Should we pay taxes on Bitcoin?

[Andrew S]

Perhaps in the future, when the government takes control into its hands, then it will be right to pay taxes, but now this is absurd.

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[jbjoyce]

Bitcoin was created to liberate us from corrupt governments and corporations that serve their own needs. The coinbase transaction in the genesis block, mined by Satoshi Nakamoto contained: "The Times 03/Jan/2009 Chancellor on brink of second bailout for bank". What is your opinion on paying taxes on Bitcoin? The government most likely doesn't know my bitcoin address. Even if they do find it, based on the transactions made from my bank account to exchanges, I could simply say someone stole the private key from me. Many of the posts here asking for help on filing taxes on their Bitcoin make no sense to me. We have a system that allows complete financial freedom and yet people choose to pay their taxes from it and support crooked governments.

We should pay our taxes if this is required to pay,we need to pay tax because this is our obligation,taxes is for the government,for the street children,public hospital and public school for the poor people who can't afford the private hospital and school,taxes is for the progress of our country.

[LeGaulois]

Perhaps in the future, when the government takes control into its hands, then it will be right to pay taxes, but now this is absurd.

How paying taxes is something absurd? Citizens want to get free school, free everything but don't want to pay a tax? The same people who complain about the system in their country. We have to participate in the system because as far as I know money still not grows on trees.

It's funny too, to see people agree with crypto regulations but not to pay crypto taxes. Well you asked regulations so here we go...

[maarx]

It depends upon the government of the country, if your government collects tax for bitcoin, then one needs to obey and to pay the same. The countries who have not yet accepted bitcoin, do not need the citizens to pay the tax for bicoin earnings. I would say its good practice to pay tax to the government who accepted bitcoin. This would seriously encourage other countries to look into the options to accept Bitcion and other crypto currencies.

[deisik]

Bitcoin was created to liberate us from corrupt governments and corporations that serve their own needs. The coinbase transaction in the genesis block, mined by Satoshi Nakamoto contained: "The Times 03/Jan/2009 Chancellor on brink of second bailout for bank". What is your opinion on paying taxes on Bitcoin? The government most likely doesn't know my bitcoin address. Even if they do find it, based on the transactions made from my bank account to exchanges, I could simply say someone stole the private key from me. Many of the posts here asking for help on filing taxes on their Bitcoin make no sense to me. We have a system that allows complete financial freedom and yet people choose to pay their taxes from it and support crooked governments.

Saying that likely won't help you as you will have to prove it one way or another that the key was actually stolen. That would be a whole story worthy of a separate thread in Legal. Now to your point. People pay taxes not because they are willing to do so (while some are but they are in absolute minority and beyond the scope of this post). They simply don't have choice. Yes, they can choose not pay taxes but then they are exposing themselves to the risk of being caught for tax evasion, and in some countries, that may mean a term in jail and severe punitive penalties (the US and Canada seem to be most atrocious in this regard)

In other words, people prefer not to mess with the IRS (an abstract and exemplary Internal Revenue Service)

[darkangel11]

Perhaps in the future, when the government takes control into its hands, then it will be right to pay taxes, but now this is absurd.

How paying taxes is something absurd? Citizens want to get free school, free everything but don't want to pay a tax? The same people who complain about the system in their country. We have to participate in the system because as far as I know money still not grows on trees.

It's funny too, to see people agree with crypto regulations but not to pay crypto taxes. Well you asked regulations so here we go...

Income tax is absurd and I'd like you to prove to me that it isn't. Like I always say, let's not put all taxes into one basket. Sure, citizens want free schools, but schools are usually financed from their local taxes, the ones they pay on the property they own and that goes towards maintaining the roads, lamps, parks, schools local services like fire dept, and so on.
Income tax goes to the general budget and ends up being spent on social services, army, government buildings, transport and security for the MPs and so on...

Most of us aren't against contribution, but are against the government trying to suck people dry and ride on their backs until they die.


Do you want to be that pig all your life?

[Yusuf_Jay]

Yes, now in most countries, if you monetize your profits by converting them to fiat then you have to pay direct taxes or income taxes.

Although Bitcoin is not a currency that is bound to one country, today many laws regulate Bitcoin and require you to pay taxes.

[bajigur894784]

Well, that's the reality, currently Bitcoin is a taxpayer. Now most of the regulations on cryptocurrency in some countries categorize Bitcoin as a commodity and capital asset, therefore, there is a tax obligation from business income and capital gains.

[deisik]

Well, that's the reality, currently Bitcoin is a taxpayer. Now most of the regulations on cryptocurrency in some countries categorize Bitcoin as a commodity and capital asset, therefore, there is a tax obligation from business income and capital gains.

Are you sure about capital gains?

