Questions tagged [taxes]

Questions about taxes due to mining, trading, and getting paid in Cryptocurrency.

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Tax implications of withdraw fee from one exchange (Binance) to another GDAX/Coinbase

I transferred 0.2 ETH and 0.3 ETH in separate transfers from GDAX to Binance (GDAX does not charge a fee for this). Then, I transferred back from Binance to GDAX all 0.5 ETH, but since Binance ...
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1answer
40 views

Taxation and Cryptocurrencies

How can a government make people holding Bitcoin pay capital gains tax on their holdings if everyone is pseudonymous? If crypto becomes widely adopted, will we have to rely more on sales taxes (e.g. ...
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1answer
47 views

Do you have to pay income taxes on Cryptocurrency in Canada?

Cryptocurrency Will i have to pay the income tax for that? If so, how much will it be? I can withdraw it here and it's not taxed. and then convert to CAD.
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517 views

Tax implications of bitcoin income

I have a friend in the USA who can send me bitcoins. The idea is to sell the bitcoins in India and wire him back the money from the sales proceeds in India. What are the tax implications on the sale ...
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2answers
750 views

How I should pay tax if I buy Bitcoin from an overseas friend

Assume I buy 1 bitcoin from an overseas friend which is USD$10 and I sell it in US for $11. is it legal? I am afraid, it would be considered money laundry I will not be able to have official receipt ...
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1answer
112 views

Crypto currency as gift

I'm staying in Germany and I have a friend in India. He has a few ether coins in his wallet in India which he bought mid of 2017. He now wants to sell them. But in India, because of taxes, he will ...
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3answers
194 views

Should USD savers be concerned about the rising popularity of cryptocurrencies? [closed]

I recently took an interest in cryptocurrencies. Mostly, I'm interested Ethereum and Smart Contracts, but all the news about Bitcoin's rising price has prompted me to study currencies and economics ...
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1answer
44 views

Consider using Bitcoin but just heard the IRS is sending tax notices to 10k plus users

article: https://www.cnn.com/2019/07/26/tech/irs-cryptocurrency-taxes/index.html My background: Good understanding of RSA cryptography, some elliptic curve, Number Theory and I am a (real)programmer ...
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1answer
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Holding Period Algorithms and the Blockchain

According to this interview, taxation holding periods in the United States for cryptocurrency can be determined by FIFO (First In First Out), LIFO (Last In First Out), or a more flexible option called ...
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1answer
225 views

Bitcoin Tax Question

I have three scenarios that I have a question about related to bitcoin, the IRS< and taxes. I tried asking the finance types, but they didn't seem to really understand bitcoin and cryptocurrencies,...
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4answers
179 views

cryptocurrency tax question

I have a buddy who I sent money to to buy a certain amount of Ripple. For one reason or another, I couldn't do this on my own at the time. In any case, the currency has tripled and I want him to send ...
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5answers
2k views

How to file bitcoin income to the IRS

I want to check if there is any specific tips how to properly file income from speculation with BTC to the IRS. Also is there any specific report from the Coinbase available?
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2answers
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What does the IRS tax in terms of bitcoin practices

What of the following do I put on the tax form that I got money from a website for viewing ads, donating money, turning gift cards into bitcoin, buying gold, putting money into a bitcoin savings ...
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2answers
150 views

BTC taxation: difference between EU and US

How is it possible in US if someone reveiced salary in Bitcoin, right on that day income become taxable? In Europe, in Hungary only when BTC is sold and sent to a bank account it become taxable. So in ...
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1answer
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An App for Crypto Currency Tax Declaration

For my tax declaration, I would like to use an app that allows me to scan all my transaction. Do you know one ? Or are you interested to use one ? Thanks
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3k views

Any multi-currency accounting ledger that lets me use BTC?

Are there any online or open source (i.e., free, or at least cheap) accounting systems that do multi-currency so that I can record revenues and payments made using BTCs in the same system that I use ...
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2answers
548 views

If I send Bitcoin from the USA to a friend in India, do I have to pay capital gain tax on it if he sells it and makes a profit?

