How do I avoid tax on crypto

[Siopao]

Paying tax is everyone's national and social obligation, I don't think it would be good if you skip paying it and probably you're putting yourself on harm. If your government impose tax on it then better to pay it forward. Here in our country there's no tax implications on bitcoin - none as of the moment. But at the time we convert it to bitcoin and usenit for purchasing then that's yhe time we are paying our tax. However if the government impose tax on btc then I'll do my part.

[1714133579]

1714133579

[Harlot]

Legally the only way you can avoid paying taxes (that are above what you are supposed to pay) is by taking/recording all your transactions. And by taking down I mean recording it and providing supporting evidence. Separate everything on what is income from what is capital gains. As when you get a random audit from the IRS you can provide them supporting evidence that you are paying your taxes right. Also everytime you are receiving Bitcoin you must record it to its U.S. Dollar/ Fiat Currency equivalent during the time you have received it.

[Qartersa]

The only legitimate way I can think of is for you to declare it as expenditures thereby lessening tax obligations. You can do so by gathering all receipts possible, and declare it as something utilized for your business, profession or occupation. Otherwise, you will be held liable for tax evasion which is a heavier offense than that of tax deduction.

Nonetheless, remember that in a system like that of the US, you cannot just do away with your tax obligations. Hence, I suggest you just do what you are ought to do. Always have a backup for them to be able to assess your tax based on the value of your crypto when you realized the same as a profit. It is important for you to have supporting documents to attest to the authenticity of your tax declaration.

[avikz]

I support paying taxes to the government.

If you like being treated like a slave, so be it.

It's not about being slave. It's about being within the system and that is in existence and still being profitable. If I try to be rebellious, the government will simply put me behind the bars. It's too hard for an individual to go against government. Instead it is always better to find a solution. I pay taxes from my profits and keep the rest of it. Both are happy. That should be the conclusion. Government is certainly not taking up 100% of my profits as taxes. It will be a certain percentage and I get to keep the maximum portion of it. That's it! The way you are pointing towards things, it will make 100% of the world population looks like slaves only. 

[RodeoX]

Easy, Just don't pay.  Of course you may go to jail and owe huge amounts of money. So it is a very stupid idea.

[palle11]

If I make money on crypto currencies. How do I avoid as much tax as possible?

First, it is a crime to avoid due tax.

For crypto tax paying, you should not conceive the idea of paying your tax if your country levies on it. If you are caught, you might find yourself in the dark room because it is a crime to avoid carrying out your civil responsibility to your country. By the way, the tax money is "suppose" to be used for development , infrastructure and provision of amenities .

[RodeoX]

If I make money on crypto currencies. How do I avoid as much tax as possible?

Here is a more nuanced answer. While taxes are as sure as death you can lower your tax burden by:

1. Claiming any losses you have to offset gains.

2. Taking full advantage of other offsets like charitable gifts.

4. Looking at tax income brackets and keeping yourself from making enough to get bumped up to a higher bracket. In 2018 a critical level will  be $316,000. Those who make $315K will pay a lot less than those who make $317K

3. Moving to a jurisdiction with lower taxes. I am looking into this since finding out that 9 U.S. states have no capitol gains tax. Of course you still owe the fed. Its' not very practical, but you could also move to Dubai. 

[shi07]

Why do you even consider avoiding of paying taxes out of your bitcoin earnings? If the government imposes a tax regulation on btc then better to take the responsibility of paying it. Tax is every citizen's obligation so if you're thinking of avoiding it be ready of the consequences of it.

[marcbitcoins]

If I make money on crypto currencies. How do I avoid as much tax as possible?

There are lot of countries that Bitcoin is not legal but not ban therefore if you have lot of money for investments just go to the countries and join the trade in that place but if you're country in which you are living has declared Bitcoin as legal for investment then it was regulated that everyone will oblige to pay Bitcoin taxes per regulation policy therefore i'm afraid there is no way for you to avoid this obligation in which it might put you in jail due to tax evasion.

[Tigorss]

Humans living in the present can not be 100% avoid taxes. Especially the consumption tax or Value Added Tax (VAT) is most difficult to avoid because everyone uses the manufactured goods from a piece of cloth used in which there is VAT. Extreme ways to avoid VAT or consumption tax is not to buy or consumption of goods that have tax. Eating and drinking foods and beverages excluding taxable goods, not VAT objects and not local tax objects

[BitHodler]

There are lot of countries that Bitcoin is not legal but not ban therefore if you have lot of money for investments just go to the countries and join the trade in that place but if you're country in which you are living has declared Bitcoin as legal for investment then it was regulated that everyone will oblige to pay Bitcoin taxes per regulation policy therefore i'm afraid there is no way for you to avoid this obligation in which it might put you in jail due to tax evasion.

Bitcoin and basically any other crypto currency requires people to pay tax regardless of the legal status in a specific country. It's not that you can hop to an other country to avoid paying tax.

That only works if the country in question handles a general no tax policy concerning capital gains and whatnot. People forget that crypto value adds up to your fiat wealth, which you need to declare in all honesty.

Without crypto even being explicitly mentioned, it is part of your total wealth, and you need to pay capital gain tax as well. The only thing a legal status can do is change the category crypto fits in.

It's basically what happened in Israel recently. Crypto has been declared a property, which moves Bitcoin into that tax category instead of a more general category that is suitable for various financial products and such.

[Tai Chi Chain]

If I make money on crypto currencies. How do I avoid as much tax as possible?

Never try to dodge federal taxes unless you feel like money is worth more then your freedom (it's not).

Pay the taxes so you can live a stress free life.

No reason being audited 10 years later, when you have a house/car/family, then having it all seized.

Stay clean and fly straight, always.

