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Author Topic: Are Bitcoins taxable?  (Read 2897 times)
badisnotgood
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October 10, 2017, 02:08:12 PM
 #81

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 am taxing my income from bitcoin. I change the bitcoin to the currency of my country, and from it I pay the necessary taxes. So far I have had no problems with the tax authorities.
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pixie85
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October 13, 2017, 09:31:56 PM
 #82

It will be difficult to tax bitcoins with his technology... I will never pay a tax for bitcoin I think.
That is simply not true. Since 2015 the IRS has been tracking ALL transactions. The tools for doing this get better every day and soon the U.S. will be in a position to start demanding the tax you owe. That includes back taxes and fines as well as any penalties, such as jail time. So many people are going to be hurt by this because they believe in whatever fairy tale they like from the internet. Make no mistake, you are being watched. You do owe capitol gains on your profits.

They will start with the biggest offenders then work their way down. Because of the blockchain it will be easy to scale up once they are competent with the software. Pay your tax or risk turning the investment of a lifetime into a prison sentence.  

READ:
https://www.chainalysis.com/

Does it mean Everything you have in bitcoin will be taxed? as what? INCOME TAX? it really sounds wrong for me. Sorry for my opinion. But i think they must have enough proof if the bitcoin was a "SALARY" and how about those people who just purchased bitcoin, will they be taxed also? If yes then this is a big problem and i don't think a lot of people will love this law/policy.
To the government it's all really simple.
If you have Bitcoins and convert them you subtract the amounts and what you are left with are your gains. These gains have a tax on them (usually something between 10 and 20%).
If there is a law in the USA that makes you pay gains even when you aren't converting it's a ripoff. People must be crazy if they are paying taxes based on the current value of their coins, even though they aren't converting them.

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October 13, 2017, 09:48:43 PM
 #83

It will be difficult to tax bitcoins with his technology... I will never pay a tax for bitcoin I think.
That is simply not true. Since 2015 the IRS has been tracking ALL transactions. The tools for doing this get better every day and soon the U.S. will be in a position to start demanding the tax you owe. That includes back taxes and fines as well as any penalties, such as jail time. So many people are going to be hurt by this because they believe in whatever fairy tale they like from the internet. Make no mistake, you are being watched. You do owe capitol gains on your profits.

They will start with the biggest offenders then work their way down. Because of the blockchain it will be easy to scale up once they are competent with the software. Pay your tax or risk turning the investment of a lifetime into a prison sentence.  

READ:
https://www.chainalysis.com/

Does it mean Everything you have in bitcoin will be taxed? as what? INCOME TAX? it really sounds wrong for me. Sorry for my opinion. But i think they must have enough proof if the bitcoin was a "SALARY" and how about those people who just purchased bitcoin, will they be taxed also? If yes then this is a big problem and i don't think a lot of people will love this law/policy.
To the government it's all really simple.
If you have Bitcoins and convert them you subtract the amounts and what you are left with are your gains. These gains have a tax on them (usually something between 10 and 20%).
If there is a law in the USA that makes you pay gains even when you aren't converting it's a ripoff. People must be crazy if they are paying taxes based on the current value of their coins, even though they aren't converting them.

I think you are supposed to pay taxes on the value of cryptocurrency. I know was unstable as cryptocurrency is, I can't imagine paying on December 31st a tax on 100000 dollar alt coin and on January 1st, that altcoin goes down to 10 dollars.

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October 14, 2017, 03:10:25 PM
 #84

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 am taxing my income from bitcoin. I change the bitcoin to the currency of my country, and from it I pay the necessary taxes. So far I have had no problems with the tax authorities.
Is it really possible I mean, I though Bitcoin is decentralized. So all along the solution to make Bitcoin centralized is to accept or legalize Bitcoin to that specific country. Considering the taxes, maybe you are right, because unlike Fiats, the wages that we get from it is that, 1/4 of that total amount of your pay will be tax. But if you are earning Bitcoin it is still probably have a lot more profit than paying those taxes.

