Do people have to pay taxes on Bitcoin?

[BitHodler]

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

I don't think I have much choice but to declare at least a certain percentage of my coins. How else am I supposed to use these coins to legally buy a property in the far long term if Bitcoin goes over $100k?

Maybe there are tricky and bumpy ways to get it done alternatively if I dig deep enough, but I'm not really interested in too much hassle. I know it's the easiest way out, but at least it's my decision.

Owning a property where I live has actually some tax advantages as well, so it's not that I am only losing out by swallowing a tax hit over my to be reported coins. Maybe I can even use Bitcoin to pay for that property.

Spending Bitcoin means I'm not subject to direct capital gains that would occur if I convert it to fiat.

[Seth Nyarko]

The thing is for now you won't see you are paying any tax on Bitcoin coz it's not securities. However, unless Bitcoin is added to assets it won't be taxable. Notwithstanding, once governments begin to tax all exchange sites, then they will also add it to the fees we pay when we assess their sites and that will mean we will be paying tax on Bitcoin indirectly.   

[gayletot]

today is not yet but the day is coming, when the government of each country sees the bitcoin or crypto it will have the tax. so while we have nothing to do with it.

[samarnaaz]

I think No we should not pay tax on bitcoin rather we should not pay tax for nothing it not need to pay taxes on bitcoin...

[Vishnu.Reang]

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?

So if someone gives me Bitcoins, then I am supposed to pay income tax on it? I don't think that this is a good idea. The IRS must first clarify whether they are considering Bitcoin is property or currency. If it is not currency, then we are not liable to pay income tax.

[ranman09]

I think there is nothing wrong with paying taxes as you and your family will benefit from it. I think what is wrong here is that they treat bitcoin as an asset but you used it to pay a product that is payable in fiat? I don't know it doesn't makes sense for me. Looks more like they don't want bitcoin for the masses to use.

[richardsNY]

I think there is nothing wrong with paying taxes as you and your family will benefit from it.

Ehm.... You and your family lose a chunk of wealth and that's supposed to be a good thing according to you? You won't ever see one single penny of that money back. It also won't be invested in education, healthcare, infrastructure, etc. I'm paying so much tax over my regular income (close to 50%) and other things, that I would expect to see it reflect the environment around me, but that's not happening. Even more precise, nothing but a major decline has happened in the last 10 years. We're paying more in tax than ever before but the government is still busy trying to cut costs everywhere? Makes no sense at all....

[BitcoinGirl.Club]

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?

Bitcoin prices are dynamic which makes taxing a bit complicated and unfair especially that the accounting for it id at the exchange rate you get paid at but if this is the only way the USA will allow the ctryptocurrency to be used then its not a bad idea...we just need to get used to the system.

[Skyenet]

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?

The regulations governing the taxation of bitcoin and other cryptocurrencies differ significantly in different countries. I think we must pay only for transactions, but not more.

[livingfree]

Yes and no.

Yes, if you are a law abiding citizen, you must feel grateful that you are part of the your country's living source of taxation. That what should a tax payer feels but...

No, because we know on where our taxes go.

Well my say on this is it also depends on the country if you can really see that taxes are being used properly.

[DeadCoin]

Pay as long as your respective country has accepted bitcoin and has created doors to earn bitcoin on its expense. If bitcoin is not accepted in your country then you can obviously think about paying tax to the goverment. Its not necessary to pay when bitcoin is not accepted. Few countries do have rules in tax. Abiding would not disturbe you earning bitcoin further. So think on it.

[ahiaba.john@yahoo.com]

I don't believe is a good decision to pay task on bitcoin and to be treated as property. Bitcoin does not occupy any space physically and should not be task. In another development, paying task on bitcoin give a very good ground for the people in that country to transact using bitcoin without restriction.

[Otsu]

If it will be regulated, it needs to have tax so that the development of the economy will grow and become more helpful in our society. But if it will stays in anonymous, I guess it's hard to implement it sinced there are no regulating bodies that managed this kind of investments.

[dawesa]

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?

Былo peшeнo oблaгaть нaлoгoм в 13% кpиптoвaлюты.

[heroson]

Totally depending on the country you are living in. Before it was totally tax free.Thats what bitcoin is famous for. Its just a digital money and taxing it is somehow unfair in my opinion. But no, in the USA , they started considering bitcoins like our usual properties. So they are charging tax on it as well. Hence, depending on how much you are paid through bitcoins or how much bitcoins you make, you have to pay tax in the USA. But please do concern your tax advisor to play it safe.

[Hannahanto]

There is no tax for bitcoin normally, it depends upon the country which you resides. The government announced any tax for bitcoin in your country means then you have to pay it. That's unavoidable, many countries didn't announced any tax for bitcoin eventhough it is legalized. If the government announced tax for bitcoin means then the economic growth of the country will be more wealthy than now.

[Andrew S]

We do not have to pay taxes for bitcoins.  It was created in order to bypass the tax system and use people.

[Capt00]

Bitcoin is not a fiat currency with a legitimate status in any country, but it is often bound by the tax liability rules regardless of the medium of money used. There are various laws in many countries that may result in income taxes, sales, payroll, profits, or other forms of tax liability arising with Bitcoin. in other words, I think if bitcoin is legal in your country, and you as bitcoin holder are required to pay taxes, then, you must comply with the rules applicable in your country. because if you do not, you have violated the rules of your country.

This is situational only on which country you are, there are some countries having strict policies in paying tax by their government and lucky those countries did not have any implementing rules of paying tax. Speaking of paying tax luckily we are exempted here because my country did not put any regulations in cryptocurrency money. So, the only thing we pay tax is when we buy goods.

[Tapyaks72]

Bitcoin is not a fiat currency with a legitimate status in any country, but it is often bound by the tax liability rules regardless of the medium of money used. There are various laws in many countries that may result in income taxes, sales, payroll, profits, or other forms of tax liability arising with Bitcoin. in other words, I think if bitcoin is legal in your country, and you as bitcoin holder are required to pay taxes, then, you must comply with the rules applicable in your country. because if you do not, you have violated the rules of your country.

This is situational only on which country you are, there are some countries having strict policies in paying tax by their government and lucky those countries did not have any implementing rules of paying tax. Speaking of paying tax luckily we are exempted here because my country did not put any regulations in cryptocurrency money. So, the only thing we pay tax is when we buy goods.

It depends on the country how they assess bitcoin for  the economic impact in their country, in my country bitcoin has a big impact for the remittances bitcoin as a medium of remittances is fast  and economical, that's why our government support bitcoin and apply taxation in a reasonable and accordance with the law.

[Gadhoh]

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?

the need for clear regulation of bitcoin in order for the relevant authorities to monitor its sale so as to avoid tax evasion, because to minimize the actions we do not want such as theft and murder.