Please DON'T pay any taxes on your crypto!

[candra raditya]

If that has become a rule that has been set by the government, I think it is better to obey the rules to pay the taxes that have been set, than it will be difficult behind.

[1714193316]

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[1714193316]

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[cryptovigi]

...
Hmm, i think you have a point since if you were just holding that coin even if the price increases and you already can have your profit. It is still not yet to be considered as an income.
...

In my country, regulations regarding cryptocurrency taxes have recently been established. According to the current state, the profit from the sale of crypto on Fiat or the purchase of material goods for crypto is taxed.

In other words, as long as I keep cryptocurrencies or trade them - I exchange one cryptocurrency for another, nothing is taxed here. The tax may appear only when the funds leave the "crypto ecosystem".

While the taxation of profits when exchanging cryptocurrencies for fiat is simple, the profit when buying goods for the crypto is already problematic. If I put $ 1,000 on the crypto market and after a few transactions I collect 2btc and then buy from someone at the auction the old carpet for 2btc what amount should be taxed - convert btc to fiat according to the exchange rate of the day (but wait after all the btc course is not stable - what if btc will jump or fall on this day by 30%) or maybe you should check the actual value of the old carpet only how to check the actual value of the thing used ...

As you can see, despite the fact that the regulations are fixed, their use in practice can be very difficult ....

[bhabygrim]

Nope if my country demands for it then I should pay for it,
I don't want to end up in jail just for tax evasion.
And also I don't think that they would implement it.

[darklus123]

In my country, regulations regarding cryptocurrency taxes have recently been established. According to the current state, the profit from the sale of crypto on Fiat or the purchase of material goods for crypto is taxed.

In other words, as long as I keep cryptocurrencies or trade them - I exchange one cryptocurrency for another, nothing is taxed here. The tax may appear only when the funds leave the "crypto ecosystem".

While the taxation of profits when exchanging cryptocurrencies for fiat is simple, the profit when buying goods for the crypto is already problematic. If I put $ 1,000 on the crypto market and after a few transactions I collect 2btc and then buy from someone at the auction the old carpet for 2btc what amount should be taxed - convert btc to fiat according to the exchange rate of the day (but wait after all the btc course is not stable - what if btc will jump or fall on this day by 30%) or maybe you should check the actual value of the old carpet only how to check the actual value of the thing used ...

As you can see, despite the fact that the regulations are fixed, their use in practice can be very difficult ....

Then I might still consider that the regulations with regards to taxing your crypto is not efficiently build. Why? it is because as you have stated taxes are only being perform when it involves FIAT. Therefore the regulations are still basing on the FIAT ecosystem and not specifically on the crypto's ecosystem.

Therefore I can also still conclude that the regulations for taxing crypto incomes or profits are still not yet established and as of the moment the government is only linking their current regulations from FIAT to crypto so they could atleast get something from the crypto holders and  still doesn't have a control on the other things. Which is actually good in our part since this is exactly the reason why most of us are using this technology. It give us   a lot of benefits and one of that is the bias control of government

[Ipwich]

Nope if my country demands for it then I should pay for it,
I don't want to end up in jail just for tax evasion.
And also I don't think that they would implement it.

As soon as they will implement, we have no choice but to comply.
We don't have to pay taxes if there it's not required, that's the advantage of using crypto since it has to be fully regulated first before they can
demand tax from us, and if we are living in a 3rd world county, regulation could be late and therefore we have more time to enjoy our tax free income.

[BitcSeo]

Why should they? Everybody in this world needs to pay his taxes. It is against the law if you are not paying your taxes it could get you jailed. And if we are talking about growth of bitcoin, if this thing could help in the growth of btc then it's a good choice to pay in btc.

@Xenrise, 

".....It is against the law if you are not paying your taxes it could get you jailed. And if we are talking about growth of bitcoin, if this thing could help in the growth of btc then it's a good choice to pay in btc...." 

Well, they should come and collect the tax from my wallet!!

Oh i never knew we have so many good & civilized people on this forum !!

Well, FYI, being good is not enough because paying tax on money generated from sale/trading of btc could end-up getting people into financial prison. Unfortunately, most people prefer to be financially broke to go to prison.

*I prefer to go to physical prison but, get my wallet fill with coins, no payment of tax of whatsover afterrall, our society is not getting any better for being simple & good citizen which those folk's expected from us.

