click here if you want to see your banner on this site

Author Topic: What about Bitcoin and taxes?  (Read 1241 times)

alexnikon911

  • Jr. Member
  • **
  • Posts: 56
  • Karma: +0/-1
    • View Profile
What about Bitcoin and taxes?
« on: June 23, 2017, 08:07:33 PM »
Bitcon - this is not fiat money, they are not binding to acceptance in any jurisdiction. However, taxes are often charged regardless of the means of payment used. There is a wide range of laws, in a large number of different jurisdictions, which can become the basis for the appearance of tax liabilities regarding income, sales, wages, capital gains, and some other forms of taxes when Bitcoin is used.

Kateryna_Oli

  • Full Member
  • ***
  • Posts: 125
  • Karma: +0/-2
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #1 on: June 25, 2017, 11:34:39 PM »
I found very interesting article about relationship between Bitcoin and taxes, and about importance of this.
http://nypost.com/2017/04/08/no-you-cant-avoid-taxes-by-investing-in-bitcoin/
LuckyToken ICO has already started!

mihohil

  • Jr. Member
  • **
  • Posts: 92
  • Karma: +2/-2
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #2 on: June 26, 2017, 11:07:17 AM »
Whenever bitcoin is bought, sold, or traded, there are tax impacts.

NanaLelyakova

  • Garden Hero
  • Sr. Member
  • *****
  • Posts: 273
  • Karma: +2/-5
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #3 on: June 26, 2017, 01:47:54 PM »
"Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value."

Virtual currency "does not have legal tender status in any jurisdiction."
"Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as 'convertible' virtual currency."
"Bitcoin is one example of a convertible virtual currency."
"Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies."
Tax Treatment:

"For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency."
"A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received."
"Transactions using virtual currency must be reported in U.S. dollars" on the tax return.
"Taxpayers will be required to determine the fair market value of virtual currency in U.S. dollars as of the date of payment or receipt."
"If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars ... at the exchange rate, in a reasonable manner that is consistently applied."

alexnikon911

  • Jr. Member
  • **
  • Posts: 56
  • Karma: +0/-1
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #4 on: June 26, 2017, 02:08:52 PM »
As I know transactions using virtual currency must be reported in U.S. dollars.

liliiaolivia

  • Jr. Member
  • **
  • Posts: 98
  • Karma: +0/-1
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #5 on: June 26, 2017, 06:19:34 PM »
Investors with trading losses, on the other hand, might not be so happy with the ruling. It will be much more difficult to write off bad Bitcoin bets now that they are considered property rather than currency.

Read more: Bitcoin Tax Guide: An Introduction | Investopedia http://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/#ixzz4l7sHrQ54
Follow us: Investopedia on Facebook
LuckyToken- Lottery on Blockchain | Crowdsale: 22/01/2018 - 22/02/2018

karasurizero

  • Jr. Member
  • **
  • Posts: 96
  • Karma: +0/-1
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #6 on: June 26, 2017, 06:32:40 PM »
I think it is good source for you in this question: https://www.thebalance.com/how-bitcoins-are-taxed-3192871

denny.pac

  • Novice
  • *
  • Posts: 28
  • Karma: +0/-0
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #7 on: June 26, 2017, 07:16:51 PM »
I think that this is superfluous
The more bitcoin does not have the popularity among the people that would somehow influence the economy

serhishulak

  • Jr. Member
  • **
  • Posts: 90
  • Karma: +0/-0
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #8 on: June 26, 2017, 11:28:46 PM »
People who use Bitcoin know how to outwit any laws and so on, so as not to pay for them. To learn this is not necessary enough google.

Natalia_Volkova

  • Novice
  • *
  • Posts: 41
  • Karma: +1/-0
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #9 on: June 26, 2017, 11:46:19 PM »
If you are an employer paying with Bitcoin, you must report employee earnings to the IRS on W-2 forms. You must convert the Bitcoin value to U.S. dollars as of the date each payment is made and keep careful records. Wages paid in virtual currency are subject to withholding to the same extent as dollar wages.
Employees must report their total W-2 wages in dollars, even if earned as Bitcoin. Self-employed individuals with Bitcoin gains or losses from sales transactions also must convert the virtual currency to dollars as of the day earned, and report the figures on their tax returns.
Bitcoins held as capital assets are taxed as property

katepagava

  • Full Member
  • ***
  • Posts: 183
  • Karma: +0/-5
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #10 on: June 26, 2017, 11:58:42 PM »
People who use Bitcoin know how to outwit any laws and so on, so as not to pay for them. To learn this is not necessary enough google.

I would disagree, read the article on this topic
http://nypost.com/2017/04/08/no-you-cant-avoid-taxes-by-investing-in-bitcoin/

katepagava

  • Full Member
  • ***
  • Posts: 183
  • Karma: +0/-5
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #11 on: June 27, 2017, 12:01:55 AM »
I think the prise of taxes is quite justified...  ::)

dimadimaivchenko

  • Novice
  • *
  • Posts: 39
  • Karma: +0/-0
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #12 on: June 27, 2017, 08:01:52 AM »
very nice topic for a brainstorm!

liliiaolivia

  • Jr. Member
  • **
  • Posts: 98
  • Karma: +0/-1
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #13 on: June 27, 2017, 11:25:46 AM »
Taxes are often charged regardless of the means of payment used. There is a wide range of laws, in a large number of different jurisdictions, which can become the basis for the appearance of tax liabilities regarding income, sales, wages, capital gains, and some other forms of taxes, using Bitcoin.
LuckyToken- Lottery on Blockchain | Crowdsale: 22/01/2018 - 22/02/2018

NanaLelyakova

  • Garden Hero
  • Sr. Member
  • *****
  • Posts: 273
  • Karma: +2/-5
    • View Profile
Re: What about Bitcoin and taxes?
« Reply #14 on: June 27, 2017, 01:58:18 PM »
Anything that you receive as payment for goods or services is generally taxable income unless it is specifically exempted.

That means, if you mow your neighbor’s lawn, it doesn’t matter if he pays you $20 in cash, or $20 worth of bitcoins. (Or $20 worth of tomatoes for that matter)

In many jurisdictions, you are still legally required to report that as income. When using Bitcoin for payment the taxing authorities may be less likely to be aware of the payments but try to mow 10,000 neighbor’s lawns and not report the income and you will be much more likely to get caught.


 

Bitcoin Garden 2013-2024, All rights reserved | Privacy Policy | DMCA | About Bitcoin Garden | Support & Services