Let's say I buy $10,000 worth of Bitcoin in the USA, which I transfer to my friend in India. He sells it for $11,000 and keeps that money himself as I have gifted him that Bitcoin. My questions: ...
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1answer
62 views

Getting salary in BTC in Germany

Am I allowed to ask my employer (large IT multinational) if I can receive my salary in BTC instead of EUR according to german law? Would I have to pay income tax if I do not exchange them for a year (...
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1answer
57 views

US Taxable Events for using Bitcoin for purchases

Is there any initiative to try to deal with the way Bitcoin is taxed in the United States with respect to using Bitcoin to pay for things without triggering a taxable event? Possibly a threshold being ...
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1answer
37 views

Do we Need Pay Tax for Mining for US Govt

Do you need to pay Taxes for US Govt for doing Bitcion Mining.?? I am in Singapore and mining through one of my friend in US. Will the US Governement will issue TAX on My Name..?? Is it Legit ..? ...
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0answers
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Can I buy cryptocurrency being on H1B Visa?

Can I Buy/Sell bitcoin/Ethereum or get involved extensively in cryptocurrency? If so how much capital can I invest? I am currently on H1B Visa and wanted to get some insight on this. Thanks!
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3answers
7k views

Do I need to pay taxes if I sit on (do not use) bitcoins?

I've done some reading on the IRS bitcoin guidelines and I'm a bit confused how the capital gains taxes works. If I buy some bitcoins in Jan, the value of the bitcoins double by the of the year but I ...
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2answers
582 views

How are bitcoin trade profits taxed in Poland?

I turned some profit when trading bitcoin on Bitcurex - likely enough to exceed the tax-free income value in Poland. That likely would mean I should declare the profits in my tax return forms and pay ...
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1answer
282 views

How bitcoin tax is calculated?

I bought 1 bitcoin and sold part of it to make cash from time to time. How will tax on this income be calculated?
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148 views

Gift bitcoin more than the annual limit to a friend overseas without tax implications?

If I am gifting my friend say $100k work of bitcoins or any other crypto. Do I have to pay tax apart from the annual limit of $15k. Or will it be cut from my life time limit? My friend he live in a ...
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1answer
264 views

Who would buy my bitcoin? (Hypothetical question)

Lets say if 1 BTC = $1000USD tomorrow and I have around 1000 BTC, how would I sell my 1000 BTC to put $1,000,000USD in my bank account? Even a better hypothetical question. If I go back in time and ...
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0answers
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Do bitcoins count as income in the UK?

I am interested in mining bitcoin here in the UK. I have done a quick search and cannot find anything relevant. If I were to use a cloud mining service to mine bitcoin, would it be counted as income ...
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3answers
2k views

Is Bitcoin given as a gift taxable?

Question by someone who is new to Bitcoin. Bitcoin mining is considered taxable income in the US. However, if it's given as a gift, then should it be taxable under US law?
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2answers
396 views

How would tax and government revenue be enforced in a bitcoin run society?

If we say, hypothetically, the future has a society that runs solely on Bitcoin as its currency. Because of its anonymity how would tax and government revenue be enforced in this society? At this ...
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5answers
5k views

Do you have to pay taxes on Bitcoin revenues? [closed]

Disclaimer: this is not legal advice, and this varies from country to country. If you accept bitcoins as payment, do you have to pay taxes on that? And would you have to write an invoice? Since they ...
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1answer
444 views

Short-term capital gains taxes for crypto to crypto trades? [closed]

If I were to profit off cryptocurrency to cryptocurrency trades throughout the year without ever cashing out my crypto position for USD, would I avoid paying any short-term capital gains taxes on all ...
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0answers
2k views

Cryptocurrency arbitrage taxes in India [closed]

Suppose I buy cryptocurrencies in the U.S. and transfer to my or my parents' wallet in India and sell at a premium and make a profit. Is this profit taxable in India? If so, how is it calculated? ...
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164 views

in the united states if i buy or sell btc should i pay sales tax and captital gain tax?

