What if authorities launch a tax for owning bitcoin?

[Learn Bitcoin]

Who said you can't do that here either? 
Another interesting point in Portugal is that it was never banned. Therefore, everything can be done normally. This issue of taxes on profits obtained in the last year only exists at the moment - easy to deal with.

Either way, in this case you are right. If it is prohibited in the country, no exchange obtains information to give to the government. You will only have problems if you are caught in the act.

 
I didn't say you cannot do it there. But, you still have to pay taxes on your profit, right?
In this case, banned countries are a bit ahead of it  . Anyway, living in a country where Bitcoin is allowed is like living with full freedom. Paying taxes on gain does not bother unless it's too much like India. I have heard that India applied a 30% tax on Crypto gains or similar things. I don't know the details, but it's ridicules.

The bolded part is the problem. I know it's the kind of problem you're hoping for, but if Bitcoin goes up enough and you're rich in Bitcoins, it sucks not being able to use it.

Well, there are some other ways to bypass it as well. If I gain enough from Bitcoin that make me rich, I will visit a country where Bitcoin is legal cash it out there, and send it to my country in a legal way. I have a friend who lives in the Middle east and Bitcoin is legal there. They could sell their Bitcoin earnings and send money home via bank transfer or western union.

[|MINER|]

I don't think the authorities will launch tax for holding Bitcoin. But they can included tax on income. Moreover if any authorities of any country did launch tax for Bitcoin holding then use the Bitcoin power I mean decentralize p2p systems like no one can knows that you are investing on Bitcoin especially when you will hold that Bitcoin.

[LoyceV]

If I gain enough from Bitcoin that make me rich, I will visit a country where Bitcoin is legal cash it out there, and send it to my country in a legal way. I have a friend who lives in the Middle east and Bitcoin is legal there.

If I'd receive large amounts of money from the Middle East, I'll get a whole bunch of other questions and it's going to be a lot more difficult to explain the origin of the funds.

[joker_josue]

I have heard that India applied a 30% tax on Crypto gains or similar things. I don't know the details, but it's ridicules.

In Portugal it is similar, the tax on investment profits (Bitcoin is classified as an investment asset, similar to investing in the stock market), you pay 28% tax.

The person has to know how to manage their portfolio well, in order to do things with the least impact possible, in relation to this issue.

[Tigerheart3026]

1.  The government does not want to shut down bitcoin I don't know where you got that from. They approved 11 Bitcoin ETF's a couple days ago.

2.  Yes, you can buy on a KYC exchange and then transfer the funds to an address that the government cannot link you to. Use the bitcoin address of any non-custodial wallet of your choice. You will not get taxed until you move it from that Non-KYC wallet back to an exchange to sell.  That's the best way to go about it in your situation. Reporting anything stolen won't help you.  

can the government shut down bitcoin if want? it's not possible because bitcoin is not controlled by any government or organization.
if government imposed tax on bitcoin earnings that is fine but it sounds really ridiculous if it's taxed because of holding bitcoin.
dex is the best solution in this situation, you can buy coins and to sell your coins just use p2p feature, government can not trace your wallet.

[BTC_Dragon]

1.  The government does not want to shut down bitcoin I don't know where you got that from. They approved 11 Bitcoin ETF's a couple days ago.

2.  Yes, you can buy on a KYC exchange and then transfer the funds to an address that the government cannot link you to. Use the bitcoin address of any non-custodial wallet of your choice. You will not get taxed until you move it from that Non-KYC wallet back to an exchange to sell.  That's the best way to go about it in your situation. Reporting anything stolen won't help you.  

can the government shut down bitcoin if want? it's not possible because bitcoin is not controlled by any government or organization.
if government imposed tax on bitcoin earnings that is fine but it sounds really ridiculous if it's taxed because of holding bitcoin.
dex is the best solution in this situation, you can buy coins and to sell your coins just use p2p feature, government can not trace your wallet.

The government can't control BTC.

BTC was created to preclude centralization.

[WeThePe0ple]

If you keep on using P2P services in order to buy or sell the coins, then you will be saved from these additional taxes if the government of your nation imposes it.

And if Bitcoin goes to the moon, you won't be able to use it to buy anything big. That's the risk of not paying taxes, you'll end up with black money.

Well my country is known for luxury jewelry, which I can buy with BTC or other crypto. No bank involved. I don't know if this transaction has to be linked to my identity. If they accept Monero or other privacy tokens for example.

