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US Taxable Events for using Bitcoin for purchases

HR 3708, which was introduced in the House of Representatives in September 2017, would do exactly that, with a threshold of $600 (to be adjusted for inflation). It has five cosponsors. It was ...
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4 votes
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Consider using Bitcoin but just heard the IRS is sending tax notices to 10k plus users

Bitcoin doesn't use RSA and there is no encryption or cryptography that hides transaction details. Bitcoin is pseudonymous, not anonymous. There are unique identifers for every participant in Bitcoin, ...
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  • 62.3k
4 votes

Do I have to pay taxes on a Bitcoin investment when I'm withdrawing it to my US bank account before I actually received the money?

You are definitely being scammed - you should write off the $500 as an expensive lesson and never deal with these people again. No legitimate company operates in such a way. $200 on a $18500 profit is ...
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  • 16.5k
3 votes

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

Considering that the US dollar has lost 90% of its purchasing power over the last 100 years you should be worried regardless of cryptocurrencies.
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3 votes

What does the IRS tax in terms of bitcoin practices

They tax the exact same things as if you'd done those things in Thai Baht, or Nigerian Dollars, or British Pounds. If you view ads, that's income. If you buy gold, and it appreciates, that's capital ...
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  • 28.7k
3 votes

What to do when you genuinely don't understand anything about taxes, yet are apparently expected to pay them for your Bitcoin?

If I cannot understand the laws/regulations, what am I supposed to do? A fairly widespread legal rule is that ignorance of the law is no defence. If you don't understand how the law applies to your ...
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3 votes
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Estimating Cryptocurrency Gap

Since Bitcoin is a global network without user registry or other user telemetry that is designed to provide cash-like financial privacy, it is inherently difficult to: measure user counts assign ...
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  • 64.5k
2 votes

Would a service for automated repurchasing of Bitcoins encourage spending?

This seems rather odd to me. I try to time my purchases with Bitcoins for times when the price is high. And I try to time my purchases of Bitcoins for times when the price is low. If I use a service ...
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2 votes
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Canadian Taxes for Buying Bitcoins

That's correct. You have no taxes and no need to report them if you have not sold/spent any of the coins in the tax year. You do need to keep records of your purchases, because when you do come to ...
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2 votes
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Is Bitcoin given as a gift taxable?

This is probably better for Money.SE as it doesn't really have anything to do with Bitcoin; it would be the same for any sort of income. However, my understanding of tax law with respect to gifts is ...
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2 votes

Bitcoin and Company Launching

Bitcoin is generally accepted in France however the government seems to be very willing to prosecute anybody who is in breach of reporting or other laws. Somewhat recent proof: http://www.reuters.com/...
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  • 1,679
2 votes

In India how does one accept or give Bitcoin? Do we also get a physical coin for a Bitcoin?

I would go to localbitcoins.com open an account and find a trusted seller with a reputation of 100% and 100plus customers to buy them from a local agent. Be smart about the price of the agent vrs ...
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  • 21
2 votes

Bitcoin taxes question for USA

Bitcoin is taxed as capital property (see IRS Notice 2014-21), and a tax event occurs any time it is converted into fiat (e.g. USD) or other assets. You would have to record each transaction and ...
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2 votes
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Do I need to pay taxes if I sit on (do not use) bitcoins?

No. Assuming you are not a miner or receiving bitcoin in exchange for services, there are no taxes that you need to pay on the bitcoins until you sell or transfer them. When you sell or transfer them, ...
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2 votes

How can the government tax you using bitcoin

Governments can set up laws and regulations and then set up "departments" to monitor and enforce. Whether it is successful or not is another question. No doubt they will have to skill up and ...
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2 votes
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Should USD savers be concerned about the rising popularity of cryptocurrencies?

Let's compare the total size of circulating BTC to US dollars. According to coinmarketcap.com, the total value of all Bitcoin is 250 billion as measured in US dollars. Throw in Ethereum, Bitcoin Cash, ...
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2 votes

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?

If this is a true gift, that is, not part of any larger transaction and given out of the kindness of your heart, then you're probably going to have to consult a tax professional because this will ...
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2 votes
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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? There appears to be an obstacle in law: German labour law sets ...
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2 votes

For tax purposes, how much is Bitcoin is worth if you send it to an exchange and sell it immediately for fiat?

Tax questions should largely be off-topic here, as they are so jurisdiction-specific. But nonetheless, a general answer is sort of possible here: In many jurisdictions, you will be liable to pay ...
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  • 17.4k
2 votes

Who in their right mind would waste their Bitcoin on taxes or buying random stuff?

Paying taxes / buying goods / etc with Bitcoin, is equivalent to selling the Bitcoin and paying with fiat, except that it might be more convenient and save transaction costs to do it in one step. ...
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2 votes

Which country is the Bitcoin core wallet in?

Bitcoin Core is open-source software run by you. Since you control the funds, I would expect that they reside in the same country as you. I am neither a lawyer nor a tax consultant, but you should ...
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  • 64.5k
1 vote

An App for Crypto Currency Tax Declaration

This could have been a question that could be ignored easily until last year. But after the case of IRS and Coinbase, after so many people getting tax notice from Coinbase that their information could ...
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1 vote

Short-term capital gains taxes for crypto to crypto trades?

It will depend on the tax laws in your country. Where I live the tax law treats crypto currencies as an asset and requires that my position be reconciled at the end of each financial year for capital ...
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1 vote

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

According to the guidelines currently provided by the IRS, you are only required to pay taxes if you sell those bitcoin and have made a profit on them. If you are holding, or made nothing, or lost ...
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1 vote

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

In spite of the negative attitude of certain politicians, the Indian government has come to a decision to regulate the market and provide an even playing field for Bitcoin exchanges that have ...
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1 vote

Tax implications of bitcoin income

The idea is to sell the bitcoins in India and wire him back the money from the sales proceeds in India. Translate: The idea is that he commits tax fraud because he will not report the sale as ...
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  • 177
1 vote

transferring bitcoin among friends and taxes

Not a tax expert and this is not tax advice, just my understanding: A taxable event does not occur when the bitcoin comes into your account, any more than it would if you were depositing US dollars ...
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1 vote

transferring bitcoin among friends and taxes

They will most likely see any BTC credit in your account as "income" and you are taxable for it, unless you can prove it otherwise. This is a matter of when the IRS will start cracking down on these ...
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1 vote

Who would buy my bitcoin? (Hypothetical question)

A lot of exchangers have such liquidity but you will encounter issues with withdrawal limits depending on your verification level. Also I don't think you can expect transfers of that magnitude to ...
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