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October 14, 2017, 03:14:52 PM
 #85

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 it is not. Bitcoin is decentralized which means it is not under any government. So the income that its users and investors won,'t be taxed if I'm not mistaken. But if it is legal to a certain country and if it will be used as a currency there's a huge probability that there'll  be tax just like in the trgular currency or fiat.

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October 14, 2017, 03:21:30 PM
 #86

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 it is not. Bitcoin is decentralized which means it is not under any government. So the income that its users and investors won,'t be taxed if I'm not mistaken. But if it is legal to a certain country and if it will be used as a currency there's a huge probability that there'll  be tax just like in the trgular currency or fiat.
If bitcoin is legalized on a certain country it isnt still be taxed but only to those services who do accept bitcoin as mode of payment. Bitcoin is a decentralized stuff and you cant impose taxes on it and if a certain person would decide not to pay up or declared on his earnings then you cant do anything about it. If you did able to use a certain service which would able to calculate on how much you do earn and that service do follow governments compliance for sure you would be taxed up.

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Rovie08
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October 14, 2017, 03:24:55 PM
 #87

No because we need more study about it. People are really into it maybe in the future should be taxable to also help in the government.
HarleyQuinn9876
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October 14, 2017, 03:54:13 PM
 #88

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 the bitcoin is not taxed. Bitcoin is not recognized by the government. So your income from bitcoin is not taxed. Bitcoin is only taxable when it is recognized as an official currency. If your country is taxing, you can still break the law

chichan13
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October 14, 2017, 04:29:54 PM
 #89

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?

Apparently, the most counties does not regulate the use of bitcoins so it is not taxed. The government may see this in the future worth dealing with when bitcoins stabilize. But for now, bitcoins still have risks that the government won't take. This is beneficial to us bitcoin users because we can have more profit and less paper works.

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October 14, 2017, 04:40:24 PM
 #90

It should be borne in mind that the tax can be taxed not by the crypto currency itself, not by its volume, but by the profit tax on operations with crypto currency. That is, as long as the crypto currency is stored in the wallet, it can not be taxed with tax. However, as soon as you exchange it for fiaf, this operation is already taxed and your profit from it is subject to taxation.

darkangel11
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October 14, 2017, 09:34:33 PM
 #91

I think you are supposed to pay taxes on the value of cryptocurrency. I know was unstable as cryptocurrency is, I can't imagine paying on December 31st a tax on 100000 dollar alt coin and on January 1st, that altcoin goes down to 10 dollars.

It's actually not as bad as you might think. First of all it's impossible for BTC to go that low in a day, or even a month. In case of a huge crash it would take at least a month for BTC to lose 50% of its value, provided that people were really into selling and there were no rebounds along the way.
Now, if you paid taxes from gaining something like 90k USD per coin in a year and next year it immediately lost something like 20% of its value before you managed to take your money out, you would report a loss and not pay anything. Next year, if the price went up you'd still be recovering from your loss and wouldn't have to pay anything until your profit became high enough again.
Also, keep in mind that in some countries the law is very lenient. For instance in GB you don't owe taxes from share dividends below £5k a year and personal allowance of £11k. So in other words either you're earning less than 11k and don't owe any taxes or you earn above that, but less than 5k from BTC and you still don't pay Cheesy

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October 14, 2017, 09:48:48 PM
 #92

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 it is not. Bitcoin is decentralized which means it is not under any government. So the income that its users and investors won,'t be taxed if I'm not mistaken. But if it is legal to a certain country and if it will be used as a currency there's a huge probability that there'll  be tax just like in the trgular currency or fiat.
I think yes only such countries can collect tax from bitcoin users, where bitcoin is a legal currency, like japan who have turn bitcoin as legal currency and therefore there are more chances that they will be collecting tax on bitcoin. i think it is in favour of the government to consider bitcoin as legal currency, because they can collect a big amount of money in short period of time.


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Johj
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October 14, 2017, 10:17:34 PM
 #93

Bitcoin taxes are like capital gain taxes, at least in my country. I need to pay 24% taxes from the moment I cash out any Cryptocurrency gains. Depends on your country though, just ask your local tax authority as I did.

