Questions tagged [taxes]

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

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15
votes
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 ...
14
votes
2answers
1k views

Tax implications in Canada of buying and selling Bitcoins?

What taxes should be paid in Canada on Bitcoin transactions? Has anyone gotten official advice on this? Is it relevant whether the Bitcoins were mined, received as payment for services, bought and ...
9
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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 ...
8
votes
1answer
565 views

bitcoin knowledgeable attorneys?

I'd like to accept freelance work with bitcoin, probably a large enough amount to consult a lawyer. What kinds of questions would you ask to make sure they're competent? How would you go about ...
7
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6answers
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 ...
6
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3answers
616 views

bitcoin donations tax deductible?

I work as a volunteer for a tax exempt organization in the US. We are currently accepting donations in bitcoin but not issuing receipts for those donations. I would like to start issuing receipts. ...
6
votes
2answers
328 views

Should earnings in Bitcoin converter to a traditional currency be treated as trading-income or non-trading income for tax purposes?

Should earnings in Bitcoin converter to a traditional currency be treated as trading income or non-trading income for tax purposes (for example, in Ireland)? Reason for them being considered trading ...
6
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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 ...
5
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2answers
287 views

If miners pay income tax, could a change in tax laws affect network security?

Assuming that more than half of the Bitcoin miners pay taxes on revenue gained, could a increase in income tax laws (or similar) cause those ethical miners to go out of business? ... and the Bitcoin ...
5
votes
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? ...
4
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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?
4
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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 ...
4
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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 ...
4
votes
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 ...
4
votes
1answer
1k views

How to file bitcoin income to the IRS as a nonresident alien

I am a Chinese student in US right now, and my taxation status is Nonresident Alien. Since IRS has announced bitcoin as "property", I just wonder how to define my gains from my sell of bitcoin in US....
4
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2answers
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 ...
3
votes
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 ...
3
votes
4answers
1k views

If you trade with bitcoins, how do you manage to “explain” anti-laundering authorities the money-in & money-out?

When trading with bitcoins using mtgox, or bitcoin-24, or bitcoin.de, you will have in your account many transfers of money, to many people and from many people. In europe if the sum of the ...
3
votes
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 ...
3
votes
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 ...
3
votes
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, ...
3
votes
1answer
75 views

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
3
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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 ...
3
votes
1answer
359 views

Mt. Gox losses for tax purposes

If I put $50 into Mt. Gox in February 2013, made multiples trades from BTC to USD and back, always remaining in the Mt. Gox system, and then lost all of it in the March bankruptcy, how do I handle ...
3
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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?
3
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0answers
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 ...
2
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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 (...
2
votes
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 ...
2
votes
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. ...
2
votes
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: ...
2
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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?
2
votes
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?
2
votes
1answer
666 views

what are my tax implications for cryptocurrency?

Do I pay any taxes to purchase or sell bitcoin? If I use a Bitcoin debit card and withdraw USD from an ATM, is it a taxable event?
2
votes
1answer
451 views

Is it legal to trade bitcoins on coinbase/mtgox in the US?

I am just wondering whether it is legal to trade bitcoins in the US just like we do for stocks? I see similar legal questions about selling OTC, but I am more interested in buying and selling in well ...
2
votes
1answer
213 views

Tax deduction for US-based employer paying in Bitcoin to overseas contractor

My employer can write off business expenses (my salary) if he pays me via wire transfer, PayPal, Payoneer and some other international payment systems. Is there a tax-deductible method for him to buy ...
2
votes
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 ...
2
votes
0answers
2k views

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!
1
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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 ...
1
vote
1answer
69 views

Would a service for automated repurchasing of Bitcoins encourage spending?

We launched Reload, an online service that binds your bitcoin wallet to your bitcoin exchange account (16 supported so far): whenever you spend bitcoins from your wallet, Reload will use your exchange ...
1
vote
1answer
827 views

Canadian Taxes for Buying Bitcoins

I saw this post, but it really didn't help me. How should I fill out my tax forms if I am only buying and holding bitcoins, not selling them? This page appears to suggest that I only need to worry ...
1
vote
1answer
43 views

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 ...
1
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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 ..? ...
1
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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,...
1
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1answer
2k views

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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0answers
59 views

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 ...
1
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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? ...
1
vote
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 ...
1
vote
0answers
18 views

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 ...
1
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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?
0
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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 ...