Are Bitcoins taxable?

[jamesclark]

I think if you convert enough BTC into cash, then you may be subject to taxes.

[1715454417]

1715454417

[1715454417]

1715454417

[sorin90]

In my country the BTC per say is not taxable but the income is so from sums bigger then 10.000 euros I think you will need to pay a tax as you need to do it for all other incomes. From my knowledge In the US there is a similar law so I think that you will need to pay some taxes from the income.

[Marco Ambrusini]

Directly or indirectly bitcoins is taxable in its own context but you might not see it as taxable.The miners fees and transaction fees by exchanges can indirectly categorised as taxable fees

[Jaya912]

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?

Yes it is taxable if the government has been legalize bitcoin in their country.
But so far i dont think so. Taxable is not really bad i think. I will support it as far as i have more income from it.

[ipanks]

Bitcoin is decentralized and only answerable to the market forces and being this way government has no hand in Bitcoin control and not taxable. You as a citizen may be asked to pay tax by the government if they know that you have a job doing. But as a trader in cryptocurrency and even forex nobody is asking you for tax.

yeah the key is on decentralization. bitcoin will not be controlled by anyone including the government. so the government will not know who are the people of their country who use bitcoin, so the government will not be able to give you taxes? after all, bitcoin is anonymous. so bitcoin will not support to be given tax to its users. that is the logic

even if the government want to check every citizen bank account, they cannot found people who use bitcoin and we are still hiding behind the wall. or if the government make a pooling to try to search people who use bitcoin, I don't think that people want to tell the government that they keep the bitcoin for their own purpose. but I still think that the government will use every way they can to know this and they still want to make taxes in the future.

[Good Bo]

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 the US, Bitcoin is treated as a commodity and is thus not taxed unless you want to cash out to FIAT.
It is only then that you're forced to declare your income and be taxed on it. Bitcoins themselves are not (and cannot be) taxed.

You said that bitcoin is not taxable but the income in fiat is taxable. If it the question then i agree.
I was thinking that the income from bitcoin is taxable from the op question.

[Wyne]

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?

As what we (bitcoiner) experienced, we receive our bitcoin earnings without tax and that is the reason why other countries ban bitcoin because their government get nothing from bitcoin.  And I think, it is hard for our government to detect and monitor who has ton of bitcoins to charge for tax.  Beside, you cannot consider bitcoin as an income if it is not  yet converted into flat.  So, I think bitcoin is not a taxable asset.

[Ana Le]

I think when you sell bitcoin out of money, you will be taxed! But, if you deal directly with the seller and the buyer? This is a difficult issue! 

[BlackRacerX]

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 itself aren't taxable but the monetary value of each bitcoin is taxable whenever you cash-out your bitcoins for dollars. That's probably how the government would issue taxes on bitcoin profits. If somehow the government does tax the bitcoins itself, then bitcoins are no longer decentralized.

[Edsemen]

If government really wants to tax you they will come up with some excuse

Well as of now bitcoin is no tax, maybe theirs a time for that they will make it taxable but for me tax is useless, we people always searching for the better one then the government always make people down by the tax, thats the big problem for the philippines right now and as the president searching for taxless the economy would be good.

[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.

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

Well, the process is pretty easy and straightforward really, and it is the same as with stocks, for example. Let's assume that you buy 1 share of some company at $1,000 and then the price rises, so you sell it for $1,500. Your profit is thus $500, and this is the amount which you should calculate your income tax on after applying tax deductions if there is any.

[Ibu Efi333]

everything including taxes must have been calculated carefully, the government will not necessarily impose taxes for no apparent reason,
then we wait for the reason the government taxes on this bitcoins

[Jeremiesaranza]

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?

No I think bitcoin is not taxable as long as you didn't convert it into cash or you sell your bitcoin

[BTCwin1]

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 United States has decided to a tax on encryption currency, but the tax is obviously too expensive, I don't think it is reasonable, it completely changed the pattern of now, but it also indirectly admitted that the encryption.

[crypto_the_river]

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 United States has decided to a tax on encryption currency, but the tax is obviously too expensive, I don't think it is reasonable, it completely changed the pattern of now, but it also indirectly admitted that the encryption.

Could you explain me exactly, how RSI will levy taxes on cryptocurrency? They say about differentiated system for holding a coin less or more...

[LordDisick]

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.

It can be taxed only if you convert bitcoin to fiat. Bitcoin transaction is not taxable unless its mandated by the country's government and if its already allowed to use bitcoin as payments though in my country its not yet regulated.

[teejaymuna]

No they are no taxable. They are only taxable when sold for fiat money

[boruto99]

do you know why we pay tax? how tax work?

we pay tax for interest on state debt.
never pay tax on your investmant or your bitcoin. but you must study how to avoid tax with legal...

[flower1024]

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.

It can be taxed only if you convert bitcoin to fiat. Bitcoin transaction is not taxable unless its mandated by the country's government and if its already allowed to use bitcoin as payments though in my country its not yet regulated.

I think in every country the governament will fix one amount for tax free. If your income does not cross this limit, you no need to pay any tax to governament or else you must pay. To avoid paying tax to the government, you can open accounts for your all family members, and whose income less you can use those accounts and convert your BTC to fiat you can save your tax amount.

[The Alchemlst]

If government really wants to tax you they will come up with some excuse

This is so true, not to mention other tax from almost everything our money goes into, even though it is not taxable whenever you earn bitcoins the tax from basic commodities and services from day to day is enough for me to feel drained.