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Author Topic: If you get paid in Bitcoin do you have to pay taxes?  (Read 4499 times)
Bitcoin Magazine
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October 13, 2014, 04:47:04 PM
 #1

And is this going to be an issue in the future?  moving money around to keep the govt. off your backs, etc..

i am here.
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transient858
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October 13, 2014, 04:47:44 PM
 #2

Of course.

Not doing so will only invite trouble down the road.
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October 13, 2014, 04:50:31 PM
 #3

Yes. You are going to deal with bank and the government. So, you need to pay the tax.
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October 13, 2014, 05:02:19 PM
 #4

The government does not give two hoots how you get paid, if you get some they want some....  Grin
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October 13, 2014, 05:06:59 PM
 #5

just translate into dollars when you recieve BTC. should be ok then.

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October 13, 2014, 05:09:26 PM
 #6

There is no such thing as tax free income. You will have to pay income tax on bitcoin you earn from work, and capitol gains on any appreciation in value. Of course you can claim a loss if bitcoin depreciates.

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October 13, 2014, 05:09:56 PM
 #7

It all depends on the laws of your country. Some wont require taxes unless you exchange it to fiat, but many countries will try tax it in the future.
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October 13, 2014, 07:59:34 PM
 #8

And is this going to be an issue in the future?  moving money around to keep the govt. off your backs, etc..
No.  It is not necessary to pay taxes if you earn in bitcoin only.  Besides, how can your employer send a W9 form to the government?  That form has no place for bitcoin.

Bitcoin earnings are to be considered tax free.



This lady said it best: "Taxes are only for little people"  She had 5.4 billion - so she knows a lot about taxes

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cp1
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October 13, 2014, 08:01:02 PM
 #9

It's just like when you get paid in cash.

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October 13, 2014, 08:02:59 PM
 #10

Sorry, but TAX apply to "physical good" ... and "working for something".
If you move BTC to your familly, you don't have (need) tax to do this (except fees of the bitcoin network).




https://www.youtube.com/watch?v=Oj8eFu72_fc


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October 13, 2014, 08:03:49 PM
 #11

It's just like when you get paid in cash.

Exactly!
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October 13, 2014, 08:09:16 PM
 #12

If you are paid in apples, would you have to pay taxes? Depends. If the one that's paying you has his own apple trees, it can go silent.

One of the main reasons the governments don't like crypto is because they cannot control it. Giving them more reasons to hate it is not a great idea imho, so I'd pay the taxes. Not nice, but yeah.. the chances they find out and catch you are not that small. Bitcoin is not that anonymous. There are ways to trace that income. And if you want to convert to fiat at some point, ... they will try to trace that.

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October 13, 2014, 08:16:19 PM
 #13

IRS "Virtual Currency Guidance": http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance

Quote

-- Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.

-- Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply.  Normally, payers must issue Form 1099.

-- The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.

-- A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.



tldr: Yes.

Bitcoin is the first monetary system to credibly offer perfect information to all economic participants.
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October 13, 2014, 10:59:41 PM
 #14

You have to pay taxes for merely breathing.

Saying that you don't trust someone because of their behavior is completely valid.
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October 13, 2014, 11:02:11 PM
 #15

How about the UK? I think there are no BTC taxes.


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bitgeek
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October 13, 2014, 11:04:16 PM
 #16

My answer is you should, but you don't have to.
You just have to be careful and prepared to face the consequences.


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tzortz
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October 13, 2014, 11:06:09 PM
 #17

Depends on the country.

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October 13, 2014, 11:25:36 PM
 #18

The only time you should pay taxes is if you owe them. If you owe them, then it is honorable to pay them. However, you might be able to get out of paying them.

The point is to get paid in a way that you don't owe taxes. File your W-4 "non-assumpsit" and exempt. This means, no IRS contract = no taxes.

Study here to learn about it and a whole lot of other things:

http://www.myprivateaudio.com/Karl-Lentz.html = Angela Stark's Talkshoe.

http://www.youtube.com/channel/UC5duR4OvEHHxOSdEZhANETw = TrustInAllLaw snippets of Karl's audios.

http://www.broadmind.org/ = Karl's main page.

http://www.unkommonlaw.co.uk/ = Karl's United Kingdom page.

http://www.youtube.com/user/765736/videos?view=0&live_view=500&flow=grid&sort=da = Craig Lynch's snippets page.

http://www.youtube.com/watch?v=HOkAHRzuiOA&list=PLHrkQxgz0mg6kUBciD-HIvTXByqjcIZ-D = Ten great Youtube videos, might be the best introduction to Karl.

http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=127469&cmd=tc = Karl's Talkshoe site.

http://www.youtube.com/watch?v=Iua56K4Mysk = Karl Lentz - The Brian Bonar Incident - YouTube.

http://www.youtube.com/watch?v=cdHLHWS4gPE = Lentz-Sense - don't be a More~On - YouTube.


Other Info

http://voidjudgments.com/ = The Secret is most judgments are Void on their face and not merely voidable.

http://educationcenter2000.com/Trinsey-v-Paglario.htm = Trinsey v. Pagliaro - Attorneys cannot "speak" in common law trials if the one who is bringing the suit orders it. Holding from Trinsey v. Pagliaro: "An attorney for the plaintiff cannot admit evidence into the court. He is either an attorney or a witness."

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October 13, 2014, 11:30:35 PM
 #19

It depends one which country.  I will be very interested to watch this develop, but yes most countries will want taxes.  

Take the US for example though.  If you sell things on the internet to people in other states or countries, they do not have to pay taxes.  

There might be some loopholes.  After all "Bitcoin isn't a currency" in many places.

I mean basically, if I get paid in baseball cards, the government doesn't tax those. 

NEM
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October 13, 2014, 11:33:43 PM
 #20

And is this going to be an issue in the future?  moving money around to keep the govt. off your backs, etc..

Isn't Vitalek the creator of Bitcoin Magazine?

NEM
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