Bitcoins and Tax

[Onestopbrokers Directory]

Reading today a post on onestopbrokers.com from the source theaustralian about paying capital gains tax on selling Bitcoins it seems to me that more and more countries are looking to control the idea of cryptocurrencies. Yes, on one part this is good not only for the "security" of these assets but also for the community in general but on the other hand it seems that the meaning of buying and selling crypto currencies in general but also paying with these assets for purchasing stuff is loosing the meaning of the idea of creating and possessing such assets. It seems that crypto currencies will be "another" currency like the others.
I don't know, maybe I'm wrong because I'm new to Bitcoin and crypto currencies but this is how I feel.

[luckyluigi]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

[bluefirecorp]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

[luckyluigi]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

Ok, but consider a situation like this:

Steve completes a task or sells a service. Steve gets paid in bitcoin. Steve never reveals his real idenitity to his customer/employer. Wouldn't Steve have to be a moron to report his bitcoin earnings in this case? Or am I missing something?

[botany]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

Ok, but consider a situation like this:

Steve completes a task or sells a service. Steve gets paid in bitcoin. Steve never reveals his real idenitity to his customer/employer. Wouldn't Steve have to be a moron to report his bitcoin earnings in this case? Or am I missing something?

The problem comes when Steve sells his bitcoins. If he is unable to spend it on something anonymously, it might be a problem to him.

[itsAj]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

Ok, but consider a situation like this:

Steve completes a task or sells a service. Steve gets paid in bitcoin. Steve never reveals his real idenitity to his customer/employer. Wouldn't Steve have to be a moron to report his bitcoin earnings in this case? Or am I missing something?

If, in your example, Steve were to spend his coins on some amount of goods and/or converts his BTC into fiat then he would likely be able to live a much higher standard of living then what he is reporting as his income. This alone is something that the IRS can use as evidence of tax evasion. This is assuming that Steve does this over many times and earns a lot from doing this verses the amount he earns from his reported income. If Steve only makes a little bit then it would be hard to detect but would still be unethical.

[Onestopbrokers Directory]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

Ok, but consider a situation like this:

Steve completes a task or sells a service. Steve gets paid in bitcoin. Steve never reveals his real idenitity to his customer/employer. Wouldn't Steve have to be a moron to report his bitcoin earnings in this case? Or am I missing something?

If, in your example, Steve were to spend his coins on some amount of goods and/or converts his BTC into fiat then he would likely be able to live a much higher standard of living then what he is reporting as his income. This alone is something that the IRS can use as evidence of tax evasion. This is assuming that Steve does this over many times and earns a lot from doing this verses the amount he earns from his reported income. If Steve only makes a little bit then it would be hard to detect but would still be unethical.

Does anyone knows where I can find a list with countries which have already impose taxes on gains from Bitcoin? I've tried searching the internet but I couldn't find anything.

[Ayers]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

not the one done face to face, what if i sold something and i pay it in bitcoin face to face? impossible to track

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

Ok, but consider a situation like this:

Steve completes a task or sells a service. Steve gets paid in bitcoin. Steve never reveals his real idenitity to his customer/employer. Wouldn't Steve have to be a moron to report his bitcoin earnings in this case? Or am I missing something?

If, in your example, Steve were to spend his coins on some amount of goods and/or converts his BTC into fiat then he would likely be able to live a much higher standard of living then what he is reporting as his income. This alone is something that the IRS can use as evidence of tax evasion. This is assuming that Steve does this over many times and earns a lot from doing this verses the amount he earns from his reported income. If Steve only makes a little bit then it would be hard to detect but would still be unethical.

explain "much higher standard of living", the problem is all there, if he just use the not reported income for something small like pc component and electro domestic stuff, they won't trace him, foods is also a good things to buy, if you want escape taxes

[itsAj]

It's inevitable that countries would try to tax bitcoin, it's either that or ban it. But if someone only deals in bitcoin, how are the governments going to enforce that? That's the big question to me.

How do governments enforce income tax? How does government enforce taxes on any private transactions?

