Signature Campaigns taxes

[milewilda]

Im interested in knowing if OP ever cashed out some of his bitcoin gains obtain through signature campaign participation. He is still active, he was posting 2 days ago.

I would like to know how it went for you, which information did they request when you cashed out and when filing taxes (how did you prove licit origin of funds). Also did you get hit by any penalties for not paying taxes before or something? Let us know.

Maybe needed a little help on telling him about this thread that he did create thru Pm'ming clarifying on whats the solution he had made on such situation.This is already an old
thread and 4 months since on the last reply and was supposed to say that this is necroposting but basing on such question it is really considerable for us to know on what did
really happen for him to get out.

[ningrumxxi]

I wouldn't bother. The amount you can earn from these campaigns are quite small, even for Legendary ranks.
I don't think no one will harass you for such a unusual income that no one is sure about.

Bitcoin is largely unregulated in the world and it will be difficult to regulate it once they make a significant effort.
This amount is also pretty small, so I don't see why someone would really care, as the whole signature campaign economy is very small.

But then again, I am not a lawyer, I have no idea.

maybe for those who always judge something with this result it is very small, but the signature campaign that is the goal is not the result of money but more in recognition, or legality, because bitcoin once again needs a real recognition or effect in the world of commerce, so it all depends assessment of some of the world community, the most important thing is that bitcoin needs all the support from its users.

[cellard]

Im interested in knowing if OP ever cashed out some of his bitcoin gains obtain through signature campaign participation. He is still active, he was posting 2 days ago.

I would like to know how it went for you, which information did they request when you cashed out and when filing taxes (how did you prove licit origin of funds). Also did you get hit by any penalties for not paying taxes before or something? Let us know.

Maybe needed a little help on telling him about this thread that he did create thru Pm'ming clarifying on whats the solution he had made on such situation.This is already an old
thread and 4 months since on the last reply and was supposed to say that this is necroposting but basing on such question it is really considerable for us to know on what did
really happen for him to get out.

I don't believe it's necroposting. As far as I know this is the most active thread on the subject of signature campaign taxes. Why create another thread for the same subject.

Anyway, if you get a reply from him via PM then tell him to check out the thread and hopefully he can reply. His last post is on 15th and he is wearing a signature so he is still getting payments I presume. I wonder how he solved his situation or if he just decided to hold it all to not risk getting in trouble with the taxman without everything ready when they ask for details.

[basyang]

Now first of all I live in spain and I'm wondering if someone has ever paid taxes with money acquired from signature campaigns here. I made a decent amount of money a year ago because campaigns were giving 0.03-0.04 per week. I wouldn't really know how to pay taxes if I need to, would this count like a job and how exactly would someone prove they got their bitcoins from signature campaign , seems quite difficult.

Edit

A few options are presented:

1. Don't say anything, it's virtually impossible for any tax agency to find out what you have. However eventually they might be able to and you could face serious problems.

2. Mark it as freelance work and a tax rate will be applied to it, up to 50% (reported by an user) It seems that they wont ask for much information or proof as long as you are declaring it intentionally.

3. Simply spend bitcoins or any other cryptocurrency that you earned without ever converting it to fiat because cryptocurrencies are usually not taxable in most European countries.

Paying taxes in the Government is one of responsibility of citizen to its country whether we like it or not. For me, It depends on your country. If your country adopted bitcoin and it has a regulation about taxes then you have a responsibility to pay taxes. Well, as far as I know taxes applied if you are using your native currency to pay something, trades or in transaction.

[Theb]

Maybe virtually they cannot see you evading your taxes but physically they can. The way they see how you are living in which in their eyes does not satisfy with your income makes them suspicious on how you can afford such lifestyle even though your income does not support it. This is how most of the tax evaders gets caught because of how they live which contradicts on how much they earn.

3. Simply spend bitcoins or any other cryptocurrency that you earned without ever converting it to fiat because cryptocurrencies are usually not taxable in most European countries.

