Bitcoin Taxation: Major Challenge

[kitkitkit]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

[Reid]

Then why not just buy a property and let them tax you until you deplete the money that you have?

I am still against it. Let bitcoin be. They are just doing this for their own purpose and it is clear that there is no way they can make taxes from it?
New and old? How will you know that someone is just new to it? I can always say that once my bitcoin address is question or I could just mix it while sending to another wallet.

[malekbaba]

It is funny while we are trying to regulate something decentralized. Regulations are needed to make a better environment, to reduce cheats and scams as on daily basis thousands of projects are popping up. But government are not fixing those. They are just making their own ways of earning by establishing so called regulation. People with zero knowledge are investing in crypto and are losing money. BTC is my asset and I am using it in my closed community. Miners are paying bills for electricity and government want us to pay taxes. Why ?

BTC will be tax free, decentralized and Anonymous. Like selling coconut water from my own tree. I will pay taxes for my house, my income but not for my coconut water from my own trees

[feelingfroggy]

They will eventually tie your name to your Bitcoin address.  Before you tell me hell no it wont work look at all the fools signing up for KYC for a few pennies.  Now imagine the government threatening violence and jail time if you try to get around the system.  99% OBEY.  Now your stuck in the perfect tax trap with every transaction being recorded and public. 

[knien]

I generally agree that taxes should be paid.
But as long as governments keep wasting tax money by giving it to organisations that literally do nothing to contibrute to anything at all, I pay as little tax as possible.

[aoluain]

While we as a community are here because we want to avoid the control of the banks and governments
Of our funds, taxation is a topic which will always divide opinions.

In my mind i consider taxation to be necessary but it pains me to give into that fact.

If no taxes are paid or collected how would health, education, social services and emergency services
be funded? if you are not willing to pay tax should you be given access to any of the above services
which are funded by tax payers?

[vy99]

It is funny while we are trying to regulate something decentralized.

This is really the general gist of it. It'll be very hard to monitor anything that's decentralized like Bitcoin and therefore tax upon it.

[spazie]

Along with the increasing use of digital economic products such as Bitcoin, many countries around the world apply different taxation systems over crypto currencies.

[kujaroth]

Bitcoin as a property instead of being a currency means that they are still not quite sure to accept crypto like Bitcoins. One possible reason is that when they accepted it as a currency other AltCoins might follow and it maybe could break the economy.

[bitcoinVPSD]

Yes, a big challenge for both investors and the government. But if this is done, then both sides benefit. The government should adjust the most appropriate tax rates to avoid losing investor confidence in the government.

[Kenthunan_rondo]

I agree that all income from the world of crypto, from the digital trading of taxpayer assets, because the treatment is the same as the profit from the sale and purchase of goods in general.

[Zeddyn]

I also strongly agree with taxation, but whether all taxable and if we suffered losses in trade and still be taxed it will make us more loss.

[pooya87]

there isn't just one government for the whole world doing one thing! there are 195 countries in the world each with their own government and each doing a different thing. so when it comes to bitcoin and what they consider it and how they tax it, the rules are very different and when you want to talk about them you must be more specific.

for example bitcoin is considered a commodity in US, a currency in Japan, and no idea what it is in India and is banned in Bangladesh. tax is 10-20% for US, 0 in Japan if used as a currency and i think 10% if used as an investment,,....

[alizalela7]

I think we would trade if we had assets of high asset value or we were responsible for paying taxes to the state, the state would use it to develop more communities.

[HabBear]

Bitcoin is now considered by the government as a property, not an income .

This isn't true. Bitcoin is considered property by the US government, but not by every government.

Please expand your view point and recognize that Bitcion is a global currency.

This is the reason why they want to put taxes.

Again incorrect, this is not the reason why they want to tax it. They'd tax it even if it wasn't considered property! The reason they want to tax it is because governments tax economic activity...so if bitcoin represents economic activity they'll do their best to toll the transactions, i.e., tax it.

But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

Your comments contradict each other here. And the status of bitcoin's market price is ALWAYS a consideration when a property is taxed...if you sell the property for less than you purchased it for you don't own any tax on it, in fact you realize a tax credit!

Anything else?

[Dudeperfect]

Well, not every country has recognised Bitcoin yet so it is still unclear that how taxation is going to take place in major economies out there. In my country, the government has instructed banks to stop giving services to the companies involved in cryptocurrency exchange services so things are still and clear and the matter is pending in the court. Initially, the government can classify Bitcoin as an asset, currency or even as a computer software.

[Thecryptocurrency09]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

I do not know whether adding tax to bitcoin could make bitcoin live a longer life. As we all know, bitcoin is something that help stabilise or make use of this taxation to something but for the meantime will be hold. I guess this will be a bad thing specially for those who just started bitcoin.

[libert19]

It would be indeed a challenge. Recording every single trade so you can show your sheet to CA, it will be pain. However, government should only tax when user converts crypto to fiat. I believe this will be better for both parties.

[jgaspar]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

I can say that I am a little bit afraid of that because my country is one of those who can put an enormous taxation on the income that I get, if they will do this personal percentage tax, this would be awful. Somebody would not afford that.

[Jetakenare]

Tax and regulation are in themselves not a bad idea but to what purpose. Blockchain is decentralized, we who are here don't want the governments/ banks interference in our financial transactions. So for me,a definite no. And with the huge amount of transactions,it would be an uphill task for any government to try and tax bitcoin.