Are Bitcoins taxable?

[Ivy41]

In my country, you can only pay taxes on assets gotten through btc investments and profits.

[koeb88]

It depends on the country where you live. Different governments have different solutions and taxes for handling bitcoin. But over all bitcoin should be seen as an investment right now, with taxes if u trading it a lot, and swap it into real money. Some special situations exists, where it is tax-free.

[heringasem]

Of course that they are taxable, but it all depends on how are you going to withdraw your bitcoins.. If you are in the US they are going to tax you all your bitcoins with aproximately 15% of what you cashout (max 25k per year)

[ritik01]

Tax season can be confusing enough with complicated rules about what types of income are taxable and which are not, and there are bound to be questions about how Bitcoin relates to taxes. However, users will have to look into the tax requirements for whichever country they are paying taxes in and sort out how their home countries classify cryptocurrencies like bitcoin. the Government to put tax because is bitcoin is anonymous, they can not distinguish the owner because of its hidden nature.  Transaction seem to be charging according to the rules.

[UZIzzzz]

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.

Yes, should be the currency of the investment to set the duty-free limit, you make money the country wants to levy tax on you, so if you lose money, and will not give you free, this is obviously not scientific.

[infposs]

taxable is a trend as more and more people get involved in.

[LuckyHopper18]

Yes, governments right now are making moves on how to impose tax on bitcoin. In the US they already had made laws on how they can get tax from bitcoin and I heard UK have also made a law for it.

[ampg]

Every country has its own rules on what and how to levy taxes. I do have to smile at the OP when BTC was $5. If we knew then, we could have put a few bucks aside.

When do you plan to return the account you stole?? pginvest is not your account!

[jahmes123]

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?

Not at the moment, I believe. I think the government would have to legalize bitcoin first for it to be entitled of tax. It is not legal to tax something that is not legalized nor identified by the government as something that can be really stable to apply tax. This is good as well because it doesn't lessen the possible earnings.

[randy321]

This is probably one question that you don't want to ask on forums.  Different countries have different laws, and there is a lot of nuance about when you bought/sold/mined it, whether you have a company set up, etc etc.  Spend some money and talk to an accountant.  It will be a good investment for you.

[DewiKirana]

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?

Even though I live in America, I'm sure the government will find it difficult to determine the tax on bitcoin. Bitcoin has a complicated system, the government has to make regulations about bitcoin taxes and definitely take a long time. So now bitcoin is not taxed.

[bryant.coleman]

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?

Even though I live in America, I'm sure the government will find it difficult to determine the tax on bitcoin. Bitcoin has a complicated system, the government has to make regulations about bitcoin taxes and definitely take a long time. So now bitcoin is not taxed.

There is no tax on Bitcoins, but you definitely have to pay the taxes once you convert Bitcoins to cash. This tax can be ordinary income tax, if you are not claiming long-term capital gains. As such there is no specific tax law regarding profit from crypto-currency. But right now, the taxes which are applicable on the sale of digital assets will apply on Bitcoins.

[matanglawin]

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?

Since it is decentralized, I think it is not. That's the huge difference between Bitcoin and fiat. Fiat are centralized so governments are able to put a tax on each of the transactions. So since it happened that Bitcoin is decentralized, governments will not be able to tax every transaction. There are ofcourse fees on the transactions but I doubt that it is tax since no one is taking control of it.

[supercanada1]

If government wants to tax it i am pretty sure they will find a way to do so but currently it is not taxable unless converted to fiat.

Not only converted but it will get higher than this and will be huge investment for all people. For me if bitcoin will be taxable then it will get high and become legally acceptable so it is going to be beneficial for bitcoin and will give it benefit to government as well. I know bitcoin will be acceptable by all people and bitcoin users will pay for tax on time and will not delay this kind of act like paying for tax.

[Baaboylep]

In my country,  if you have The Bitcoins you didnt pay the tax for your Bitcoin.  Maybe you must pay when you changer your Bitcoins to $

[markleal]

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?

Hi there shooter_mcgavin! As far as I know it hard to impose tax to bitcoin alone specially if you are just mining it on you own. What I think that could be taxable is the profit you generate from trading bitcoins. You could see some exchange that reminds people to pay tax, some even ask for your tax reference number. This shows that the exchanges is currently or will collect a certain amount that will go thru as a tax. There could be some company that will follow this steps but by now, I seen none, and hope some don’t follow. 

[Karakyli]

The topic for May 2011, which discusses taxation of bitcoin in the US, when it was still worth $ 5, was accidently caught on the eye. It seems that it was recently, but what is the difference in the price of bitcoin.
    And only in 2017 the US government finally decided on the taxation, which did not cause special joy to its citizens. We can say that it is one of the most stringent in the world.

[rontoberth]

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

There's no way I can do it, I've read that in other countries they're being pursued by police intelligence just for an excuse of unnecessary energy expenditure. What do you think about this?

[ShadowBits]

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 they can take taxes from Bitcoin using exchanges, we pay for fees so maybe all exchanges takes a little bit of that to just pay for the taxes we take.

[Dhaaaw]

If your morals allow you to not pay taxes then no bitcoin is not taxable, since its not traceable unless you put your information to the public and even then, the law can't persecute you since they cant be sure if that wallet might be yours or not. And that's in my opinion why most countries are hesitant about bitcoin knowing it would cause a tax evasion chaos.