Bitcoin has come to librate the people because we are living in time when the world economy will keep sliding donw. This is also one of the reason why there are lot of article's in regard's to crypt-currency.

Thanks

[cryptovigi]

...
Then I might still consider that the regulations with regards to taxing your crypto is not efficiently build. Why? it is because as you have stated taxes are only being perform when it involves FIAT. Therefore the regulations are still basing on the FIAT ecosystem and not specifically on the crypto's ecosystem.

Therefore I can also still conclude that the regulations for taxing crypto incomes or profits are still not yet established and as of the moment the government is only linking their current regulations from FIAT to crypto so they could atleast get something from the crypto holders and  still doesn't have a control on the other things. Which is actually good in our part since this is exactly the reason why most of us are using this technology. It give us   a lot of benefits and one of that is the bias control of government

You've right but today I can't imagine any different solution. The world of cryptocurrencies is not independent and does not work in isolation from the real world. The only tax that can be applied is the income tax. And a relatively stable reference point is necessary to determine the income. Today, cryptocurrencies are subject to high fluctuations and their use as a reference is debatable. After that, we have thousands of them so what solution to take - choose one of them, for example bitcoin and refer to it profit or loss. And if we gain 50% in bitcoin and at the same time bitcoin will fall by 90% (that is, we will actually lose 85% in dollars), we should still pay tax on our loss - then we would lost everything we put in crypto and should add some more extra funds to pay tax.

You probably read an article about a student who invested $ 5,000 in ethereum and in November his cryptocurrencies were worth $ 125,000 but he had to pay as much as $ 400,000 tax - it's insane.

https://www.ccn.com/tax-nightmare-student-invested-5k-in-ethereum-now-owes-400k-in-taxes

So in fact today's cryptocurrency taxes connect to the Fiat system, but any other solution is unacceptable. Maybe in the future, when the cryptocurrency world will develop very much and it will start to function independently - in a complete separation from fiat, other solutions will be possible ... but not today ...

I don't think so we should pay any taxes for our crypto currencies because we are already paying taxes from our fiat money and other services,however, everyone has his own perspective.

Yep for example if you live in Europe first you pay tax from your income, then you pay another Value Added Tax buying any service or goods, (and some of them includes in their prices also some other taxes like road tax in gasoline price, or excise tax in price of cigarettes or alcohol  and many others) so today you pay taxes many times while buying one good/service.

[BitcSeo]

If government put a tax on crypto you don't have no choice you need to pay tax every time you use crypto or for your every crypto wealth. I'm sure that time will happen because government will see that we are really have a good profit in investing crypto and we are not paying tax but right now if we think we already paying in continously increasing of charge in our bitcoin transactions.

Well, they can't except for individual or some group of people who might just want to declare any transaction associated with btc

just like the tried banning btc a few year's back only to find out that such action may lead to inflation within the market.
From series of comment(s) above it seems most people, i donot fully understand how bitcoin work!!


Regard's

[Apes]

I better pay taxes. I don't want cryptocurrencies to always have a bad image by not paying taxes. isn't tax avoidance a criminal act. avoiding and not reporting taxes can face a prison as punishment. you should be careful in dealing with tax law. at least it can still help state costs in continuing to support development by paying taxes.

[gesdan]

if someday there are policy that makes all people in the world to pay a tax by using bitcoin and holding bitcoin i think we should do that, we should pay the taxes like the policy. and we should honest because i believe that bitcoin and blockchain system can't traceable and maybe it will missed tracking by system

[shield132]

if someday there are policy that makes all people in the world to pay a tax by using bitcoin and holding bitcoin i think we should do that, we should pay the taxes like the policy. and we should honest because i believe that bitcoin and blockchain system can't traceable and maybe it will missed tracking by system

It's possible to pay taxes in bitcoin if you live in Ohio, lately they accepted it. Bitcoin and blockchain technology isn't traceable? Well, don't you know that every transaction is recorded and stored on blockchain? Also OP is far from actual idea, you have to pay taxes anyway if you have crypto business like exchange or etc but if you own wallet at home, believe me no one will ask you to pay any tax.

[pushups44]

The IRS has increasingly sophisticated tools to track cryptocurrency transactions, so it's best to just pay what you owe. Besides, if you are a long-term holder and make a profit, the tax rate is pretty reasonable. There is no point in risking jail time and fines just to save a small sliver of your gains.

