Converting Bitcoins?

[NatureMoves]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

[1715406923]

1715406923

[BrewMaster]

there is no difference between ETH or GUSD or other altcoins. if the tax laws say you have to pay taxes when you trade your bitcoin with altcoins then you have to pay taxes no matter which altcoin you choose.

[NeuroticFish]

If indeed Bitcoin->Ethereum is taxed, Bitcoin->GUSD will be no different.
But best would be to discuss with somebody specialized in taxes from your country (which you didn't specify), instead of relying on the guesses over the internet.

[AakZaki]

in which country do you live. Whether crypto traders fall into the taxable category. In my country there is no tax for crypto traders. The regulations set by bitcoin are also limited to commodity trading. The taxpayer is a local exchange that accommodates all merchants.

[seoincorporation]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

If you convert Bitcoin to ETH that shouldn't be taxed, the only moves that should be taxed are when you buy and sell cryptos for fiat.

In my country, if I spend $1000 in bitcoin, then it goes up and I withdraw $1100, I have to pay tax just for the profit, In other words, I have to pay 16% of $100. That's how it works here, you should read about how does it works in your country.

[blockman]

Check your country's taxation rule. As for the other countries, you will be taxed no matter what you convert as long as your case and status are in profit.
Each country's taxation for crypto is different but there could be similarities, still check it first.

[NatureMoves]

I am in the US, looks like I have to pay tax if I convert GUSD to Bitcoin. I have earned GUSD interest in Blockfi so I guess I just kinda have to leave it alone or else I have to pay taxes 😳

[jrrsparkles]

I am in the US, looks like I have to pay tax if I convert GUSD to Bitcoin. I have earned GUSD interest in Blockfi so I guess I just kinda have to leave it alone or else I have to pay taxes 😳

Yes you need to pay taxes for every kind of earnings related to cryptos, but there is tax slab so if you made less than that then you no need to pay taxes, all you need to do is just to report.

[blockman]

I am in the US, looks like I have to pay tax if I convert GUSD to Bitcoin. I have earned GUSD interest in Blockfi so I guess I just kinda have to leave it alone or else I have to pay taxes 😳

Then that's it. On the Legal section, there were similar threads that have asked for the same thing. Just like this thread and read some insightful replies there which answer your question.
(https://bitcointalk.org/index.php?topic=5308189.0)
Go through each of the replies there, there were plenty of helpful explanations.

[ReiMomo]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Here is a good article that could be helpful if you will read it.
https://www.cnbc.com/2021/02/19/do-you-owe-taxes-on-bitcoin.html

And yes, you will able to pay tax in any crypto you have either bitcoin or altcoin, which is still the same asset. As the article said, even you purchase and pay for food and any services that offered bitcoin payment, you still have a tax liability.

So, even though how converting you will be made, you are still reliable to pay tax and IRS will always be there for you to oblique to pay tax.

[Matimtim]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Im curious of about paying tax. Is there is a country who has a laws ordering that every crypto transaction must pay taxes? Because I think  being crypto user's paying taxes to the government about crypto currency transaction is depends on us,  or we let the government know our transactions, then in that time we need to pay taxes.

[jrrsparkles]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Im curious of about paying tax. Is there is a country who has a laws ordering that every crypto transaction must pay taxes? Because I think  being crypto user's paying taxes to the government about crypto currency transaction is depends on us,  or we let the government know our transactions, then in that time we need to pay taxes.

Not for every transaction but for every conversion which means you need to report every trade on KYC submitted exchange and also calculate taxes for the profits made from the trades even though you didn't convert them into fiat. You can avoid tax by using p2p or decentralized exchange but its your decision though.

[Jackl87]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

I guess the rules regarding taxes on trading bitcoin or cryptocurrencies are dependent on where your residence is. In germany for example the profit that you made is free of taxes if you buy and then hold your coin for at least a year. So no trades in this time, no staking and also no liquidity providing and of course you need to prove that the wallet where the coin is owned by you. So every trade even if it is for stable coins interrupts that 1 year span.

[Teraboy]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

You will always send repot to the IRS, you will always be taxed based on your report about owning cryptocurrency. it will be useless even you are converting it hundreds times.

You will never able to avoid the taxation by IRS or you will face a big problem.

[Eureka_07]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Is their any tax for exchanging Bitcoin to your region? What region do you belong? In our place, we just worry for the exchange fees that trading platforms are deducting when we are doing some trades. Make your first that converting so is taxable to your country, if not, there's ko need to report.

[Maslate]

If it happens that crypto taxes have been applied to your country, no matter what you do, you have to pay it.

Why you are worried about paying taxes? Have it cost you a lot and that gives a reason for you to escape? If that is not the case, better help yourself to accept it.

Anyway, maybe we are lucky that it never happens to our country and we pay no taxes for anything we do about our cryptos. But I was expecting that kind of scenario in the coming days especially when major/big companies are joining then.

[michellee]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

If you convert your bitcoin in the exchange, you do not get taxed because you trade it, and that will happen too if you convert it into GUSD. But if you send the money from the exchange or the other third party to your bank account, you might get taxed and you need to pay that taxes. Maybe you need to ask your regulator or government who is in charge of that thing so that you can get the right answer.

[shinratensei_]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Just pay the tax and you will be fine or when you are avoiding paying the tax and you may need to read this article

https://www.cnbc.com/2021/02/24/failure-to-report-crypto-on-tax-returns-can-lead-to-trouble-with-irs.html

If you hold a stablecoin such as USD Coin that is valued at $1, and you bought it for exactly $1, you have no gains or losses when you sell out of that stablecoin. So while technically stablecoin transactions are taxable and still reportable, there’s no gain or loss to claim.

source: https://www.coinbase.com/learn/tips-and-tutorials/crypto-and-bitcoin-taxes-US

It's clear that even if you are owning all kind of stable coins and you should have reported it on your tax report.

[Cling18]

I think things will depend on the country of your location. There are some transactions that are being taxed based on your place and the sad part is, you can't scape from it. We're just too lucky because we're not being taxed in our country so, despite the high fees, we could still handle each transaction.

[xZork]

Ok so if I convert Bitcoin to Ethereum I know I will be taxed. If I convert Bitcoin to GUSD, will I also have to report that to the IRS so I will be taxed?

Which country are you from
I've never heard of a switch between two cryptocurrencies taxed, people usually do it at exchanges and they only incur a small fee.