Do people have to pay taxes on Bitcoin?

[imrul5]

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.

Thanks for the info. It is really sad to see bad effect on cryptocurrency market.  Tax definitely a good for Any state but this is not the time to impose tax on BTC or any other cryptocurrency.

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[richardsNY]

Tax definitely a good for Any state but this is not the time to impose tax on BTC or any other cryptocurrency.

If you look at things from that perspective, when will it ever be a good time to impose tax on crypto? Every attempt by the government to impose tax is bad timing for you and me. Just admit it, no one likes to pay tax with how unfair everything is set up -- there is no one other than the state that benefits from tax income. I'm not much of a believer in the theory of governments using tax income within the country to benefit the country. Maybe that a small percentage of it is put to good use, but what about the rest? The far majority of our money is being put to work in places we don't want it to be put to work. I haven't seen much improvement where I live in the last 2 decades -- everything is going backwards real quick....

[frankiemalton]

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

[darkangel11]

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

I don't like the name virtual currency because it implies that it doesn't really exist. It acts like something that it really isn't. Cryptocurrency or electronic currency are much better names.
In most countries you don't have to declare unrealized income at all. You can understand unrealized income as something that is virtual (the word fits much better here), but does not exist in any fiat currency or tangible goods. Once you exchange it, sell it for something, that price times the amount of coins becomes your taxable income. The problem is that some governments (mainly the US) are trying to make you report unrealized gains. Thankfully I don't live in the land of the virtualy free

[sunsilk]

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

It may not exist as tangible form but it has value that you can gain after selling it and taking part of it into fiat money.

darkangel11 explained it very well so if you are living in a country that pushes you to declare a gain that came from crypto's then you are obliged to do so.

But in most countries, this isn't an issue it doesn't matter to them if your income came from crypto's or anything legit and legal online. I guess it's a matter of jurisdiction and your government's ruling about it.

[BitHodler]

The problem is that some governments (mainly the US) are trying to make you report unrealized gains. Thankfully I don't live in the land of the virtualy free

I fit in the same category and I'm from Europe. If that isn't enough, I am also forced to pay tax over my total holdings on a yearly basis. Even if my wealth tanks hard I still have to pay tax.

It basically means that if you have €100,000 on your bank account, you regardless of the situation have to pay 1.5% over that capital every year. In other words, having money costs money, which is completely retarded.

I am not entirely against paying tax, but this form of taxation is actually theft. Calculate for yourself how much of that €100,000 is left after years and years of paying 1.5% in tax.

[Ayston]

Paying taxes on crypto depends on your government, if you have a tax law regarding with crypto then you need to pay since its compulsory, but if there is nothing then why not enjoy the freedom of not having! because in the future all crypto might undergo surveillance for tax monitoring.

[Zohina]

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 my opinion, the owner of BTC or criptocurency may be taxed but the taxes are subject to taxes on sale and purchase transactions, because if the property tax is incorporated it is very difficult to detect ownership and it can encourage people to conduct electronic transactions and can stabilize BTC prices.

[entrepmind23]

Paying taxes on crypto depends on your government, if you have a tax law regarding with crypto then you need to pay since its compulsory, but if there is nothing then why not enjoy the freedom of not having! because in the future all crypto might undergo surveillance for tax monitoring.

If you think about it in the legal sense then all your income should be taxable including income from cryptocurrencies but then some countries aren't that strict in checking the income of some people because they are busy with other things that are worth more so many people or shall I say majority of the cryptocurrency enthusiasts from our country do not pay taxes because there is no strict rule applicable to to it currently. The government may require the platform the people are using though so that it will automatically deduct taxes from the transactions and they wouldn't have a hard time tracing and collecting it individually.

[imrul5]

Paying taxes on crypto depends on your government, if you have a tax law regarding with crypto then you need to pay since its compulsory, but if there is nothing then why not enjoy the freedom of not having! because in the future all crypto might undergo surveillance for tax monitoring.

If you think about it in the legal sense then all your income should be taxable including income from cryptocurrencies but then some countries aren't that strict in checking the income of some people because they are busy with other things that are worth more so many people or shall I say majority of the cryptocurrency enthusiasts from our country do not pay taxes because there is no strict rule applicable to to it currently. The government may require the platform the people are using though so that it will automatically deduct taxes from the transactions and they wouldn't have a hard time tracing and collecting it individually.

Paying tax and doing charity  are great things. But we should keep it in our mind that cryptocurrency platform in a infant stage. Too much rules and regulations can destroy this industry. I don't think it is a right time to impose tax on cryptocurrency.

[darkangel11]

The problem is that some governments (mainly the US) are trying to make you report unrealized gains. Thankfully I don't live in the land of the virtualy free

I fit in the same category and I'm from Europe. If that isn't enough, I am also forced to pay tax over my total holdings on a yearly basis. Even if my wealth tanks hard I still have to pay tax.

It basically means that if you have €100,000 on your bank account, you regardless of the situation have to pay 1.5% over that capital every year. In other words, having money costs money, which is completely retarded.