The government may ask how I got my hands on 100k worth of jewelry when I sell it for cash. I can say I found it on the street, or it was given to me by a rich person. I don't think they can force me to pay taxes on jewelry that I own. If I can't sell for cash, I can sell for other crypto.

And right now banks and governments are trying to delist privacy tokens like Monero. While this may work in the short term, I'm pretty sure other tokens will arise. It's interesting to see who will win the battle. But I think the little people have a chance

[WeThePe0ple]

1.  The government does not want to shut down bitcoin I don't know where you got that from. They approved 11 Bitcoin ETF's a couple days ago.

But what does this mean? Compare it to a gold ETF.
The government wants to control the market. They will do this by taking over the exchanges. One of the things they want at this point, is to force all crypto wallets to apply KYC. They hate the aspect of anonymous wallets. They want to know what you own so they can take it from you or tax the shit out of you.

While the ETF opens the gates to global adoption of BTC, it also means that institutes like Blackrock will do everything in their power to control the market. I expect them to forbid self custody of BTC. You can only buy BTC via their ETF. Meaning they will control all BTC supply. You will not own the BTC by yourself, privately. You will own a contract that says that you own 1 BTC, that they store for you. It is like this with gold. For every bar of gold, there are loads of people who own a contract that says this gold is theirs.

This is how Blackrock rigs all markets and manipulates prices. You are not allowed to own anything. They own it for you and they rig the entire market. If 200 people "own" the same bitcoin, that eliminates the scarcity which makes bitcoin expensive. They can crash the price this way.

Surely they will have to convince the little people that this is best for them. I expect some terrorist attack of which they will say that it was paid with bitcoin

[Viscore]

If the government will tax bitcoin hodlers, then where’s decentralization there? I believe as long as bitcoin remains decentralized, no third party will know that you are hodling bitcoin. So it’s useless to say that in order to shut down bitcoin, they will demand bitcoin being taxed, which I think will be highly impossible as no one will surely admit that he’s hodling bitcoin secretly.

Luckily, my country is a crypto friendly. All the crypto transactions are legal but they never see bitcoin or any cryptocurrency as a legal tender, but they don’t put restrictions as well that will discourage the people from making crypto transactions.

[BTC_Dragon]

1.  The government does not want to shut down bitcoin I don't know where you got that from. They approved 11 Bitcoin ETF's a couple days ago.

But what does this mean? Compare it to a gold ETF.
The government wants to control the market. They will do this by taking over the exchanges. One of the things they want at this point, is to force all crypto wallets to apply KYC. They hate the aspect of anonymous wallets. They want to know what you own so they can take it from you or tax the shit out of you.

While the ETF opens the gates to global adoption of BTC, it also means that institutes like Blackrock will do everything in their power to control the market. I expect them to forbid self custody of BTC. You can only buy BTC via their ETF. Meaning they will control all BTC supply. You will not own the BTC by yourself, privately. You will own a contract that says that you own 1 BTC, that they store for you. It is like this with gold. For every bar of gold, there are loads of people who own a contract that says this gold is theirs.

This is how Blackrock rigs all markets and manipulates prices. You are not allowed to own anything. They own it for you and they rig the entire market. If 200 people own the same bitcoin, that eliminates the scarcity which makes bitcoin expensive. They can crash the price this way.

Surely they will have to convince the little people that this is best for them. I expect some terrorist attack of which they will say that it was paid with bitcoin

People will laugh, but you're essentially spot on here. BTC exists to preclude the very centralization the elite/banks/Blackrock pines for. Stack and hodl.

[AVE5]

Such  situation would be unbearable to the individual investors but the reality truth is that Bitcoin is a decentralized digital currency which an existing government authorities has the power to decide if it would accepted or not in both trading and the P2P transactions despites the custodian formula of the Bitcoins technology and of course the individual would be left to dance by the tunes but if you are deep in to make a change out of the situation that you are deprived of Bitcoins legal existence in your place then you have no choice than making a choice to change of location.

[Victorik]

If this hypothesis Was possible, then probably the government would have implemented long ago. But obviously it isnt going to work for some obvious reasons.
The whole idea of decentralisation would be defeated if the government can tax BTC holders. I believe that's the essence of been decentralised in the first place.
So, I don't see that happening anytime soon

[Riginac111]

Can I transfer the BTC from my current address, to an address that no government can ever link to me?