In the USA:
The I.R.S. No one wants to fuck with the I.R.S. Bitcoin is a general ledger, they literally can see every single transaction that ever takes place..

Ok, but consider a situation like this:

Steve completes a task or sells a service. Steve gets paid in bitcoin. Steve never reveals his real idenitity to his customer/employer. Wouldn't Steve have to be a moron to report his bitcoin earnings in this case? Or am I missing something?

If, in your example, Steve were to spend his coins on some amount of goods and/or converts his BTC into fiat then he would likely be able to live a much higher standard of living then what he is reporting as his income. This alone is something that the IRS can use as evidence of tax evasion. This is assuming that Steve does this over many times and earns a lot from doing this verses the amount he earns from his reported income. If Steve only makes a little bit then it would be hard to detect but would still be unethical.

explain "much higher standard of living", the problem is all there, if he just use the not reported income for something small like pc component and electro domestic stuff, they won't trace him, foods is also a good things to buy, if you want escape taxes

If you buy things like a nicer car and a bigger house then what your (reported) income would suggest that you can afford then the IRS could charge you for tax evasion. The IRS would likely not be able to charge you if you only buy a few small things with your unreported income, but small things add up over time and over time it is easier for others to see that you are really making more money then you say you are making.

[Onestopbrokers Directory]

But I assume that Bitcoin will be taxed accordingly based on each country's tax percentage.

[cryptoanarchist]

There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

[Onestopbrokers Directory]

There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

  I got the point, correct you are right 

[dankkk]

There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

You are correct that no law mentions specifically when forcing people to pay taxes. However there are laws that make you pay taxes when you sell your assets for more then you purchased them for. There are also laws that say when you engage in a transaction that does not involve money (a barter transaction) then you must "pretend" that fiat was exchanged prior to the transaction to get both the cost basis of the item being purchased and the sale price of the item being sold.

[dadj]

Reading today a post on onestopbrokers.com from the source theaustralian about paying capital gains tax on selling Bitcoins it seems to me that more and more countries are looking to control the idea of cryptocurrencies. Yes, on one part this is good not only for the "security" of these assets but also for the community in general but on the other hand it seems that the meaning of buying and selling crypto currencies in general but also paying with these assets for purchasing stuff is loosing the meaning of the idea of creating and possessing such assets. It seems that crypto currencies will be "another" currency like the others.
I don't know, maybe I'm wrong because I'm new to Bitcoin and crypto currencies but this is how I feel.

You don't need to worry about paying capital gains tax - that's the friendlies tax of them all. We have a situation on our hands in Australia with the Goods and Services Tax. You can find out more about it here and take action:

https://www.change.org/p/treasury-of-the-australian-government-make-australia-a-bitcoin-friendly-country

Please sign and share!

[Bitcoinpro]

There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

Haha its not wow gold when they have changed it back to Fiat, it really would depend if they sold

it back on an exchange that has their details and most probably be reporting to the tax office

and with your details attached, that being said their would have to be a reasonable amount

of money in it for the tax office for them to bother chasing you.

Their is plenty of people running non bitcoin enterprises that have staggering tax bills who

probably thought at the time they weren't going to get caught either.

If you made money from mining the coins it would be very easily to write of all your

taxes as business expenses which they most probably where anyway, unless you

managed to mine bitcoin out in the rain at some stage or from your car.

[Ayers]

there are some countries where bitcoin is tax free, they declared it, i don't remember now the name of those

[bitcollins85]

They should make this even more complicated and onerous,How is the tax paid,
 in Bitcoin? Is it calculated in USD?

[IBGigglin]

There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

+1

[bytezero]

If Bitcoin is property it therefore would be subject to all sorts
of sales taxes as it changes hands.
This is an attempt by the IRS to tax Bitcoin to death.

[Jamie_Boulder]

The unfortunate truth is that it's an object of wealth, therefore is subject to tax just like anything else - you may be able to avoid it if you just don't trade it for FIAT however if you make a large enough purchase like a house you'll be getting some questions....and probably a hefty tax bill from the IRS lol