Aren't you by a chance in Switzerland? I'm asking because what you've said fits their policies perfectly. In Switzerland you have to pay taxes even if your coins get stolen, so If you do some trades, earn some money, and the exchange gets hacked a couple months later, you still owe money to the government. Fucking leeches!

I am not entirely against paying tax, but this form of taxation is actually theft. Calculate for yourself how much of that €100,000 is left after years and years of paying 1.5% in tax.

I always say that taxes should be just and just is asking the same fixed amount of every citizen, preferably in the form of property tax. You live in the area, you pay for the infrastructure, services, and so on. Demanding money from people who have money forces them to invest, take risk and possibly suffer losses.
Percentage based income tax is pure theft, just like social security.

[BitHodler]

Aren't you by a chance in Switzerland? I'm asking because what you've said fits their policies perfectly. In Switzerland you have to pay taxes even if your coins get stolen, so If you do some trades, earn some money, and the exchange gets hacked a couple months later, you still owe money to the government. Fucking leeches!

I'm not from Switzerland, but your example also applies to my jurisdiction. It's theft for sure, but governments don't care what happens as long as it is within the current fiscal year.

I contacted my attorney to have him figure out what happens if someone miraculously gains back access to his old backups, which is a very important matter for me as long term hodler.

The point was that as long as you can prove that the coins haven't been moving, you can freely declare the value of your holdings at the 1st of January. In other words, you don't have to pay tax over the previous years.

It would suck badly if you was forced to pay tax over the last couple of years at once. I however don't know how long they are willing to keep that up if people suddenly claim to have gained access back by large numbers.

[mersal]

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

Virtual or physical,it is a currency then it has value so we need to pay taxes according to the rules of your governments.But basically decentralized means we don't need anyone's permission for using it still all government needs taxes to work properly so it is important to pay taxes to our governments even if it is crypto currency.

[yemacake]

the day will come when the bitcoin or the crypto will be available to the goverment of the different countries of the tax. especially and this is gradually being observed by the countries, the government will not be deceived.

[1Referee]

I contacted my attorney to have him figure out what happens if someone miraculously gains back access to his old backups, which is a very important matter for me as long term hodler.

The point was that as long as you can prove that the coins haven't been moving, you can freely declare the value of your holdings at the 1st of January. In other words, you don't have to pay tax over the previous years.

I hope you won't ever decide to declare your holdings. I certainly won't. I'm not going to fund criminals.

I however don't know how long they are willing to keep that up if people suddenly claim to have gained access back by large numbers.

If people start declaring their sleeping holdings together it means more income for governments, and more (extremely valuable) information about people's wealth flows.

In that regard they will not try to prevent it but even further stimulate people to keep doing it. Governments have the option to make life difficult for people and not get any tax income at all, or to make the process more easy and less stressful which results in a massive influx of tax income the government otherwise wouldn't have. It's just a matter of logical thinking in the end; governments want your money and your information.

[maarx]

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?

Need to accept when the government offers other things to its citizens on its cost. Hence citizens have to contribute to the growth of its nation as well. But the percentage can be considered and looked at. I am sure earning bitcoin is not going to cost the government. So the earnings comes through without nations intervention. Even 1 percentage of tax paid to the government on bitcoin earning is a good revenue for the government. Hence if your government asks for tax pay it. But the percentage can be considered.  

[Oasisman]

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?

Need to accept when the government offers other things to its citizens. Citizens have to contribute to the growth of its nation as well. But the percentage can be considered and looked at. I am sure earning bitcoin is not going cost the government. So the earnings comes through without nations intervention. Even 1 percentage of tax paid to the government on bitcoin earning is a good revenue for the government. Hence if your government asks for tax pay it. But the percentage can be considered.  

Percentage would always be considered, I agree with that. We dont let the Government take advantage to the popularity of Bitcoin. These was the common issues from the other country which is why people are contradicting the idea of bitcoin regulation. 10% is already pain in the ass, which majority of the people bawled for, how much more if the other countries would put more than that.

[marseille]

Bitcoin is not designed for taxes to be paid on it. I beleive the best for government maybe to tax bitcoin users and make it more popular. Just that the charges should be considerate and proportional to the excesses.

Many government agencies have gotten into the potential of tax evasion from bitcoin and crypto. Any transactions you send with bitcoin or other cryptocurrencies are taxed by default. It is very difficult to avoid taxes but for the sake of our security what can be made because this is also in our own interest because our income is still far from our spending for taxes.

[thedarksun]

As this is a virtual currency, does that mean I have to declare the sale for tax purposes? I've been told any gain is tax-free because the money doesn't really exist in tangible form.

In some countries you need to pay tax from every earning that you got so bitcoin is an earning only after selling it for a "normal" money but law is different in every country.

[Carrelmae10]

..at First, Bitcoin is a crypto currency not an asset..the implementation of imposing bitcoin taxes depends upon on the country that you belong..you need to abide to the rules on paying your taxes in your country and respect their regulations even if it is against your will to pay your tax when you have Bitcoins..