As the title.suggests. I understand if I sell bitcoins, or make purchases (say I briefly sell for use then purchase good) I should pay capital gain if there was one. But should I also pay sales tax if ...
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2answers
134 views

Indian Government is trying to legalise Bitcoins in India. Why?

The Government of India is trying to legalise bitcoins. So, say I would purchase 25 bitcoins by paying in Indian Rupees to a 'X' Bitcoin company. In turn, my identity could be know by that 'X' online ...
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1answer
370 views

Do I have to pay tax if I buy bitcoins with my USD?

Theoretical question: If I make $1000, which gets deposited into my bank account, and then I deposit that $1000 into a bitcoin wallet the next day, and just sit on it for one tax year, do I have to ...
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0answers
258 views

How do I account for bitcoin profit on UK tax return

I want to cash out some bitcoin with a profit (<£2000) from trading. Do I need to declare it in my next tax statement? Is it ok to just show amount bought and amount held or do I need to ...
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2answers
3k views

transferring bitcoin among friends and taxes

I gave my friend btc (ie sent it to their address) to trade together with their btc last week. I'm suddenly worried about taxes (in the US). If right now, they give me back exactly as much btc as I ...
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1answer
2k views

Government Taxes on Bitcoin in India

What is the tax regulation for Bitcoin in India? If I make profit out of Bitcoin, what percentage will I have to pay to the government?
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1answer
159 views

Rolled out my own no-fiat service. What will the tax man need?

Background: I have programmed my own service using https://bitcore.io and I have a limited company set up in the Uk! My company's original intention was to deal with Paypal transactions. (but we are ...
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4answers
1k views

What prevents Bitcoins for being used to avoid taxation?

Today, states can follow money trails and transaction histories, usually involving checking bank accounts. As as I understand, It's impossible for anyone else to read your Bitcoin transactions and ...
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1answer
93 views

Bitcoins and taxes [duplicate]

Most, if not all governments, have some form of sales tax. What happens to bitcoin value when governments prohibit use of bitcoins to curb evasion of taxes
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1answer
102 views

How do I provide proof of a transaction for tax purposes?

How do I provide proof of a transactions for taxation purposes?
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0answers
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Could bitcoins destroy a government [duplicate]

In theory if bitcoins were to be used by the majority of a population then could the issue arise of a drop in government funds as bitcoins are technically tax free as they is no way of tracking were ...
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3answers
582 views

How can the government tax you using bitcoin

Bitcoin is decentralised and anonymous so how can governments issue /enforce taxes on any transactions made with bitcoin?
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4answers
486 views

Is bitcoin mining a business? [closed]

Just a very quick, and I hope simple question. Is Bitcoin mining classed as running a business? All comments appreciated! Thanks
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165 views

What additional actions should an ethical Bitcoin-related business take with each transaction?

I'm considering starting an ethical business for users that accepts Bitcoin as a payment. My intent is to abide by all laws and interpret them in an appropriate manner. My intent is to abide by ...
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6answers
779 views

For US Tax purposes, is Bitcoin mining more like property, “work to solve a puzzle” or “winning a lottery”?

From a taxation perspective, I think it's important to clarify if running a Bitcoin mining operation is more like property exchange, labor to solve a puzzle, vs winning a lottery that runs every 10 ...
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1answer
369 views

Is there a website that tracks Bitcoin taxes paid to local government?

One thing that would further legitimize Bitcoin with government oversight is the payment of relevant taxes to Federal and State government (in local equivalent currency) for e-commerce and mining ...
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4answers
142 views

Bitcoin taxes question for USA

If one were to receive Bitcoins then immediately use a conversion service (for example to PayPal) would gains/losses need to be recorded? If so, is there any software that can do this automatically? ...
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1answer
262 views

What Bitcoin profitability calculators account for taxation on miner income?

If I were to run a miner, I want to be ethical and pay all relevant income tax and gain all required licensing, etc for my country. My miner income is probably taxed at a 1099 income rate or lower, ...