Let's Talk Taxes

[spyda5556]

Ok this is something that hits us all but when it comes to cryptocurrency there is a allot of uncertainty about how taxes will be enforced. There has been some news about different U.S. dollar amounts such as $10,000 at which taxes will be enforced or a certain amount of bitcoins traded such as 1 bitcoin at which taxes will apply. The majority of the news is based around cashing out on exchanges such as coinbase.
Based on what you have learned what do you think is the most likely scenario when it comes to cryptocurrency taxes in the U.S.?
Or comment on when do you think this will be clarified by the governing bodies?

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[metenjean]

Income tax has become a dilema especially in cryptocurrencies however speculating about how government will take how much percentage of tax due to how much coins we have or trade doesn't sounds really fair since decentralized and annonymity were included and theres no way to deduce it someone really owns it or even trade it at the first time. I don't live in US but if government really apply cryptocurrency taxes in anywhere then they have to make sure they can calculate and measure how much someone really worth first.

[jrrsparkles]

I am not a US citizen,to be honest I never paid any taxes regarding my crypto investments because I didn't cashout much money yet,I just cashout only when I am need in emergency because I am already doing some business where I can cover all the expenses.In case if I need to cashout all the bitcoins I have do I need to pay the taxes to the governments other than the incomes tax?

[Dimon8]

When the crypto-currencies will be used by all countries, the governments of the countries will quickly come up with how to levy taxes from crypto. It is too early to speak about figures, but this is already being discussed by many international organizations.

[odri777]

In order to tax the crypto currency, the state should at least how to legitimize it!

[kidamazo]

I hope that my country would not put tax on bitcoin earning, but as far as I know living in my area it is almost impossible that they will do that most likely they will put another most taxis.

[gandhe83]

Income tax has become a dilema especially in cryptocurrencies however speculating about how government will take how much percentage of tax due to how much coins we have or trade doesn't sounds really fair since decentralized and annonymity were included and theres no way to deduce it someone really owns it or even trade it at the first time. I don't live in US but if government really apply cryptocurrency taxes in anywhere then they have to make sure they can calculate and measure how much someone really worth first.

Taxation is a requirement of every country in the world. The use of reasonable taxes is essential for our human beings. However, there are more things to be aware of when taxes come in many forms.
In many places they still have tax fraud to their own benefit, not transparent. Therefore, the tax collection should be transparent in the light, avoid bad phenomena.

[spyda5556]

In the U.S. they have a way of going back in time to collect tax when large amounts of money go accounted for. So I would be cautious when it comes to cashing out through easily traceable and well known venues like Coinbase. That way you make it harder for the government to just run an automated tax for any exuberant amounts of money cashed out on coinbase.

[MainIbem]

The government is not thinking smartly when it comes to cryptocurrency tax. There are multiple ways of taxing people. There is direct and indirect tax. When it comes to cryptocurrency tax, I think the better option is indirect tax because of the complications of identity. More so, not all balances in a wallet is as a result of profit.

It is easy to avoid or evade direct tax, but everyone pays tax indirectly via VAT, levies, etc. So the government should concentrate on indirect tax. However, the exchanges makes profit and it is easier to tax such entity than the individual wallet holders.

[Mpamaegbu]

I think sincerely that taxes in cryptocurrency will come as interest rates just like banks do. It would be changed based on per Satoshi. It shouldn't matter how small or big anyone is cashing out. I don't see any issues with that. The government sees to that and I don't think it will be any problem for American citizens who are already used to paying taxes.

[Janation]

Income tax has become a dilema especially in cryptocurrencies however speculating about how government will take how much percentage of tax due to how much coins we have or trade doesn't sounds really fair since decentralized and annonymity were included and theres no way to deduce it someone really owns it or even trade it at the first time. I don't live in US but if government really apply cryptocurrency taxes in anywhere then they have to make sure they can calculate and measure how much someone really worth first.

It will be hard for the government to track how much does one Bitcoin users have. I guess it might be applied on some exchange but if that certain user are a holder, the government will just let him pay a small fee that will be unfair.

Some users especially the whales usually transfer thousand of Bitcoin annually, changing from wallet to wallet, if tax will be applied, it will be only for exchange and not for transferring BTC wallet to wallet.

[maculeth]

talking about tax in the crypto world, tax should not be high then it can be accepted. imagine when someone makes a transaction using bitcoin and is subject to a tax of 0.1 btc, that is a fairly large amount. if the government regulates bitcoin and crypto tax issues, 0.001 is probably an ideal value.

[Camster]

Taxation = theft.  I'm not sure if most people will skirt the issue and get around paying taxes or if most will pay.  If one was smart and go through Monero then cash out locally how would they ever know?  Undercover agents world wide?  Seems this will always be an issue for governments.

[ecnalubma]

If the government is after crypto taxes then why scrutinized this industry that much? I think they must be loose with their rules and not be to harsh to small investors and must start cracking up price manipulators, I'm not against taxation but it should be implemented fair.

[ice18]

They already imposed tax on local exchanges when they filed their own business license and this exchanges already included this tax on fees for converting crypto into fiat thats why IMO no need to imposed tax on cryptocurrency holders.   

[Aiiimm]

Paying taxes is requirement that should obey. It is usually applied to those who have big establishments like restaurants or any kind of houses that causes high expences.

[2start]

I strongly disagree if bitcoin is taxed. the government has gotten a lot of money from taxes. why does bitcoiin have to be taxed, bitcoin does not render the government.

[StevenGibson1212]

The history of tax development
Egyptian farmers confiscated for not paying taxes. (Pyramid age). The first known system of taxation was in ancient Egypt around 3000-2800 BC during the first dynasty of Egypt in the Old Kingdom of Egypt. The earliest and most common form of taxation is corvée and tithing. Corvée has forced labor to provide the state by too poor farmers to pay for other forms of taxation (labor in ancient Egypt was a synonym for tax). Records from the time document that Pharaoh will perform a biennial tour of the kingdom, collecting decimals from the people. Other records are detailed receipts on pieces of stone and papyrus. Early tax is also described in the Bible. In Genesis (chapter 47, verse 24 - New International Version), it says, "But when the plants come, give a fifth to the Pharaoh. Food for yourself and your family and children. " Joseph told the Egyptians how to divide their crops, providing part of the Pharaoh. A portion (20%) of the crop is taxed (in this case, a special tax rather than a regular tax, as it is collected against the expected famine).

[Abeey4life]

It's possible for Bitcoin to be taxed here in my country, I believe that it will boost the economy growth in the country.

[jambul_kribo]

I strongly disagree if bitcoin is taxed. the government has gotten a lot of money from taxes. why does bitcoiin have to be taxed, bitcoin does not render the government.

you right bitcoin unnecessary to regulated. but the certainity of investors money is needed.there is no other way for us if we want certainity in cryptotrading.imagine while we on trading , and exchange closed by goverment.all investors loss their money.