% like for forex trading profits.

This is inevitable, the moment you convert bitcoin to fiat the government will know and they do not care where you got that money what they care about is to get their money, if you comply then there will not be a problem but if you do not then a big problem is coming your way and believe me you do not want to have problems with any tax agency especially the IRS if you are an American citizen.