This is a very specific notion which may mean different things in different countries. For example, in some countries it is a tax levied on the increase in the price of a specific type of an asset. But it is not like a property tax as you don't have to pay it annually just because you own some asset and its price has appreciated during the year. You only pay it when you sell the asset and in that case it is pretty much like income tax with the difference being that a capital gains tax is always specific while an income tax is indiscriminate meaning, that you pay it on any income earned

Another difference is that with a capital gains tax, you pay the tax only on the profits or positive difference between the price at which you sold the asset and the purchase price, while with an income you have to file a tax deduction application if you don't want to be asked to pay it in full, i.e. without taking into account the purchase price. Besides, if you hold an asset a certain amount of time (like 1 to 3 years and beyond), you may not have to pay this tax at all. This is different from an income tax

[qwerty12]

Well, as you said, Bitcoin was created to liberate us from our governments. But, over time, many regulations and laws related in various countries can cause taxation on Bitcoin. There is no other choice but to comply with the law, otherwise it will only cause bigger problems, I think, because of this, many Bitcoin holders are willing to pay taxes on Bitcoin.

[Pattart]

Perhaps in the future, when the government takes control into its hands, then it will be right to pay taxes, but now this is absurd.

Its possible dude, because at the moment we see how intense the government is in verifying IDs for bitcoin users in various exchanges,
of course with the aim that crypto users can be controlled by the government, and in the future taxes may be required?

[bitezoid]

Bitcoin was created to liberate us from corrupt governments and corporations that serve their own needs. The coinbase transaction in the genesis block, mined by Satoshi Nakamoto contained: "The Times 03/Jan/2009 Chancellor on brink of second bailout for bank". What is your opinion on paying taxes on Bitcoin? The government most likely doesn't know my bitcoin address. Even if they do find it, based on the transactions made from my bank account to exchanges, I could simply say someone stole the private key from me. Many of the posts here asking for help on filing taxes on their Bitcoin make no sense to me. We have a system that allows complete financial freedom and yet people choose to pay their taxes from it and support crooked governments.

since bitcoin isn't dependant on any bank or governmental system there is no MUST to pay tax for it!

[deisik]

Bitcoin was created to liberate us from corrupt governments and corporations that serve their own needs. The coinbase transaction in the genesis block, mined by Satoshi Nakamoto contained: "The Times 03/Jan/2009 Chancellor on brink of second bailout for bank". What is your opinion on paying taxes on Bitcoin? The government most likely doesn't know my bitcoin address. Even if they do find it, based on the transactions made from my bank account to exchanges, I could simply say someone stole the private key from me. Many of the posts here asking for help on filing taxes on their Bitcoin make no sense to me. We have a system that allows complete financial freedom and yet people choose to pay their taxes from it and support crooked governments.

since bitcoin isn't dependant on any bank or governmental system there is no MUST to pay tax for it!

Sorry to disappoint you, but this is not how the tax system works

As the task of reporting your income lies exclusively on you. You may choose not to report it and probably you will get away with that, for a couple of times or even years. Then your envious and overall wicked neighbor reports on your new sports car and you have to face some serious issues standing tongue-tied in an effort to explain where all this money comes from and, more importantly (for the tax authorities at least), whether you paid an income tax on it that you so thoughtlessly wasted on all these useless things so carelessly betraying your income

[bitcoingamer8]

In my opinion we should not pay taxes on bitcoin since we are all risking our money to invest in it.

[Crypto_topic]

The taxes should be paid if its regulated in your country for crypto currencies. But, one thing Im sure, that right now the laws and regulations for that are on such a raw level in many countries.
And actually it is your own obligations to do so. If you trade a lot and are officially unemployed, that will be noticeable.

[Mainman08]

If the law require us to pay then its our duty to pay it. And if we pay the tax. Just put in our mind that we can help allot of people by the tax that we pay.

[zahed]

If the government wants to pay it must. But if the government does not want it then there is no need to pay it. Bitcoin legalize countries governments may take bitcoin tax fee that is govt. wish and this usd spend to improve in any country sector.

[justmyname]

And what did the government do to claim the tax on the crypto currency? Maybe they made her or lowered the cost of transactions? Or maybe they insured us from stealing the crypto currency? NO! That's why taxes should not be!

Taxation without representation is what the call it. Why should these non elected political hacks get taxes from us?  They don't protect our assets from criminals. They haven't developed the concepts. 

[justmyname]

I say. We should only have a reasonable fee when exchanging for fiat currency. They get something like 1-4% if I turn it into fiat government currency. Then you wouln't have to figure anything out. It would be done automatically without a hassle. 

[deisik]

In my opinion we should not pay taxes on bitcoin since we are all risking our money to invest in it.

It is the same risk as investing elsewhere

For example, when you buys company stocks, you are risking the company in question going belly up, and thus losing your investment entirely. In this manner, the risks are essentially the same. If you are a venture investor, the risks can in fact be even higher as Bitcoin is an already well-established and trusted investment asset, and your risks are quite manageable no matter how much you invest. That said, if you sell your stocks for a profit, you have to pay either an income tax or a capital gains tax, depending on jurisdiction. Obviously, if you book only losses, you don't have to pay anything, and again in some jurisdictions you can use these losses as a tax deduction for the next few years if you later earn profits on the stock market. But no one is going to pay you a negative tax on you losses, i.e. compensate them, fully or partially, of course