[Tramle091296]

Even you dont want to pay tax and so many reason in your mind to tell to police. they can know that your lying because on the last part you cryptocurrency will go to bank and can detect where your money comes from and this will give you a lot to explain and in the last part you will be caught for not paying taxes much better to pay it because in the end you will suffer on the consequences.

[TimothyKnox]

Why not pay any taxes? This is necessary in a growing country and I think I’d better to pay the taxes than to be punished later on. So i think you have to follow the law and make a good contribution to your government, its good to be good sometimes.

Agree with you, but this depends on one government to another. There are a lot of governments in this world who steal our taxes for their personal needs!

[qwertyup23]

This is highly misleading as tax evasion is a serious crime that could lead to being sentenced in jail for years including a fine. Whatever the stipulation of the rules or laws in your country regarding cryptocurrency, you must faithfully adapt and embrace its texts and follow it religiously. Regardless of what the nature of bitcoin may be, it is not an excuse for someone to disobey the law.

I better pay taxes. I don't want cryptocurrencies to always have a bad image by not paying taxes. isn't tax avoidance a criminal act. avoiding and not reporting taxes can face a prison as punishment. you should be careful in dealing with tax law. at least it can still help state costs in continuing to support development by paying taxes.

The stigma about cryptocurrencies started when people utilized it for that illegal means, which also includes tax evasion. People have been spreading fake news which contributes to its reputation being a scam to the public. Unfortunately, these spreading of news affects the price in general in attracting investors.

[OrangeII]

Even you dont want to pay tax and so many reason in your mind to tell to police. they can know that your lying because on the last part you cryptocurrency will go to bank and can detect where your money comes from and this will give you a lot to explain and in the last part you will be caught for not paying taxes much better to pay it because in the end you will suffer on the consequences.

well, maybe this will apply when the government has given regulations regarding this matter. however, as long as there are no rules regarding taxes to be paid from bitcoin, or altcoin users, I think it's natural that we don't pay them. moreover we do not know what the tax is for.

[Xenrise]

Base on what you are saying, you are evading paying taxes and you might get to jail because of tax evasion. Is jail is just a room for you? Pay your taxes. Follow the rules, it's just a simple tax.

[princeyeboah]

I am not against the idea of tax but I don't know how the governments will track every crypto user and all the transactions in order to tax them. But for indirect tax, every crypto user cannot escape it because the centralized exchange sites are taxed and these taxes are indirectly paid by traders through the trading charges on the exchange.

[bitbunnny]

I think that most of countries don't request paying taxes on Bitcoin itself, only on transactions. But even if the law is different I don't think that you can decide whether to pay taxes or not, it's then the legal obligation and for avoiding it you might get punished.
But because of the lack of regulation about cryptocurrencies in many countries this area still isn't designed properly and Bitcoin users don't have much obligations to the authorities.

[darklus123]

You've right but today I can't imagine any different solution. The world of cryptocurrencies is not independent and does not work in isolation from the real world. The only tax that can be applied is the income tax. And a relatively stable reference point is necessary to determine the income. Today, cryptocurrencies are subject to high fluctuations and their use as a reference is debatable. After that, we have thousands of them so what solution to take - choose one of them, for example bitcoin and refer to it profit or loss. And if we gain 50% in bitcoin and at the same time bitcoin will fall by 90% (that is, we will actually lose 85% in dollars), we should still pay tax on our loss - then we would lost everything we put in crypto and should add some more extra funds to pay tax.

Then if I will be directly using bitcoin or any crypto funds to by goods that I can consider as my assets, I can now simply evade paying my tax. That is the main reason why I have told you that the laws with regards to cypto taxation is not yet established.

You probably read an article about a student who invested $ 5,000 in ethereum and in November his cryptocurrencies were worth $ 125,000 but he had to pay as much as $ 400,000 tax - it's insane.

https://www.ccn.com/tax-nightmare-student-invested-5k-in-ethereum-now-owes-400k-in-taxes

So in fact today's cryptocurrency taxes connect to the Fiat system, but any other solution is unacceptable. Maybe in the future, when the cryptocurrency world will develop very much and it will start to function independently - in a complete separation from fiat, other solutions will be possible ... but not today ...

That only solidify my statement that even if we are using the current FIAT system this are still not being properly enforced or performed. The person who actually computed the tax that was given by that student is purely proves their ignorance with this technology.