Do people have to pay taxes on Bitcoin?

[imrul5]

Bitcoin is not made for taxes   to be paid on it. but i beleive that the best for government maybe to ask bitcoin operators to pay tax  and there will help to make the bitcoin   popular Just that the charges should be considerate and moderate

But we should keep it in our mind that cryptocurrency market is in initial stage. To add tax on this sector may have a bad effect.

[imrul5]

It depends on the government rules and regulation. If government accepts bitcoin then i think they will charge some taxes for every transaction and investors must pay those taxes.

Yes,it is depend on government rules and regulations.  But I am talking about bad effect on cryptocurrency market.  Don't you think it is bad for the bitcoin

[BitHodler]

But I am talking about bad effect on cryptocurrency market.  Don't you think it is bad for the bitcoin

It shouldn't be. In the end people will just look for ways to conveniently cheat the system, which has been happening for decades in the regular market. The wealthy elite doesn't do anything other than that to preserve wealth.

Local crypto markets around the world have been exploding due to all the regulations that people are sick and tired of, and I'm happy that the regular people with crypto have another option now.

I think that eventually when crypto becomes more mainstream than it is right now, that we'll see lower tax rates in an attempt to lower the bar for people to report their holdings and gains. It's only a matter of time.

[delphic]

The regulations governing the taxation of bitcoin and other crypto-currencies differ significantly in different countries. In some jurisdictions (EU), bitcoin is considered a currency, others (the US and Australia) regard it as an asset. Some countries (Japan) adhere to the intermediate approach, defining bitcoin as "equated to assets carrier value." In many other countries, the system of regulation and taxation has not been developed yet, and the representatives of the financial sector consider them to be high-risk speculative investments.
Initially, I think it's still necessary to fix the official status and fix the attitude in the state to the crypto currency, and then demand taxes for it. And do not forget that the idea was about anonymous operations in the first place. And the taxation system oppresses this idea.

[Hughes_Ryan]

If my country legalised Bitcoin and cryptocurrency, then surely the government would force people to pay taxes. And of course, I will agree and pay a full tax if Bitcoin was accepted in my country.

[onrise]

Bitcoin is not made for taxes   to be paid on it. but i beleive that the best for government maybe to ask bitcoin operators to pay tax  and there will help to make the bitcoin   popular Just that the charges should be considerate and moderate

In our country it is mandatory to pay taxes on any income earned and if you fall in the category prescribed by the government then accordingly the % has to be given. And if you fail to do it then you will be liable to he punishment which they have it in the law.

[Argoo]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

In principle, nothing wrong with the fact that in the United States recognized bitcoin as property and tax it as a property, I do not see it. In any case, the tax must be paid, since if the state bodies see that people do not pay taxes from the crypto currency, then additional restrictions on the crypto currency may be introduced.

[richardsNY]

And if you fail to do it then you will be liable to he punishment which they have it in the law.

Then make sure the government won't find out that you own Bitcoin or gained whatever profit. If you avoid centralized exchanges and not openly talk about your holdings and profits, which seems to be a trend amongst those who entered the crypto space recently, you'll be fine largely. I made a mistake by completely verifying myself at Bitstamp which made me donate them all information they need when it comes to the coins I bought and traded there. That's why I don't have any option other than to pay taxes where due. I'm however glad that the majority of my coins are stored offline and haven't been bought through Bitstamp, and thus aren't 'affected' and I can manage to keep that part of my wealth under the radar.

[imrul5]

But I am talking about bad effect on cryptocurrency market.  Don't you think it is bad for the bitcoin

It shouldn't be. In the end people will just look for ways to conveniently cheat the system, which has been happening for decades in the regular market. The wealthy elite doesn't do anything other than that to preserve wealth.

Local crypto markets around the world have been exploding due to all the regulations that people are sick and tired of, and I'm happy that the regular people with crypto have another option now.

I think that eventually when crypto becomes more mainstream than it is right now, that we'll see lower tax rates in an attempt to lower the bar for people to report their holdings and gains. It's only a matter of time.

It is true that people always try to cheat the system.  But only wealthy people can do that. General people have to follow the rules and regulations. I think it is better to have some tax on cryptocurrency.  So that government will find some benefit on cryptocurrency.  Also government will work for the betterment of BTC as well as for other cryptocurrency.

