BITCOIN TAXES

[JerryOfNature]

Do people have to pay taxes on Bitcoin?

[1714180021]

1714180021

[1714180021]

1714180021

[BitMaxz]

Read this below this might be what you are looking for.

https://www.irs.gov/pub/irs-drop/n-14-21.pdf

This is a good link! IRS refers to cryptocurrencies as "Convertible Virtual Currency", which must align with their term for other means of exchange.

Their thoughts on the tax treatment for coin mining:

Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer
resources to validate Bitcoin transactions and maintain the public Bitcoin
transaction ledger) realize gross income upon receipt of the virtual currency
resulting from those activities?

A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value
of the virtual currency as of the date of receipt is includible in gross income. See
Publication 525, Taxable and Nontaxable Income, for more information on taxable
income.

Q-9: Is an individual who “mines” virtual currency as a trade or business subject
to self-employment tax on the income derived from those activities?

A-9: If a taxpayer’s “mining” of virtual currency constitutes a trade or business, and the
“mining” activity is not undertaken by the taxpayer as an employee, the net earnings
from self-employment (generally, gross income derived from carrying on a trade or
business less allowable deductions) resulting from those activities constitute selfemployment
income and are subject to the self-employment tax. See Chapter 10 of
Publication 334, Tax Guide for Small Business, for more information on selfemployment
tax and Publication 535, Business Expenses, for more information on
determining whether expenses are from a business activity carried on to make a profit.

[Decimation]

Although @Bitmaxz already supplied a good source of information, I'll just give a TLDR. The short answer: Yes, you absolutely have to pay taxes for your Bitcoin. If you are a trader, you have to be especially careful because you technically need to pay taxes on every transaction you make. It's important to keep logs of all the transactions you do, recording time, date, amount, reason, etc. It's always better to be on the safe side with this stuff, so more information doesn't hurt!

[jackg]

Yes you have to pay taxes but certain rules apply. If you're holding bitcoin or continuously changing between fiat and bitcoin, you only have to pay tax once you withdraw your pforits in the UK so this probably applies to quite a few other areas too.

You have to check with your local laws, if you state your country we might be able to help better.

[HCP]

The more correct answer is: "It depends on your location and the rules that your specific country (and/or state) has"

You will need to check with the government tax office for your location to see what rules apply and whether or not you have to pay taxes on gains from cryptocurrency transactions.

[DdmrDdmr]

<…>

It’s a country specific feature, varying the circumstances and amounts from one country to another.

In my country, for example, the simple answer that applies would be a yes, but determining what percentage applies, and if it only applies to cryto converted to FIAT is not properly detailed, thus the tax inspectors themselves may yet have different criteria amongst themselves. The general rule though would be to apply a 19% - 23% taxation on crypto to FIAT conversions.

Nevertheless, trading theoretically has to be declared too, even if you do not convert to FIAT (you declare for the amount that you "earned" – considering the increase in position by end of year). That would, in principle, also account for a simple purchase of BTC and the use of it to buy ETH for example.

To complicate matters further more, the origin of the crypto itself could have different taxation rules, as each method could have specific legal considerations (i.e. mining, trade, ICOs, airdrops, campaigns, etc.).

[Lucius]

As others say it depends where you live, so you should make some research on internet, or visit your tax office. In some countries cryptocurrency is not regulated, there is no rules about tax, so why would you pay anything if no one asks of you to pay?

Some countries as USA have very strict laws regarding cryptocurrency, where user need to report every trade, but also any buying / selling of goods or services with crypto. On the other side of the world we have Germany which is sometimes called "European crypto paradise" because users pay 0% tax if time from buying to selling is more then 1 year.

I also know that in some other EU countries you can buy / sell your crypto and completely legally not pay any tax, there is not even any time limit.

[(o)(o)ilikeboobs(o)(o)]

In my country, it's illegal to buy or sell anything by bitcoin, but buy or sell bitcoin is legal and we all have to pay taxes every single trade, and it's so expensive cause bitcoin is listed to be a special goods

[LTU_btc]

You should be more specific and clear when making questions, but in general, answer is yes. In most countries people have to pay taxes for Bitcoin and otger cryptocurrencies. But in all countries all these regulations are different, so I suggest to talk with local experts to get correct information. For example in my country you don't have to pay taxes for crypto that you hold or transferring. But once you change it to fiat and withdraw it, you have to pay fixed % tax based on your profit.

