Are Bitcoins taxable?

[Cryptoipad]

Yes this all bitcoin users the business are savings to the taxable market.Paying taxes on bitcoin may seem daunting to people selling off their investments.The reality is straightforward for most investors, based on how much you bought bitcoin for, how much you sold it for, and what you make in income.But as tax season approaches, it may not be immediately clear how the imposes taxes on bitcoin Are the gains considered income are they capital gains something else entirely in system.we will helps from the financial experts, Business Insider into the tax code to make the process of paying taxes on bitcoin as simple as possible of business.

[hanabii]

Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?

The IRS has obliged to report bitcoin transactions of all kinds, no matter how small they are. Accordingly, each US taxpayer is required to keep records of all purchases, sales, investments, or use of bitcoin to pay for goods or services

[BitTrident]

     There is a lot of misinformation in this thread regarding the legality of avoiding taxes. Given that there are 21 pages on this thread regarding the subject, I am sure what I am about to say has been said before. The last thing that I want is to see any bitcoin supporter go to jail for tax evasion, so I will reiterate what I know to be true.

(I am basing my response off of the United States Tax Laws, however, this will likely apply to most other countries as well.)

     YES, you do have to pay taxes on cryptocurrency! Cryptocurrency has some uncertainty whether or not its to be treated as a currency or a commodity... but one thing is certain, it is certainly considered a capital asset.

     As we all know, the price of cryptocurrency certainly can fluctuate. Now one huge misconception is that if you hold on to a cryptocurrency that goes up in value, your going to have to pay huge amounts of taxes if you end up filing taxes while the price is high. The obvious fear there would be that if you pay taxes at a high evaluation, then the price lowers before you sell it, you would be paying taxes on unrealized gains.

     The only taxes that an individual is expected to pay is on realized gains. In order to file taxes, you must keep track of the following:

1) The date, amount, and cost/price of every time you have bought the cryptocurrency
2) The date, amount and price of every time you end up selling the cryptocurrency.

   Using this information, it is possible to determine the actual realized gains. If the sale of the cryptocurrency comes less than a year after the purchasing date, then it is taxed as income (a much higher rate). If you have held on to the cryptocurrency for longer then a year, the gains are taxed at a much lower rate.  

[sunny7408]

simply having tons isn't income,
if it's about income, BTC aren't any different from cash, you can avoid to pay taxes, but you're not allowed to. 

Bitcoin is taxable, it differ country to country. 30% tax on Bitcoin in India if you hold it less than 2 years.

[babarian]

if it has been received in a country most likely bitcoin should be taxed. but because my country has not been accepted yet, so far bitcoin has not been taxed

[VeronAncient]

if bitcoin is taxed when we work and get a bitcoin wage and we have a steady income every month. but if we just keep it, I think we can avoid taxes because we have no fixed income of bitcoin and we use bitcoin as an investment tool not to earn income.

[anam17]

I believe btc is taxable. Not by means of the government is taxing but I guess that the miners were the one who are asking for taxes. The confirmation is dependable on how much btc you spend. If you will spend the high amount in sending then the confirmation of your transaction will be fast.

[elkafee79]

Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?

bitcoin will give you alot income, I think It is taxable. so, you must pay tax. in my opinion.

[xfaqs01]

i think bitcoin itself cannot be tax, i cant think of a way how to tax it, the only way that the government tax the crypto is through centralized exchange and merchants that accepts bitcoin or altcoins.

[AndreyBitTalk]

bitcoin is not taxable..he's not controlled yet,the maximum that can be done is to pay income tax for the year to go to the tax, and specify your profit,and to pay 13%

[BitTrident]

i think bitcoin itself cannot be tax, i cant think of a way how to tax it, the only way that the government tax the crypto is through centralized exchange and merchants that accepts bitcoin or altcoins.

     I think you are confusing the government's ability to tax bitcoin with the requirement to pay taxes on bitcoin. The government certainly is at a massive disadvantage when it comes to determining the accuracy of an individuals tax filings when it comes to bitcoin. Just because the government is not able to easily hold us accountable, does not mean that taxes simply do not have to be paid.

     Bitcoin is still a capital asset. If income is made in the form of bitcoin, it still needs to be taxed as income. If an individual makes a realized gain from the sale of their bitcoin, then that profit is subject to taxation as well.

     If an individual avoids paying taxes on their Bitcoin, they are going to run into troubles whenever they try and spend it. Most legitimate exchanges will report large transactions to the IRS. If you accept large payments in exchange for your Bitcoin, the IRS will be able to track that. If you do not pay taxes you will not be able to make any large purchases without the IRS being able to determine you are committing tax fraud.

[wanimulyo]

Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?

I think, bitcoin is taxable. If government really wants to tax you , you must pay it.

[okour999]

I think there is no tax on bitcoin except overseas that approves the bitcoin in their country as well as the government so other countries have tax because they know legit bitcoin and they can also cashout big money because legit bitcoin their country

[udanemas]

Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?

 I think , bitcoin is taxable. Every transaction give income is taxable. So If government really wants to tax you must pay. it's in my opinion.

[etin06]

Yes bitcoin are taxable just that government is still trying to understand the Blockchain technology and come out with measures to collect tax from crypto currency in general.

[poldanmig]

Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?

for now there is no tax that can bind the bitcoin that happens in my country, maybe because the government has not fully formalize bitcoin into the official currency that can to conduct transactions, maybe if the government legalize bitcoin there will be a tax that regulate it

[musta5a]

There will be huge revolution on taxing Cryptos. BTC

yes absolutely, now we're at the stage where the regulation is being set which means also taxes will need to be paid from crypto trading profits. I believe it's a good thing though

[Ambrosius]

As good citizens, we should be taxable. So my question to date is whether the bitcoin user may be taxed while the bitcoin user identity can not be traced.

[zagu]

I know today countries have adjusted the taxes for bitcoin. but I have not yet clarified which countries it is

[TheGodFather]

Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?

I think that is also one of the major reason and factor why countries are getting a double take when acceting bitcoin on their border because they still do not know how to regulate or tax cryptocurrency. I agree with some of the post here that says that you cannot tax something that is still in the market or in the network but once you change it into cash then I would think that there is where the regulation would take place and the taxation would be applied to money changed from cryptocurrency