[Granxis]

Why do you even consider avoiding of paying taxes out of your bitcoin earnings? If the government imposes a tax regulation on btc then better to take the responsibility of paying it. Tax is every citizen's obligation so if you're thinking of avoiding it be ready of the consequences of it.

Do not we have to have fixed income to pay taxes? The crypto money market does not always give us a chance to earn money, and there are times when we have lost money. The State should help us when we have lost money

[darkangel11]

It's not about being slave. It's about being within the system and that is in existence and still being profitable. If I try to be rebellious, the government will simply put me behind the bars. It's too hard for an individual to go against government. Instead it is always better to find a solution. I pay taxes from my profits and keep the rest of it. Both are happy. That should be the conclusion. Government is certainly not taking up 100% of my profits as taxes. It will be a certain percentage and I get to keep the maximum portion of it. That's it! The way you are pointing towards things, it will make 100% of the world population looks like slaves only. 

What if the both aren't happy, because I'm not happy sharing half of my profits with a leech that isn't helping me earn it in any way.
Following your logic if a mosquito sits on your hand you should let it drink. It's not hurting you much, he's not taking 100%, right? It's better solution than having to wave your hand around trying to make it go away. Once it's full it will fly away on its own, never to bother you again.

[JC btc]

It's not about being slave. It's about being within the system and that is in existence and still being profitable. If I try to be rebellious, the government will simply put me behind the bars. It's too hard for an individual to go against government. Instead it is always better to find a solution. I pay taxes from my profits and keep the rest of it. Both are happy. That should be the conclusion. Government is certainly not taking up 100% of my profits as taxes. It will be a certain percentage and I get to keep the maximum portion of it. That's it! The way you are pointing towards things, it will make 100% of the world population looks like slaves only. 

What if the both aren't happy, because I'm not happy sharing half of my profits with a leech that isn't helping me earn it in any way.
Following your logic if a mosquito sits on your hand you should let it drink. It's not hurting you much, he's not taking 100%, right? It's better solution than having to wave your hand around trying to make it go away. Once it's full it will fly away on its own, never to bother you again.

Well who is happy in tax? Well, I thought no one is happy either. We are all not happy it is just that we don't have any choice but it is okay because it is for the security of our government. Let us be honest, although there are many corrupt politicians there are still something that made us proud to become part of that certain country.

[Harlot]

It's not about being slave. It's about being within the system and that is in existence and still being profitable. If I try to be rebellious, the government will simply put me behind the bars. It's too hard for an individual to go against government. Instead it is always better to find a solution. I pay taxes from my profits and keep the rest of it. Both are happy. That should be the conclusion. Government is certainly not taking up 100% of my profits as taxes. It will be a certain percentage and I get to keep the maximum portion of it. That's it! The way you are pointing towards things, it will make 100% of the world population looks like slaves only. 

What if the both aren't happy, because I'm not happy sharing half of my profits with a leech that isn't helping me earn it in any way.
Following your logic if a mosquito sits on your hand you should let it drink. It's not hurting you much, he's not taking 100%, right? It's better solution than having to wave your hand around trying to make it go away. Once it's full it will fly away on its own, never to bother you again.

Well who is happy in tax? Well, I thought no one is happy either. We are all not happy it is just that we don't have any choice but it is okay because it is for the security of our government. Let us be honest, although there are many corrupt politicians there are still something that made us proud to become part of that certain country.

Why do some people here think that the government is a leech trying to sip a part of your money? To my understanding no one is exempted from paying taxes and all of the citizens whether you are a government official or a normal citizen or even a juridical person you must pay your taxes.

Or maybe I am missing out something?
That the concept of Anonymous Currency in Bitcoin make us think that we are exempted or it must be used to take advantage of the government. Well if that is the case then this might be the root of the problem where a lot of us think that earning Bitcoin make us exempted from paying our taxes.

[richminded]

Well who is happy in tax? Well, I thought no one is happy either. We are all not happy it is just that we don't have any choice but it is okay because it is for the security of our government. Let us be honest, although there are many corrupt politicians there are still something that made us proud to become part of that certain country.

Some people might see tax as a waste of money because of corrupt politicians but I'm proud to say that I am a product of a tax, and because of that I got my degree. Yes, we pay too much on tax but try to think the good thing that can happen because of that. Though currently here in my place I'm not paying any taxes but I think it will happen soon and no one can avoid that.

[Zabrielle]

If cryptocurrency is legalized then we are entitle to pay for taxes. Why do we have to avoid taxes? Otherwise the government might seriously ban cryptocurrency then. As of the moment, in my country taxes are not imposed yet. I can’t say bitcoin or other cryptocurrency is Legal already here but so far i did not heard any violent reaction from the government in my country yet, just not yet.

[pixie85]

Why do some people here think that the government is a leech trying to sip a part of your money? To my understanding no one is exempted from paying taxes and all of the citizens whether you are a government official or a normal citizen or even a juridical person you must pay your taxes.

Or maybe I am missing out something?
That the concept of Anonymous Currency in Bitcoin make us think that we are exempted or it must be used to take advantage of the government. Well if that is the case then this might be the root of the problem where a lot of us think that earning Bitcoin make us exempted from paying our taxes.

You think that the people are taking advantage of the government by not paying taxes. I think that the government is taking advantage of the people by making them pay high taxes, too high to be called just and fair. If Someone calls himself your master, tells you to share half of your money with him and threatens to chain you up if you don't, it's rather unfair. If you hide some of your money so that the master doesn't get what he demands it's you that is taking advantage of him. Is that it?

[goaldigger]

Actually , you dont. You cannot escape government and their rules. The best you can do is not declare your profit to avoid getting taxed but i think you know the consequences. Taxes went to different government projects so for me thats okay. On the other hand, some government officials takes an advantage to this system but this will not the reason to blame them all.