[Zionatin]

As long as you don't convert to fiat you fine. Crypto doesn't adhier to any laws and that is the entire point of it. It is currency for the people by the people. It is not goverment issues. Besides Trump just told us it is backed by nothing and has no value so clearly there is no tax to pay on play play money rigtht.

No government in the world has a bitcoin address to pay taxes too. I don't know why people are so uptight about this. Just relax. Your tax money will just be wasted on build a war around the country anyway.
I believe paying tax is unconstitutional since they piss the money away and it benefits noone. In such cases, you could say that paying tax is not being patriotic to your country.

[AitorMarcos]

loool who pays taxes for bitcoin? I think that no one does it. it's strange at least

[dothebeats]

loool who pays taxes for bitcoin? I think that no one does it. it's strange at least

It's not strange actually, it's just that no country has ever given a full framework giving bitcoin a category on tax. I myself am looking at ways on how to voluntary give my tax with the bitcoins I earned from trading, but then again the commission that handles the task on our country hasn't advised me to do anything, though I still pay taxes on my businesses which is different from what I earn in bitcoin. It's not that I'm pro-government, it's just that it's my simple way of giving back (even though I know that the bulk of the money goes to corrupt officials but hey, I did my part.)

[Krsps]

I hope not. Now I am wondering if you transfer money out of your bank account to coinbase, and then make a profit and transfer a portion of profits back to your bank account, if you pay taxes on that amount? But as I understand it would have to be a lot before you pay taxes.
On the other hand, a bank that gives you bonuses of $500 to join their bank, and you do end of paying taxes on that.

  

[squatter]

loool who pays taxes for bitcoin? I think that no one does it. it's strange at least

Here's some bedtime reading for you: IRS Agent Who Took Down ‘Silk Road’ Turns His Attention To Recreational Bitcoin Investors

I won't tell anyone to pay their taxes -- I hate taxes. But it's probably good to keep in mind that it isn't 2013 anymore. Governments are getting a lot more sophisticated about cryptocurrency. I'm not sure about other tax authorities, but the IRS is working with blockchain analysis companies, subpoenaing exchanges, and building cases.

Stay safe out there!

[The3max]

I don't think there is any government that can tax the bitcoin, it uses it on blockchain technology, transparency and security. If you want to tax, perhaps for banks, transactions are controlled by the bank, if the amount is too large, you need to find a reason for explaining where the money is with the local bank and agency. . If your country has no legal form for Bitcoin, you will be accused of a money laundering crime and subject to personal tax.

[Febo]

Do people have to pay taxes on Bitcoin?

It totally depends where you live. You follow those rules and pay taxes there. So you should ask people from your country or state how it is. And if still confused ask your tax agent. In community where you live are employed people to help you. Yes they might have no ideas. But still it is their job to learn and let you know.

[Krsps]

Yes, and as in all cases of the larger the size of the transaction and the more frequent the activity would be sure to attract more attention, especially if you are transferring to your bank account. It would be interesting to see exactly how extensive and detailed the investigation of of "recreational bitcoin users, " is.

[dantejan]

Although @Bitmaxz already supplied a good source of information, I'll just give a TLDR. The short answer: Yes, you absolutely have to pay taxes for your Bitcoin. If you are a trader, you have to be especially careful because you technically need to pay taxes on every transaction you make. It's important to keep logs of all the transactions you do, recording time, date, amount, reason, etc. It's always better to be on the safe side with this stuff, so more information doesn't hurt!

Thanks for this information. I have wondered about taxation, and it seems like its pretty straightforward like most assets one would trade or acquire.
I think a lot of people make assumptions about crypto taxation because they think somehow its outside of the purview of the IRS, but assets don't need to be dollars or stock equity in order to be taxable, they tax cars, paintings, raw materials, so yeah crypto is the same.

[boyptc]

loool who pays taxes for bitcoin? I think that no one does it. it's strange at least

There are.
--> https://www.coinbase.com/bitcoin-taxes#paytaxes