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Trongersoll
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September 25, 2013, 05:36:22 PM |
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No taxes. The government does no control it.
Taxes have nothing to do with control. In the US, your stance could get you arrested for tax evasion.  |
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"Governments are good at cutting off the heads of a centrally
controlled
networks like Napster, but pure P2P networks like Gnutella and Tor seem
to be holding their own." -- Satoshi
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Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
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RodeoX
Legendary
 Offline
Activity: 3066
Merit: 1145
The revolution will be monetized!
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September 25, 2013, 05:38:28 PM |
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No taxes. The government does no control it.
Taxes have nothing to do with control. In the US, your stance could get you arrested for tax evasion. Quite right. The government does not control hats either, but buy/sell a hat and someone is getting taxed. |
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blackangel1916
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September 25, 2013, 05:49:36 PM |
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Reducing taxes will do a good job at reducing the size of gov though
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Mike Christ
aka snapsunny
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September 25, 2013, 05:54:41 PM |
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Taxman!The best and most inexpensive way I see Bitcoin and taxes getting along is if a flat tax rate is introduced; no more taxing your income, expenses, and existence, just a simple yearly bill.
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MAbtc
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September 25, 2013, 06:09:07 PM |
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Depends where you live, but best believe, most jurisdictions want to get their cut. Here in the US, bitcoin gains on trading for instance, would fall generally under capital gains, and more specifically may fall under "foreign currency gains." If not a currency, then we're actually worse off, if you read the tax code.
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Jumpy
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September 26, 2013, 03:18:45 AM |
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As others in this thread have mentioned, it's unlikely that you MUST pay taxes on income from BTC, however, you might think about the positive implications such a practice has.
Several national governments are just beginning to examine BTC policy. Of course, taxing BTC (or ensuring that it is taxed if already applicable) is going to be one of their primary concerns.
If you are running a legally recognized business, it would probably be prudent of you to pay taxes on BTC-related profit if only to show that BTC is not a threat to your local government's tax policies and revenues.
Of course, a not-insignificant portion of the BTC community identifies as libertarian or even anarchist and they will probably flame me for this post.
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PM me if you want to advertise on this signature.
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surebet
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September 26, 2013, 04:09:28 AM |
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You guys should really consider talking to a fiscalist or a tax accountant, because the opinions in this thread are terribly wrong, at least from my Canadian point of view.
tl;dr as long as you sit on them nothing much happens, but the second you make a gain from cashing out or otherwise exchanging them you are liable.
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Jumpy
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September 26, 2013, 04:14:34 AM |
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because the opinions in this thread are terribly wrong, at least from my Canadian point of view.
You just painted with a pretty broad stroke there. I am a financial professional by day. |
PM me if you want to advertise on this signature.
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nahtnam
Legendary
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Activity: 1092
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nahtnam.com
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September 26, 2013, 04:46:57 AM |
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As far as I know, you don't have to pay... It's best of you ask a tax consultant....
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surebet
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September 26, 2013, 06:41:17 AM |
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because the opinions in this thread are terribly wrong, at least from my Canadian point of view.
You just painted with a pretty broad stroke there. I am a financial professional by day. Ok, explain to me how you bypass both capital gains taxes and currency transaction taxes. Are you getting richer via your action? Yeah, there's a tax waiting for you. |
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rudeboy
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September 26, 2013, 06:51:04 AM |
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Lol
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Jennifer Smith
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September 26, 2013, 07:04:40 AM |
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While advice from forum members may offer insight, you should probably consult an experienced tax attorney. At least in my local area, most attorneys will answer brief questions for free. If not, you can always visit Avvo and see what the lawyers there believe. I asked my attorney something similar some time ago and was surprised at the answer.
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RodeoX
Legendary
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Activity: 3066
Merit: 1145
The revolution will be monetized!
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September 26, 2013, 01:40:25 PM |
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While advice from forum members may offer insight, you should probably consult an experienced tax attorney. At least in my local area, most attorneys will answer brief questions for free. If not, you can always visit Avvo and see what the lawyers there believe. I asked my attorney something similar some time ago and was surprised at the answer.
That is good advice. I would add that even a tax lawyer may respond to your question with "WTF are you talking about?" This is all new stuff. But whatever shakes out, you are going to owe some taxes if you sold bitcoins at a profit. |
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chaolang
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September 26, 2013, 01:53:13 PM |
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no tax !
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MAbtc
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September 26, 2013, 04:59:28 PM |
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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. When mining with a large mining pool, I agree, the bitcoins you receive are a payment for services rendered (selling hashing power). The pool operator is the payee. These coins should be treated as income, probably valued at the time of payment. However, when solo (or p2pool) mining, the story changes. There is no payee, there is simply a computer program (and network). There is no payment, you create the bitcoins (out of thin air) when you solve the next block. Any tax responsibility should be similar to taxes you would owe if you bought some tools (hashing machines) and used them to build something (bitcoins), probably valued at the time you sell or exchange them, although they could be considered inventory (which might be taxed). Disclaimer: I am not a CA. Well, bitcoins mined have a fair market value at the time received. If there is a difference between that value, and the value you sell or exchange them for, pretty sure that is capital gains. As others said, always good to seek the advice of a real attorney (which I, and presumably we, are not).  |
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CEG5952
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September 26, 2013, 06:20:51 PM |
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Beware the tax man! He's coming for you! |
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Marbit
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September 27, 2013, 02:04:11 AM |
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i'm too poor to pay taxes.  |
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nahtnam
Legendary
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nahtnam.com
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September 27, 2013, 02:53:49 AM |
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Just as a joke: ain't nobody got time for that sh**  |
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nobbynobbynoob
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September 27, 2013, 03:01:24 AM |
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If you sell bitcoin to buy fiat and turn a fiat profit doing so, then in many jurisdictions this is called a capital gain and may be considered taxable. The State might not actually force you to pay any tax on this gain, though, since it depends on the jurisdiction in question, the amount of the fiat gain, the duration of the original investment, and so on. There is no simple black and white answer.
Those hell bent on evading taxes (morally, I have no qualm with them) won't be asking these questions, since they will do everything they can not to pay, and that doesn't really have much to do with bitcoin. If the State calls something tax evasion, that applies whether bitcoin is involved or not.
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