Are Bitcoins taxable?

[LuckyHopper18]

Well some countries right now are trying to impose a tax on using bitcoin. I heard US and UK have implemented a taxation rule in owning bitcoin. Some countries still ignores the presence of bitcoin.

[gandhe83]

Well some countries right now are trying to impose a tax on using bitcoin. I heard US and UK have implemented a taxation rule in owning bitcoin. Some countries still ignores the presence of bitcoin.

Bitcoin is anonymous and highly secure, so checking transactions is very difficult. So I think that in order to levy bitcoin, the authorities need to study ways to levy taxes on bitcoin transactions.

[LuckyHopper18]

Well the government can always find a way. They always do. US and UK already have a concrete plan on how to impose a taxation on person using bitcoin. Try to read this article. https://www.theguardian.com/technology/2017/dec/04/bitcoin-uk-eu-plan-cryptocurrency-price-traders-anonymity

[julzcoinbit]

As far as I know if you have a business where you use Bitcoin as a form of cash then it is taxable. What I know also is that if you are exchanging it via exchangers and withdrawing it through your bank accounts then it is not taxable.

You're right if that's the agreement between two parties but the point is when the government want some counterparts or enough shares just like having taxes on bitcoin I don't think if it's possible. As we already know bitcoin was designed which decentralized has been occurred that no 3rd party involved just like any government sectors or banking system, I would say that it's impossible to have taxes as of this moment. Maybe, if the government will study deeply the situation of bitcoin as well as the concepts on it, definitely  it's possible to have a taxes which for sure it will have many debates and sessions to discuss on how to implement that issues.

[ipanks]

Well some countries right now are trying to impose a tax on using bitcoin. I heard US and UK have implemented a taxation rule in owning bitcoin. Some countries still ignores the presence of bitcoin.

the government will try to apply the taxes for every people which owning bitcoin but it will be difficult since they need to verify every transaction that is happening on blockchain and it is not easy to them. I think maybe they will only see from the transferring fund into every people and maybe they will interrogate people about from where the fund is so they can track down and analyze if this person owns bitcoin or not. but I still cannot think how they will do this and I don't want to think anymore.

[romero121]

Bitcoin is getting more and more importance with the increasing adoption and increasing user community. With this in regard bitcoin has been under study by the governments around the world. Possibly this will cause a taxation on the use of bitcoin, because governments too try to benefit through the same.

[Kulafu]

Bitcoin can be taxed.
In my country if you sold your bitcoin the government will tax 12% on the value.
At the moment you will withdraw your money 12% is already deducted.

[SPOILER]

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 agreed. Bitcoins should be taxable.

[bakekang008]

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?

In other country maybe they put tax in bitcoin. But for now in USA the president they dont tax bitcoin because for now bitcoin is promising currency.

[Jrein23]

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?

In other country maybe they put tax in bitcoin. But for now in USA the president they dont tax bitcoin because for now bitcoin is promising currency.

USA is already imposing tax for persons who uses bitcoin. USA are creating a law how to put tax in bitcoin. Sad for those who live in the United States. LOL

[Prk_7]

If you have Bitcoin in the form of cryptocurrency than you won't be fines but if you want to cash out Bitcoin in US you'll be taxed. Unless it's a commodity you won't be Taxed

[tudglien]

It's hard to levy a tax for the time being, because it's all a centralization of anonymous transactions. But I think the government can levy taxes indirectly, they can make those digital money exchanges pay taxes, and the exchange can increase transaction costs.

[tanghere1]

I don't think so. Not being taxable is the one of the thing I like about bitcoin. The government can't get to us, the bank can't to us. Everything here is done by user to user.

[kryptorian]

I don't think so. Not being taxable is the one of the thing I like about bitcoin. The government can't get to us, the bank can't to us. Everything here is done by user to user.

Bitcoin may not be taxable directly, but the profits earned with it definitely are. In most countries you will have to pay an income tax on such earnings. Whether they will be able to catch you for tax evasion if you don't pay this tax is another matter, but in the US you'd better not look that way. The IRS is no fun to play with.

[wjchong]

Yes, like many countries including USA , the taxation law has no mention of BITCOIN. But remeber , the taxation laws always keep the meanining of income so wide that tha taxmen will always bring some interpretation to include it.

Yes I totally agree with you.
Bitcoin is taxable but not in simple words tax.

[icanscript]

I don't think so. Not being taxable is the one of the thing I like about bitcoin. The government can't get to us, the bank can't to us. Everything here is done by user to user.

Bitcoin may not be taxable directly, but the profits earned with it definitely are. In most countries you will have to pay an income tax on such earnings. Whether they will be able to catch you for tax evasion if you don't pay this tax is another matter, but in the US you'd better not look that way. The IRS is no fun to play with.

But how to determine if there is a profit, or vice versa, what is the loss? Does a tax credit arise? In what size?

[cryptokudi]

If bitcoin is legalized in a certain country it isn't still be taxed but only for those services who do accept bitcoin as a 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 were able to use a certain service which would able to calculate how much you do earn and that service does follow governments compliance for sure you would be taxed up.

[SummonKing2]

Taxes can be taxed bitcoin for reasons. Bitcoin is a virtual currency that uses cryptographic encryption system to facilitate secure transfers and storage. Unlike a fiat currency, bitcoin is not printed by a central back, nor is it backed by any. Bitcoins are generated by what is called mining-process wherein high-powered computers.

[Washball]

Any regular country with taxes, will try to get at least a part of it's income through taxes. The nation should pay taxes, whether it's income or wealth. With bitcoin it may look difficult but in some countries the exchange can send the information of people having cashed their Bitcoins for a certain amount.

[Sheltor]

Exchanges or purchases of virtual currencies represent the business risk of investors and investors' money are not protected. ... There is no capital gains tax chargeable on bitcoin, however bitcoin mining is taxed and businesses selling goods/services in bitcoin are also taxed.