Bitcoin tax question

[Humptydumpty2]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

[kendedese]

tax from the people to the people. I agree if bitcoin is taxed, but the tax must be managed for bitcoin back.

[bintangkejoraku]

tax from the people to the people. I agree if bitcoin is taxed, but the tax must be managed for bitcoin back.

I think the tax is the absolute right of the state to be used for the benefit of the state. eg for the construction of bridges and toll roads.

[velar12]

If you are asked to pay taxes, then pay them, and if no one addressed you, then do not pay.

[sunanbonang]

you talking tax, while the legality of bitcoin is still questionable. I think it's still too early to talk about tax issues.

[Marlo Stanfield]

you talking tax, while the legality of bitcoin is still questionable. I think it's still too early to talk about tax issues.

As a US citizen that's not true at all. People have been paying taxes on Bitcoin related things for many years now. Avoiding taxes in the US while doing business with US based Bitcoin companies is good way to draw the attention of the IRS. And in some cases end up in jail.

Highly recommended to consult an accountant when it comes to tax issues. That's one thing you can't really afford to mess up.

[noorman0]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

I do not think there's anything wrong. At least there is no written warning from the tax system then you're still tax-free for your activities. Not that you do not want to pay taxes, but make sure if they start applying the tax law on cripto to their tax system then let the system ask you to pay.
It is still the beginning and needs a lot of improvement. It is feared that certain people will do bad things if you are not listed as a taxpayer on the system and you pay taxes to the wrongsides.

[Kprawn]

You have to declare all income, no matter what it is. It does not matter to the tax authorities, how you obtained that income

and if it was not defined or regulated at the time. It is still a income that you had to declare, so you might have to pay some

sort of penalty or declare the income in the next financial year. Just go speak to them and ask the questions from them and

they might even expunge the penalties. I spoke to my authorities and they helped me to declare the income from previous

years, without any penalties. 

[sakib12121012]

No, Bitcoin tax dose not pay. Because it dose not exist online.

[FurDich]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

Is there any tax that are involve in using and implementing bitcoin ? What is the purpose of the money and how much interest it would take ? It should be fair . We should all have taxes when the campaign and bitcoin will be legalize .

[DMCR lah]

maybe this happened to me. depending pemeintahnya want given taxpayer or not. Given the bitcoin is a foreign coin, and the regulation in Indonesia is quite large. giving taxes to the bitcoins for its users could be an additional payment for Indonesia.

[Flayme]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

Tax is for everyone....  Government used this system for our own good also....  But in this case if we are the one who pay taxes I will surely agree if we are also the one who will be benefited by it....  Working here is not easy and if tax is really impose here somehow it will affects us especially if we are just inly starting here...  But if the government use our tax to develop our security against scammer and hacker then probably tax is great....   

[thefaucetrunner]

I would get with some kind of tax expert. I don't know how much money we are talking about. I hope that my tax software takes care of all these laws by asking the right questions, but we need to know so we can anticipate potrntial tax costs and trade with that in mind.

[jaysabi]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

You probably need to talk to an accountant or tax attorney. Taken as a given that the tax law passed in January eliminated the like to like exchanges being a taxable event (and I'm taken this as a given because I don't actually know if this is true, as this is the first I've heard of it), but if true, it would make sense to me that you would not claim the exchange of Litecoin to another crypto as a taxable event because you're not calculating the tax burden until April and in April you use the laws that are current at that time, which would include the January change. It would be like if you owned a stock that pays dividends all year, in April of the next year you would have to calculate how much tax you owe on this dividend payments, but if in January the law changed and said dividends are tax free, I assume you would likewise not have to pay taxes on the dividends the previous year because as of the tax filing deadline, the law says no income tax on dividends.

However, this logic needs to be vetted by actual tax professionals. It's a shame that no response in this thread is even on point to the OP.

[Bumblecoin]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

I already heard that tax is imposed for crypto currency in some countries but I do not have the idea as to the system or their procedure. But I think if there is no written notice for you maybe it does not matter.

[Cynooza]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

As a rule, laws do not work 'backwards' which means any now-unlawful activity which was commited before the law came into effect, is not restricted by that law.

[BitcoinTurk]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

Not only Bitcoin, I think that all other cryptocurrencies can not be taxed. Of course, as long as we do not know how much information is bought and sold by taking information from the stock market addresses where we share our identity information. If these stock market addresses share this information with the states, then make sure that we do not see taxation depending on those amounts. That's why we must avoid identity verification, I think that we can protect so much of the profits if we give our company information.

[Marlo Stanfield]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

Not only Bitcoin, I think that all other cryptocurrencies can not be taxed. Of course, as long as we do not know how much information is bought and sold by taking information from the stock market addresses where we share our identity information. If these stock market addresses share this information with the states, then make sure that we do not see taxation depending on those amounts. That's why we must avoid identity verification, I think that we can protect so much of the profits if we give our company information.

Except we haven't been able to stop the tide of identity verification/KYC/AML ect. It's just gotten worse and worse over time.

You know it's getting bad when you hear about Localbitcoins starting to require that type of verification in some cases. It's an uphill battle and it seems we're losing it.

[bohr]

Im a US citizen and am still confused with the current crypto tax interpretation. In October of 2017 I traded some litecoin for another crypto. Then in January 2018 the tax bill passed and eliminated the like to like exchanges of crypto.

My interpretation is that since I made the trade before the law changed then I did not create a taxable event. Am I wrong in this interpretation?

I really doubt that you are going to get the very meaningful answers here, it is better for you to contact a tax attorney and even better try to find one that has experience with cryptocurrencies, you're going to be charged for it but believe me a few hours consulting a tax attorney will save you a lot of headaches in the future so do it and see what he says to you.

[yusupjatigumilar]

about the implementation of taxes on each bitcoin transaction actually it has happened but it is still a discount or transaction fee made by each exchange, I think the government only need to levy taxes on the exchange company or market it alone, it will be more efficient when compared with the collection directly to the bitcoin owner