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October 14, 2017, 10:37:37 PM
 #94

Bitcoin taxes are like capital gain taxes, at least in my country. I need to pay 24% taxes from the moment I cash out any Cryptocurrency gains. Depends on your country though, just ask your local tax authority as I did.
Government authorities on our country isn't imposing tax to any bitcoin holders. Vey often that we pay any charges when we make transactions but not considered as tax, it is a service fees only. Because as far as I know, if you declared all your owned assets including btc to the government, then it could be included during their calculation on how much  tax you gonna pay for the overall amount. If not the, it will be free from any charges.

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October 14, 2017, 10:52:30 PM
 #95

Bitcoin taxes are like capital gain taxes, at least in my country. I need to pay 24% taxes from the moment I cash out any Cryptocurrency gains. Depends on your country though, just ask your local tax authority as I did.
Government authorities on our country isn't imposing tax to any bitcoin holders. Vey often that we pay any charges when we make transactions but not considered as tax, it is a service fees only. Because as far as I know, if you declared all your owned assets including btc to the government, then it could be included during their calculation on how much  tax you gonna pay for the overall amount. If not the, it will be free from any charges.
Yes I agree with you. The government has not yet made a tax code for Bitcoin they just put it into income tax. Wink

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October 14, 2017, 10:57:21 PM
 #96

Bitcoin taxes are like capital gain taxes, at least in my country. I need to pay 24% taxes from the moment I cash out any Cryptocurrency gains. Depends on your country though, just ask your local tax authority as I did.
Government authorities on our country isn't imposing tax to any bitcoin holders. Vey often that we pay any charges when we make transactions but not considered as tax, it is a service fees only. Because as far as I know, if you declared all your owned assets including btc to the government, then it could be included during their calculation on how much  tax you gonna pay for the overall amount. If not the, it will be free from any charges.
Yes I agree with you. The government has not yet made a tax code for Bitcoin they just put it into income tax. Wink
That's the only way they can do, your earning from bitcoin will be considered as an income and therefore eligible to be taxed, but, government can't tax bitcoin, they have no control over it.
and also, there's tax for local exchange company.

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October 14, 2017, 11:08:16 PM
 #97

I once went to our barangay to get a barangay clearance. It was needed for my wallet particularly coins.ph for me to get the level 3. If you get level 3 you got to get unlimited withdraws. And I think that is great. And the person who is issuing the barangay clearances told me that having online jobs doesn't have any taxes and EVERYBODY can do that. So bitcoin is not really taxable.

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October 14, 2017, 11:21:59 PM
 #98

Bitcoin taxes are like capital gain taxes, at least in my country. I need to pay 24% taxes from the moment I cash out any Cryptocurrency gains. Depends on your country though, just ask your local tax authority as I did.
Government authorities on our country isn't imposing tax to any bitcoin holders. Vey often that we pay any charges when we make transactions but not considered as tax, it is a service fees only. Because as far as I know, if you declared all your owned assets including btc to the government, then it could be included during their calculation on how much  tax you gonna pay for the overall amount. If not the, it will be free from any charges.

yeah. same here, governments authorities on my county are not imposing any taxes to any bitcoin holder, our country bitcoin wallet provider has implement a fee but not considering as a tax. i think when the country wants to collect taxes from bitcoin holder to fully legalized bitcoin on their own country, and by managing of their own government authorities.

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October 14, 2017, 11:28:29 PM
 #99

I am not familiar with US tax laws. But insofar as the tax laws in my country are concerned bitcoin income should be taxed. It shall be lawfully included in your assets since bitcoin is basically part of you wealth. Any income arising from it shall be subjected to taxation. But since bitcoin is generally strange here even if the government allows its existence and circulation, people can still easily get away from bitcoin taxes.

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October 14, 2017, 11:31:23 PM
 #100

Yes of course,  the government can  take the bitcoin tax through the merchants. Bitcoin users will pay tax that included in the price of goods.
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