Is Taxing Bitcoins Possible?

[Vin183~]

I do not know but it all depends on the policy of the government of each country but should be less fitco bitcoin taxable charges.

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[tapaibuccok]

I am not an expert in taxation but I think it is impossible, because the government can not calculate how many bitcoins are owned by its citizens, unless they have access to calculate and of course have to cooperate with the bank and exchange

[Nyenyepogi]

I am prwtty sure no one could taxate cryptocurrencies such as bitcoins because the users are anonymous and hard to be traced down. furthermore it is not a government property or project so I couldn't think of any good reason to tax bitcoins.

[kevin go]

Taxes are the main source of income for many governments. Bitcoin is a peer to peer operating decentralized currency. So it is difficult for a government to find bitcoin users and tax their income. All bitcoin transactions are autonomous in nature; no third party intervention is possible. Bitcoin investor or bitcoin user can come under tax radar only when they convert their bitcoins into fiat currency. At this time government can impose taxes on the income generated from bitcoin currency. In India and USA governments have already started taxing income from bitcoin currency, irrespective of its legal status in their region. So it is recommended to pay tax while converting bitcoin`s.

[Carlsen]

There is no doubt for me that a tax will come.
I suppose that for every transaction of bitcoin into fiat, maybe even for every exchange amongst crypto currencies, there will be a tax on the profit you make by it.
The exchanges have already started to identify their users, and at a certain point they will have to work together with the tax offices of each nation that contacts them.

[Amelial]

It's possible government will charge a tax for btc. But it's good, meaning government has accept btc foe economy and business.

[AliMan]

It's possible government will charge a tax for btc. But it's good, meaning government has accept btc foe economy and business.

It's a thought I've been thinking about lately. I think it's kinda hard. I think that's one reason why bitcoin system was made to be decentralized and transactions untraceable. It's one strength of cryptocurrencies. Government will have a hard time charging taxes on untraceable and anonymous transactions.

[investerS]

Sorry I'm a new person in bitcoin world, what is an IGR? I do not understand, I hope you as a thread maker can tell me about IGR, I am very curious.

IGR only means internal generated revenue,its not a bitcoin term.

[darrly]

As government adopts into the digital world of currencies. They have two options, either ban it or tax it. It would be unprofitable for them to ban it so chances are they are goin to tax it. I think its not impossible to trace it, its just time consuming and very hard to track but possible. Also, in this time, we still need to convert it to fiat before going on a transaction because not all stores accept bitcoin as payment so conversion can be taxed. Im not an expert so i can really say.

[cryptoSchultz18]

South Korea seems to be having, and according to the rumors it may be quite possible. The exchanges just share your info and you are easily followed by the authorities.

[arrmia11]

If the government will adopt and engage digital currencies, it is not possible for them to tax bitcoin. And I think that it would be okay for as long as they would not interfere with the holdings of each bitcoiners. And for as long as they would not ban that because it is the right of every person who would like to have bitcoin for their own.

[psi1000]

Depends...if exchange have to say info about subscrivers, force by government

[cryptopolus]

Most of the countries all have taxation rules for cryptocurrencies and the gains you make through trading them. Its just how they will enforce it? The bureaus are not prepared to deal with such a huge information flow yet, but its just question of time.

[Maxson]

It is already being taxed, come to thinks of it the internet services,block chain fee transaction are tax goten for companies the that has those servers.

[pey]

I think it depends, it may be both possible and impossible. But if taxer want you to give your taxes related to bitcoin, you may have to show your all transactions?

[GalahadSeika]

There may be a slight chance in taxing bitcoin but that would take so much work just to track and tax one person also bitcoin transactions happen worldwide I dont know if they can create a program so perfect to track and tax every transaction made who knows... but I want you to know it is possible with the technology in our time it can be just like when bitcoin is impossible now it is. Specially if your government patronizes crypto currencies tax can be imposed.

[micloop]

I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.

In my country they are already putting some tax into capital appreciation, around 15%, wich is like income tax. But I don't know if is possible tax it before you take the money of it. That would be so rude! Thanks God  it won't be possible.

[loengrinm]

In my counties, Bitcoins are already taxable. There are huge taxes on Bitcoins and it may increase in future.

[Aderiho Bitjones]

I think it's possible to do it, but it's extremely difficult and it's very expensive. When a person submits his income. That state will impose a certain tax. And here it is very difficult to know how many bitcoins a person has. Development that with the help of exchanges

[RonJohannson]

If you're not an active trader, can't you just track all of your transactions to show the government that you're a clean transactor?  I'd HIGHLY recommend keeping a handle on all of your transactions for tax time, the IRS is going to come knocking any time you show a huge gain that sticks out like a sore thumb. 

In terms of laundering don't even bother.  It is never worth it to launder.  whatever gain you can make by avoiding taxes will be negated 10x over if you have to deal with the government.  I remember one time I got audited for one simple stock transaction where I made something like $3k, I was sending snail mail correspondence back and forth to the IRS for months. It was an error that THEY made, and it was just $3k, but they were painful to deal with.  Play it straight my friends, always.