How's that? If Bitcoin is not a currency, you may still have to pay taxes on it. It can be considered as property or commodity, and then you will have to pay the property tax when you sell your bitcoins.


In many areas you still have to pay income tax.

hi and welcome to bitcoin

if the bitcoins were held for more than a year, long-term capital gains tax rates are applied. ... Thus, individuals pay taxes at a rate lower than the ordinary income tax rate if they have held the bitcoins for more than a year.

thankyou

Currently united states don't have any specific tax on bitcoin or doesn't declare BTC to be taxable separate from other income. So you can pay a combined tax on it. I mean you can club the btc income along with your other incomes and calculate normal tax as per the slab rates on it.

I think there is no tax on bitcoin because it's an online job but what others say is there. Whenever bitcoin is bought, sold, or traded, there are tax impacts. We'll discuss how bitcoins and other forms of virtual currency are taxed, and point out record keeping requirements and tax planning techniques that can be utilized.

Technically saying the answer is "No", bitcoin works on a algorithm which is excluded from the tax system. We generally need to pay fees for processing our transactions to support the working of the system, leaving that there are no extra expenses like taxes on bitcoin which is a perfect example of a decentralized system. But in the recent days government are trying to tax bitcoin, and is misconception that bitcoin is also taxable, but one should realize that they are only imposing taxes when bitcoin will be converted into local currency otherwise they cannot track the transactions of particular user.

As far as I know if you have a business where you use Bitcoin as a form of cash then it is taxable. What I know also is that if you are exchanging it via exchangers and withdrawing it through your bank accounts then it is not taxable.

The IRS said that the bitcoin should be treated as an asset or an intangible property and not a currency, as it is not issued by central bank of a country. Bitcoin's treatment as an asset makes the tax implication clear.

Well yes if you lived in the USA you would be in a bunch of trouble. Last week congress is trying to or successfully passed a law that makes it illegal to conceal bitcoin in the US which means you would be in hot water. But it does depend on where you live because taxation is 4% in the Netherlands I believe 0% in some weird island nations but in most 1st world countries you should pay 15-20% tax as it is capital gains.

Every country has its own rules on what and how to levy taxes. I do have to smile at the OP when BTC was $5. If we knew then, we could have put a few bucks aside.