Is there really such tax exemption? Because I wonder why all europeans still use Euro if they can avoid taxes if they purely use cryptocurrencies as mode of payment. Sounds dumb isn't it? Because if there is such law that exist no one will be using Euro today in order to avoid taxes.

[Lucius]

Maybe virtually they cannot see you evading your taxes but physically they can. The way they see how you are living in which in their eyes does not satisfy with your income makes them suspicious on how you can afford such lifestyle even though your income does not support it. This is how most of the tax evaders gets caught because of how they live which contradicts on how much they earn.

3. Simply spend bitcoins or any other cryptocurrency that you earned without ever converting it to fiat because cryptocurrencies are usually not taxable in most European countries.

Is there really such tax exemption? Because I wonder why all europeans still use Euro if they can avoid taxes if they purely use cryptocurrencies as mode of payment. Sounds dumb isn't it? Because if there is such law that exist no one will be using Euro today in order to avoid taxes.

If I have any earnings which come directly from cryptocurrency and I receive that coins in my personal wallet (not any online site with KCY) I'd really be a fool to pay any tax. I can spent my coins directly to pay services and products anywhere in the world, of course I will not buy a house or Lambo to draw attention of tax office.

All Europeans do not even know what is BTC, and you wonder why they use Euro instead of crypto? Sounds pretty dumb that you think converting fiat to crypto means avoidance of tax, we are talking about income from signature campaigns - they are paid in crypto and if they stay or become spended as crypto payment only tax user will pay is VAT.

However some people live in total fear of their governments, and they literally begging tax offices to take their money.

[Theb]

If I have any earnings which come directly from cryptocurrency and I receive that coins in my personal wallet (not any online site with KCY) I'd really be a fool to pay any tax. I can spent my coins directly to pay services and products anywhere in the world, of course I will not buy a house or Lambo to draw attention of tax office.

All Europeans do not even know what is BTC, and you wonder why they use Euro instead of crypto? Sounds pretty dumb that you think converting fiat to crypto means avoidance of tax, we are talking about income from signature campaigns - they are paid in crypto and if they stay or become spended as crypto payment only tax user will pay is VAT.

However some people live in total fear of their governments, and they literally begging tax offices to take their money.

I have to agree with you. I myself won't report anything officially with regards to my signature campaign earnings as it is just enough to fly under the radar of our taxing bureau, what I meant about that is the amount of weekly earnings I receive from my campaign is also counted in the income tax bracket where citizens are exempted from paying tax in my country so I don't need to worry about breaking any laws.

Another scenario I am concerned with is the trouble it will produce if I reported my earnings in a signature campaign. The headache and time it will cause if the taxing department issued a requirement of proof about my "signature campaign earnings" will be too much for me. Of course I can't give no more than the spreadsheet link of the campaign I am participating as proof where I also need to to convert the BTC payment I receive in its fiat currency equivalent every time I receive a payment which honestly I haven't done so far.

[coolcoinz]

Just like Lucius and Theb, I don't treat my Bitcoins as taxable income. In fact, according to the law in my country, I'm not obliged to report my Bitcoin holdings and pay taxes unless I cash out. Technically, buying goods is considered selling, so I should pay taxes at that point, but It's almost impossible to prove, especially if you spend your coins abroad  ordering things online, and these aren't very expensive things. The tax office doesn't care if someone spends 2000€ worth of Bitcoins a year on electronics. Of course, if I ever buy a house or an expensive car, I'll make sure the transaction is legal, and so should you.

[Flor1982]

As what you have suggested it is better to use crypto currency in direct spending to avoid taxes. Here in my country, Bitcoin will be subject to tax only during fiat convertion thru our local exchanges so either how or why you have a Bitcoin is not a big deal for our government but as long as it will not involve huge amount of fiat during conversion.

[cellard]

If I have any earnings which come directly from cryptocurrency and I receive that coins in my personal wallet (not any online site with KCY) I'd really be a fool to pay any tax. I can spent my coins directly to pay services and products anywhere in the world, of course I will not buy a house or Lambo to draw attention of tax office.

