Capital Gains Tax

[awigaxeh-443]

Canada
Earnings X 50% X ordinary income tax bracket
$100 X 50% X 43% = $21

USA
Short term gains: ordinary income tax rate
Long term gains/Eligible Dividends: 15%
BITCOIN DOES NOT COUNT AS PER THE 15% therefore you are taxed the normal rate.

[Gabi]

I suppose bitcoin is taxed only if you sell it for dollars. Otherwise it's just a virtual thing.

Or now they will tax also my EVE Online ISK? After all i could sell them for bitcoins...

[awigaxeh-443]

Look one way or the other, you're going to have to convert it to dollars, right? I mean you can't keep it virtual forever.

Unrealized tax gains cannot be taxed.

[memvola]

Look one way or the other, you're going to have to convert it to dollars, right? I mean you can't keep it virtual forever.

I for one don't have any plans to convert my "personal" bitcoins back to fiat money in the near or distant future, with the exception of acting as a middleman. However, when I spend coins, it us usually converted to fiat by the other party, and therefore taxed, so you are effectively right.

Or now they will tax also my EVE Online ISK?

I guess the question is, what if you accumulate all your profits as something that cannot be taxed, but can be exchanged?

[Gabi]

I can exchange EVE Online isk for bitcoin, but this doesn't mean i have to report my isk as income. Same for wow gold and whatelse.

[awigaxeh-443]

I can exchange EVE Online isk for bitcoin, but this doesn't mean i have to report my isk as income. Same for wow gold and whatelse.

Tell me where I can do this?

[Gabi]

Selling them for bitcoin for example?

[awigaxeh-443]

Exchanging... I play Eve Online as well.