Bitcoin taxes

[Bartdude]

What is going on with the taxes?
If i earn money by mining, or by playing on prime-dice and win and then cashout out to my local currency, then this would be legal? The state shouldn't have tax the money i earned?

[Bartdude]

Not sure what's going on with the laws here (Greece), but if i exhcange my bitcoins to euros and transfer them to my bank account, i think if the amount of money is big then they will invenstigate where did this money came from.

[Bartdude]

Well im not so sure that i will be billionaire with btc
but this is just one of my random concerns

[icey]

Not sure what's going on with the laws here (Greece), but if i exhcange my bitcoins to euros and transfer them to my bank account, i think if the amount of money is big then they will invenstigate where did this money came from.

Considering what's actually going on in Greece, i'm sure they'd investigate any significant amount of money moving between accounts be it related to bitcoin or not.

Would it be possible to cash-out via those Polish Cards linked to bank accounts? Should be able to do this with smaller amounts.

[Bakemono]

What is going on with the taxes?
If i earn money by mining, or by playing on prime-dice and win and then cashout out to my local currency, then this would be legal? The state shouldn't have tax the money i earned?

I guess that if you want to be 100% legal you must declare any earnings when you fill your tax return.
Condidering that declaring earnings in bitcoins is not yet possible, you should at least disclose earnings that you converted to your local currency.

[Foxpup]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not. In some jurisdictions (I'm not sure about Greece), this also applies to gifts and gambling winnings. You do not have to pay income tax if you simply bought your coins on an exchange (but see below). You may also be able to claim a deduction on any expenses relating to your bitcoin earnings.

The second is capital gains tax. If you sell or otherwise trade your bitcoins (regardless of how you acquired them), you have to declare the difference between the market value when you acquired your bitcoins and the market value when you disposed of your bitcoins (eg, if you bought BTC100 for €2000 and then sold BTC2 for €200, you would have to declare a capital gain of €160, since you bought your coins for €20 each and sold for €100 each, so you made €80 profit per coin). If the market value when you disposed of your coins is lower than when you acquired your coins, you have a capital loss which you may (again, I don't know what the law is in Greece) be able to claim a deduction on.

I'd advise you to consult an accountant (instead of random people on the Internet) for further clarification of your tax situation (especially regarding capital gains tax, which can get quite complicated). As you point out, if you deposit large sums of money to your bank account, the authorities will find out about it, so be sure to declare it correctly on your tax return.

[marcovaldo]

What is going on with the taxes?
If i earn money by mining, or by playing on prime-dice and win and then cashout out to my local currency, then this would be legal? The state shouldn't have tax the money i earned?

Of course if you speculate / do anything and make money with bitcoins, you have to pay taxes on that, depending on how much you won, and how. You should read something about the laws in your country

[msc]

What is going on with the taxes?
If i earn money by mining, or by playing on prime-dice and win and then cashout out to my local currency, then this would be legal? The state shouldn't have tax the money i earned?

Conversions to your local currency are taxable.  BTC gains from mining or playing around on Bitcoin sites probably aren't taxable until you cash out.

But, if you're a business, and you're accepting payment in Bitcoin, then my opinion is that you should treat those BTC sales as if they were cash sales.  The way you do that is pretend that the customer gave you cash, and you used the cash to buy the BTC.  That way you're not cheating on taxes by accepting Bitcoin.

[Bakemono]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not.

So you are telling that if i draw a great painting, i must decrale its market value as earned income, whether i sell it or not?

[Trongersoll]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not.

So you are telling that if i draw a great painting, i must decrale its market value as earned income, whether i sell it or not?

actually, until you sell it it has no value. consider bitcoins under the capital gains rules and taxes due when it it converted to fiat. Technically, if you spend the Bitcoins you mined you would most likely be required to pay taxes on the fiat value of what you bought. as long as you keep your bitcoins bitcoins and don't spend them i doubt taxes would be required.

[Foxpup]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not.

So you are telling that if i draw a great painting, i must decrale its market value as earned income, whether i sell it or not?

No, because that painting isn't payment for services rendered, which is what mined bitcoins are. They are the payment that miners receive for securing the Bitcoin network. If you receive anything as a payment for services or any other kind of work you did, that's income and you have to declare it.

[corather]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not.

So you are telling that if i draw a great painting, i must decrale its market value as earned income, whether i sell it or not?

No, because that painting isn't payment for services rendered, which is what mined bitcoins are. They are the payment that miners receive for securing the Bitcoin network. If you receive anything as a payment for services or any other kind of work you did, that's income and you have to declare it.

Bitcoins are a token like a stock. Until the token is sold there is no tax levied. They do fall under capital gains taxes.

For example if your employer pays you in stocks as well as salary, only your income is declared under regular income taxes. Until you sell the stock there are no taxes generated since they fall under capital gains. Bitcoins are no different.

[masyveonk]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not.

So you are telling that if i draw a great painting, i must decrale its market value as earned income, whether i sell it or not?

No, because that painting isn't payment for services rendered, which is what mined bitcoins are. They are the payment that miners receive for securing the Bitcoin network. If you receive anything as a payment for services or any other kind of work you did, that's income and you have to declare it.

You have flawed logic I believe, Bitcoin is not money.

[marcovaldo]

You have flawed logic I believe, Bitcoin is not money.

So what is it?

[masyveonk]

You have flawed logic I believe, Bitcoin is not money.

So what is it?

Just a state in blockchain file, if you dont spend them you cant be taxed, no one can prove you own the private key when mined, or anytime later. It is not money, and only spend bitcoins havethe value of exchanged item

[marcovaldo]

Just a state in blockchain file, if you dont spend them you cant be taxed, no one can prove you own the private key when mined, or anytime later. It is not money, and only spend bitcoins havethe value of exchanged item

Yes, but still it is money.
And you get taxed on the profits you make with it.

[saif313]

Just a state in blockchain file, if you dont spend them you cant be taxed, no one can prove you own the private key when mined, or anytime later. It is not money, and only spend bitcoins havethe value of exchanged item

Yes, but still it is money.
And you get taxed on the profits you make with it.

but of peoples not giving taxes on this money which is coming through mining and bitcoins gambling

[Bakemono]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not.

So you are telling that if i draw a great painting, i must decrale its market value as earned income, whether i sell it or not?

No, because that painting isn't payment for services rendered, which is what mined bitcoins are. They are the payment that miners receive for securing the Bitcoin network. If you receive anything as a payment for services or any other kind of work you did, that's income and you have to declare it.

So if someone pulls off a 51% attack he also gets tax free bitcoins?! That's unfair...

[neutralist]

There are two types of taxes you need to worry about with Bitcoin.

The first is regular income tax. If you earn bitcoins by mining or doing any other kind of work, you must declare the market value of your bitcoins as earned income whether you sell them or not.

So you are telling that if i draw a great painting, i must decrale its market value as earned income, whether i sell it or not?

No, because that painting isn't payment for services rendered, which is what mined bitcoins are. They are the payment that miners receive for securing the Bitcoin network. If you receive anything as a payment for services or any other kind of work you did, that's income and you have to declare it.

So if someone pulls off a 51% attack he also gets tax free bitcoins?! That's unfair...

If someone is resourceful and brave enough to pull off this shit he deserves all the BTC.

[patino11]

No taxes. The government does no control it.