[imrul5]

The regulations governing the taxation of bitcoin and other crypto-currencies differ significantly in different countries. In some jurisdictions (EU), bitcoin is considered a currency, others (the US and Australia) regard it as an asset. Some countries (Japan) adhere to the intermediate approach, defining bitcoin as "equated to assets carrier value." In many other countries, the system of regulation and taxation has not been developed yet, and the representatives of the financial sector consider them to be high-risk speculative investments.
Initially, I think it's still necessary to fix the official status and fix the attitude in the state to the crypto currency, and then demand taxes for it. And do not forget that the idea was about anonymous operations in the first place. And the taxation system oppresses this idea.

Yes, I am taking about it. I am against the tax on cryptocurrency.  Imposing tax on BTC will bring a real bad effect on cryptocurrency market for sure. It is time to think about this matter. Cryptocurrency supposed to be anonymous and decentralised.  If government impose tax on BTC then it will be centralised. 

[Biscutard]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

I think it depends on the law of every countries to pay taxes but they have to make a good regulation first. But my question is how would they will know that you have a higher income because of trading when they don't really know what or how's the fluctuation works.

[Yhandukha]

i dont think so. as far as i understand bitcoin is not design to pay tax. it maybe depend on the government. theres no law today about the tax of bitcoin.

[imrul5]

Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purposes. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment.

Is it a good decision or bad?

I think it depends on the law of every countries to pay taxes but they have to make a good regulation first. But my question is how would they will know that you have a higher income because of trading when they don't really know what or how's the fluctuation works.

I am even more confused than you. It is a decentralised system and it has fixed amount of coins. If government impose tax on BTC, it will take control the amount of BTC holding by their citizens.  As a result it will loss its decentralised characteristic.

[CptWhsikeyjack]

You have to pay taxes only if you have cashed out your bitcoins. That means if you converted them back into dollars. Unless there has been an increase in your dollar balance due to cashing out of bitcoin since the time of investment then you have to pay taxes for the profit you made on investing in bitcoin.

[1Referee]

It is true that people always try to cheat the system.  But only wealthy people can do that. General people have to follow the rules and regulations.

That's just nonsense. I am not wealthy but I game the crap out of this system where I can. I am not going to follow idiotic rules and regulations meant to push me further into the hole.

I think it is better to have some tax on cryptocurrency.  So that government will find some benefit on cryptocurrency.

Then go ahead and pay as much tax as you can. Good boy.

Also government will work for the betterment of BTC as well as for other cryptocurrency.

Governments won't do shit. It's not up to them anymore, but up to you to stand up and fight for your rights. If it was up to the governments you would stay their little passive income slave for ever. You don't help yourself by financially supporting criminals. You help yourself by solely using money they can't seize in any shape or form if you play it smart, which is Bitcoin.

I'm sure a lot people here will not agree with me, but that's okay; the mass is always the one sinking deeper down with the years.

[imrul5]

You have to pay taxes only if you have cashed out your bitcoins. That means if you converted them back into dollars. Unless there has been an increase in your dollar balance due to cashing out of bitcoin since the time of investment then you have to pay taxes for the profit you made on investing in bitcoin.

What about the shopping.  Do we have to pay tax on our daily transactions.

[bits4books]

I think that tax is good. Introducing a tax on something, we recognize the crypt and as a consequence we fix the status and rules. From the gray sector, the tax allows the bitcoin to go into the legal business process. We give citizens the opportunity to pay taxes in return to recognize their income as legal.

[Yurkov]

That depends on country but i cannot see world with crypto which will be legal worldwide without taxes cause goverments must find some way to earn profits from making crypto legal in their country.

[smiledeveloper]

 Hey Buddy,

Tax law vary from country to country. So it's all about local laws. I never pay taxes on bitcoin.
If you using bitcoin for online purpose such as online shopping then you never have to pay any single taxes.

[Eleven86]

It depends upon the country which you resides, in your country if government put tax for bitcoin then you have to pay tax it is necessary. I think most of the country couldn't put the tax for bitcoin. Few countries now put tax for bitcoin, so its purely depends upon the government of the country.