All Europeans do not even know what is BTC, and you wonder why they use Euro instead of crypto? Sounds pretty dumb that you think converting fiat to crypto means avoidance of tax, we are talking about income from signature campaigns - they are paid in crypto and if they stay or become spended as crypto payment only tax user will pay is VAT.

However some people live in total fear of their governments, and they literally begging tax offices to take their money.

I have to agree with you. I myself won't report anything officially with regards to my signature campaign earnings as it is just enough to fly under the radar of our taxing bureau, what I meant about that is the amount of weekly earnings I receive from my campaign is also counted in the income tax bracket where citizens are exempted from paying tax in my country so I don't need to worry about breaking any laws.

Another scenario I am concerned with is the trouble it will produce if I reported my earnings in a signature campaign. The headache and time it will cause if the taxing department issued a requirement of proof about my "signature campaign earnings" will be too much for me. Of course I can't give no more than the spreadsheet link of the campaign I am participating as proof where I also need to to convert the BTC payment I receive in its fiat currency equivalent every time I receive a payment which honestly I haven't done so far.

We are not talking about if you can get caught by receiving payments directly in BTC and never converting them into BTC. Of course that is practically impossible, the only way would be if for some reason a business in which you paid with BTC got audited and the BTC payment was linked to your name somehow.

But anyway, the main point here is, if you save your signature campaign earnings, and in 5 to 10 year BTC is worth $100,000 to $1,000,000, then what would be the point of being rich if you can only spend your money on snacks and McDonalds? it's just nonsense. When you get rich you are going to want to buy a nice house and whatnot. And there is the problem. You are going to need to prove that the origin of the funds is legit, and I haven't seen anyone do this. Again: Will they ask for screenshots of the threads? signed addresses? what if some of the history is missing? For instance, I got some missing trading history for some coins... all of this just gives me a massive headache. Not to mention the risk of any penalties which in some jurisdictions are massive and you start thinking if it's worth the risk. But again, what's the point of being rich if you cannot spend it on relevant life changing stuff like a house.

[lepbagong]

During this time I also do not know the mechanism that must be done, whether by getting something income from bitcoin is considered as a livelihood and is required to pay taxes. because usually when I get from bitcoin when changing in the form of money in a service company a discount is always made, whether that also includes tax deductions. maybe because I myself do not know the form of tax that must be imposed. as long as there are no bills and not yet in the form of rules, it may be ignored first.

[imstillthebest]

As what you have suggested it is better to use crypto currency in direct spending to avoid taxes.

Yes you can avoid taxes this way but you cant escape the transaction fees  which is still simillar to taxes  .

signature campaigns doesnt have a tax because its only an online job that is not hold by government .

we also use cryptos here which isnt also regulated by banks but even other online jobs that pays in other currency or payment method such as paypal didnt also have a taxes  .

Tax is only aplicable to offline environment  .

[cellard]

As what you have suggested it is better to use crypto currency in direct spending to avoid taxes.

Yes you can avoid taxes this way but you cant escape the transaction fees  which is still simillar to taxes  .

signature campaigns doesnt have a tax because its only an online job that is not hold by government .

we also use cryptos here which isnt also regulated by banks but even other online jobs that pays in other currency or payment method such as paypal didnt also have a taxes  .

Tax is only aplicable to offline environment  .

This is so wrong. Where are you where that applies? Any income is taxable typically on all countries. If you make money online, you aren't magically exempt of paying any taxes.

If you sell something online, if you have a forum or website with ads... anything that gives you money, the government is going to want a cut like it or not, so stop spreading misinformation that can put people in problem.

Now the problem with Bitcoin is that is extremely new and most people started before governments ever saw anything about it, so they are sitting on all that money and have no idea what to do with it in terms wanting to buy some property for instance. If you made that money posting, then traded altcoins in dead exchanges, then you cash out this money... they ask for proof and you are missing the trades on said dead exchanges.. what are you supposed to do then?