The way we are seeing everything concerning Bitcoin I think that it is possible that you can transfer your bitcoin to another bitcoin address but that does not mean that is not public there's no bitcoin address that cannot be seen or the private one that is meant for government so any person by saying that there is private one that is meant for government I don't think that that person is totally right

So the essence of having a cryptocurrency especially Bitcoin is because of privacy but many people do not understand the fact, that privacy is why bitcoin is being created and that is why government was against the existence of Bitcoin but I don't think that there is wallet address that government can have access to it because they don't have any access to Bitcoin assuming that government have access to Bitcoin that would have being a challenge of Bitcoin existence.

There's something that many people do not understand the concerning government and the Bitcoin or government and the cryptocurrency the thing is that government is after Bitcoin because they want to take over it without knowing the how the creation take place but that does not mean that any crypto address that you want to transfer your crypto to that government is in charge of all of them or government will know about to them, I think that concept or emphasis is very wrong so let us just know that the government does not have anything to do with it our address especially Bitcoin

[WeThePe0ple]

If the government will tax bitcoin hodlers, then where’s decentralization there? I believe as long as bitcoin remains decentralized, no third party will know that you are hodling bitcoin. So it’s useless to say that in order to shut down bitcoin, they will demand bitcoin being taxed, which I think will be highly impossible as no one will surely admit that he’s hodling bitcoin secretly.

I got my first BTC on a centralized exchange. They even have a button saying "my taxes".
When BTC leaves the exchange to my BTC address, there will be a link to my ID. Governments will ask the exchange about my details and they will provide them.

I just need to clean my BTC from here. With other tokens like Monero, for example.
The concept is easy. If they know what you own, they will find a way to take it from you. So we must do everything in our power to prevent them from knowing.

[thecodebear]

It's just YouTube, but today I ran across a video that mentioned a bitcoin HODL tax.

In order to stop bitcoin, authorities would have to shut down the internet which is impossible. So I predict that their next move is to launch enormous taxes to discourage people from owning bitcoin, and prevent mass adoption as competition for their corrupted CBDC's that still have to be launched. The purpose of their regulations is to take over the entire bitcoin market, of course. They will make you sell, either by launching huge taxes for ownership or by treating the owner of 1 BTC like a drug dealer (prison sentence).

So we need a gameplan against this.

Can we be exposed to taxation or legal penalties when the wallet is reported as stolen? I think not, but I want to be sure.
I don't think you can pay taxes on something you do not officially own. And neither can you pay taxes when you don't have money or own other assets.

I have purchased my first BTC on a regulated exchange with KYC. I don't prefer it because of privacy reasons, but I had no other choice at the time. From there it will go to my coldstorage device, which I consider reporting as stolen if a ownership tax is launched. However, authorities would know the BTC address (exchange will provide it) and every future transaction that came from it. So I could never move the funds after reporting it as stolen (I guess) as this demonstrates they were not stolen.

Can I transfer the BTC from my current address, to an address that no government can ever link to me?

No you don't "need a gameplan against this" because this is just a crackpot theory from some random person you watched on youtube. It's not real. My advice to you is to stop watching crazy people on the internet and believing whatever they say.

[LoyceV]

The government may ask how I got my hands on 100k worth of jewelry when I sell it for cash. I can say I found it on the street, or it was given to me by a rich person.

Here, that would either mean having to report the found jewelry, or paying tax on the gift. There are no easy "loopholes", everything is regulated.

[franky1]

The government may ask how I got my hands on 100k worth of jewelry when I sell it for cash. I can say I found it on the street, or it was given to me by a rich person.

Here, that would either mean having to report the found jewelry, or paying tax on the gift. There are no easy "loopholes", everything is regulated.

one loophole:
mix your old coins(cap gain risk) for someones fresh mined coins.. then claim you mined them this year at a hardware/electric cost of $50k a coin (western electric is higher then eastern europe/asia/slavic countries)

thus no gains. plus you can prove acquisition by signing a key that received coin that has miner taint of this years reward
enjoy

[LoyceV]

claim you mined them this year at a hardware/electric cost of $50k a coin (western electric is higher then eastern europe/asia/slavic countries)

thus no gains.

Here, that would mean paying income tax

[PIMPdev]

I think you can easily buy BTC on a P2P exchange and keep it in a non-custodial wallet, how can anyone track if you're holding any BTC if you're discreet enough?

[franky1]

claim you mined them this year at a hardware/electric cost of $50k a coin (western electric is higher then eastern europe/asia/slavic countries)

thus no gains.

Here, that would mean paying income tax

self employed. offset costs (electric+hardware)