[Snaic]

Interesting question. Taxing bounty hunters on signature campaign will be quite unfair. I think there is no fixed amount when it comes to how much people receive for the campaigns.The amount members earn from these campaigns are not huge enough to go through taxation. Besides, some  of the the tokens do not even go on exchange at all. What about the scam bounties too? bitcoin does not operate exactly like fiat currencies so lets appreciate the differences and forget about taxation. A friend of mine who introduced mine to signature campaigned warned me not to depend solely on it because its not a full time profession that you can earn huge sums from.

I think that in the future we will be forced to pay a certain amount of tax only when we convert the cryptocurrency earned in subscription campaigns to fiat and then it will be charged impersonal, automatically, by banks and exchangers. It is unlikely that a more complex tax collection mechanism will be established in my country. Otherwise, the population simply will not pay any taxes on cryptocurrency. Perhaps, therefore, the issue is resolved at the legislative level in order to remove any tax on profits from operations with cryptocurrency.

[Capt00]

I think that in the future we will be forced to pay a certain amount of tax only when we convert the cryptocurrency earned in subscription campaigns to fiat and then it will be charged impersonal, automatically, by banks and exchangers.
<...>

Yes, you can even now when you are converting your Bitcoin from the signature campaign into cash, you must pay the transaction fee when you are going to cashing out of this and that is considered for me of paying tax. But when it comes Bitcoin itself that is impossible to happen or it takes a long time before it happens due to decentralized Bitcoin. If your country now doesn't implement that let's just enjoy the opportunity and don't bother your self on that matter.

[BLAST2MARS]

Things are not really clear with the crypto tax honestly so I would not waste my time thinking about that and I will just enjoy all my profits. And you need only to explain yourself if you are buying houses and cars with the rewards you get from campaigns but I am sure that you don't so nobody will investigate you.

[ramesh770]

I am just showing the bitcoin earned to fiat currency as product sold and just giving the tax for the profit. because their is no other option to show the profit and even now it is not legal to use bitcoin so cannot show more.

[bhadz]

Things are not really clear with the crypto tax honestly so I would not waste my time thinking about that and I will just enjoy all my profits. And you need only to explain yourself if you are buying houses and cars with the rewards you get from campaigns but I am sure that you don't so nobody will investigate you.

Depends on the country that you live, as long as you're paying the right tax which is declared upon buying a property or car you have to comply with the legalities required for acquiring that asset. As implied by others, if you have earned through any means of signature campaign or bounty rewards you have to declare it as something you gained which is taxable. Such countries will just consider it as you've earned online and won't be specific about it.

[eaLiTy]

The problem is that it gets really messy, specially considering that I have been doing this for a year when you could earn a lot of bitcoins, 0.04 wasn't much then but now is around 300$ not to mention other giveaways and things like that. I was pretty sure it would be something like freelance, however the problem I have is how to prove you did it, I didn't save screenshots or transactions at the time and 50% is a ton of money. I have probably traded/bought things with them along the way too. I will eventually consult a lawyer or someone specialized in tax payments.

It has being a year now and what is the situation now, have you paid any taxes on the amount you have acquired till now and how you are dealing it, there is nothing much of an issue here, if you have bitcoin if you have invested or got through any other way, you can submit it as income from other sources and you can pay your taxes,  since there are no clear regulation on how to pay those taxes in most countries that is how most are paying their taxes to be on right side of the law. 

[sheenshane]

It has being a year now and what is the situation now, have you paid any taxes on the amount you have acquired till now and how you are dealing it, there is nothing much of an issue here, if you have bitcoin if you have invested or got through any other way, you can submit it as income from other sources and you can pay your taxes,  since there are no clear regulation on how to pay those taxes in most countries that is how most are paying their taxes to be on right side of the law. 

You have a point there, I'm just curious how to pay taxes using your Bitcoin because I haven't experience on that. We're so lucky that our government didn't impose any law regarding paying tax on crypto. However, they recognized Bitcoin is the other option of making the transaction online. I think from your earning in the signature you can pay tax by that if you are going to convert fiat and there's a transaction fee which I consider a tax.