• About
  • Contact
  • Privacy Policy
  • bitcoinBitcoin$7,346.20-1.49%
  • ethereumEthereum$146.96-1.66%
  • xrpXRP$0.215995-1.80%
  • bitcoin cashBitcoin Cash$208.59-2.61%
Cryptovibes.com - Daily Cryptocurrency and FX News
  • Home
  • News
  • Analysis
    TRXUSD - Daily Chart

    Tron Price Analysis: TRX/USD Ranges as the Price May Further Drop

    USDJPY Price Is Ranging Within an Ascending Channel

    ADAUSD - 4 Hour Chart

    Cardano Price Analysis: ADA/USD Tests the Previous Support at $0.0365; Price May Decline Further

    We are Not Developing New Digital Currency, MUFG Bank Says

    State Digital Currency Not in Demand in Japan: Central Bank Governor Says

  • FX Industry
    Robinhood Claims to Have 10 Million Users, Bigger Rivals in Danger

    Robinhood Claims to Have 10 Million Users, Bigger Rivals in Danger

    Spotware’s New Ctrader Platform Comes with Improved Features

    Spotware’s New Ctrader Platform Comes with Improved Features

    USDJPY Price Is Ranging Within an Ascending Channel

    MOEX Reports Lower Forex Volumes in November 2019

    MOEX Reports Lower Forex Volumes in November 2019

    ESMA Greenlights Austrian Watchdog's Product Intervention Measures

    ESMA Offers Q&A Updates on Product Interventions Measures

    USDCHF Price Penetrated the Demand Level of $0.99 Downside, Targeting $0.98

  • Though Leadership
    TRXUSD - Daily Chart

    Tron Price Analysis: TRX/USD Ranges as the Price May Further Drop

    LTCUSD - Daily Chart

    Litecoin Price Analysis: LTC/USD Bears Are Still in Play; Price May Continue to Plunges

    What Must Happen for Ether to Explode to $170 This Black Friday?

    A ‘Black Hole’ May Swallow Cash-Settled Bitcoin Futures Traders’ Investments, Says Antonopoulos

    Africa Has the Future of Bitcoin in Its Hands, Jack Dorsey Says

  • Crypto
    Bakkt CEO Kelly Loeffler Steps Down to Become a Georgia Senator

    Bakkt CEO Kelly Loeffler Steps Down to Become a Georgia Senator

    We are Not Developing New Digital Currency, MUFG Bank Says

    State Digital Currency Not in Demand in Japan: Central Bank Governor Says

    SoFi Obtains BitLicense from New York DFS

    SoFi Obtains BitLicense from New York DFS

    CryptoBridge Crashes Out Blaming Regulations And Market Conditions

    SoftBank Unveils Debit Cards Featuring Built-In Blockchain Wallet

  • Autotrading
    • Bitcoin Billionaire
    • Bitcoin Circuit
    • Bitcoin Era
    • Bitcoin Evolution
    • Bitcoin Future
    • Bitcoin Lifestyle
    • Bitcoin Loophole
    • Bitcoin Profit
    • Bitcoin Revolution
    • Bitcoin Rush
    • Bitcoin Trader
    • Immediate Edge
      • Celebrities
      • Kate Winslet Bitcoin
      • Holly Willoughby Bitcoin
      • Ant McPartlin Bitcoin
      • Nicole Kidman Bitcoin
      • Jim Davidson Bitcoin
      • Peter Lim Bitcoin
      • Mike Hosking Bitcoin
  • PR

    BitcoinCasino.io Adds Games Powered by No Limit City

    Gold Fields Limited’s Two New Bonds Raise a Staggering $1bn

    Todaytrader.com Makes It Premium Courses Available for Free

    Zilliqa Launches Education Initiative in Partnership with Award-Winning King’s College London Blockchain Society

    Block Society

    Block Society, the First Cryptocurrency Advising Firm Registered with the SEC

  • Dislaimer
No Result
View All Result
Cryptovibes.com - Daily Cryptocurrency and FX News
No Result
View All Result

Cryptocurrency Taxes: How Much Bitcoin is Taxed and What Are Your Responsibilities?

Justin B. by Justin B.
June 10, 2019
in Press Releases, WISDOM
9 min read
Share on FacebookShare on Twitter
Vytautas Zabulis, Co-Founder & Managing Director of HODL Finance shares insights regarding cryptocurrency taxes.
Vytautas Zabulis, Photo: Judita Grigelyte (VZ.lt).

On September 7, finance ministers from the European Union met in Vienna to discuss the volatile nature of digital assets. Their, but also other politicians’ concern about cryptocurrencies is in regard to crypto’s general lack of transparency and their potential to get misused by black marketers.

Cryptocurrencies started out as a new, decentralized way of paying for goods.

Until very recently, this meant that Bitcoin and other cryptocurrencies were not subject to any official regulation that applied to fiat currencies. Not being backed by any government, bank, or financial system, the digital money existed in a limbo created by high-powered hardware and persistent miners.

No IRS, no taxes, no accountability.

Bitcoin shortly became synonymous with hassle-free trade, but also with illegal deals.

Regardless of whether black marketers are the ones to blame, the legal system now treats cryptocurrencies as any other asset. This implies taxability too, as one of regulations enforced by the US Internal Revenue Service and its counterparts throughout the world.

The truth is, it was only a matter of time.

To pay with Bitcoin, you now must pay for Bitcoin first.

Here’s what it means, and how much it costs.

How Are Cryptocurrencies Taxed in the First Place?

Cryptocurrencies are still as decentralized as currencies can be, which means that IRS and similar institutions recognize that they are not being issued by any country or central bank. This is why cryptocurrencies cannot be treated as money, nor can they be taxed in the same way as fiat currencies.

But, they can and are taxed as assets.

With cryptocurrencies making their owners solvent, but still not being equivalent to money, they cannot be treated as anything but intangible properties. This applies to every type of crypto and any amount, regardless of whether you’re buying or selling them, and especially if you use them as money.

Here’s a list of taxable crypto activities:

●   If you’re selling personally mined Bitcoins to a third party, your Bitcoins are taxable.
●   If you’re reselling your Bitcoins, they are once again taxable.
●   If you’re paying for goods and services with any kind of Bitcoins, they are taxable.
●   If you’re investing in something with any kind of Bitcoins, yes, they are taxable.

What Are Your Responsibilities as a Crypto Taxpayer?

Your responsibilities as a crypto taxpayer depend on whether you’re a crypto miner as well.

If you’re selling cryptocurrencies that you’ve mined yourself, or if you’re using personally mined cryptocurrencies to pay for goods and services, then these new regulations issued by the likeness of IRS legally oblige you to report your transactions and be taxed for either personal or business income.

If, on the other hand, you’re reselling your cryptocurrencies, or if you’re paying for goods and services with a cryptocurrency that you’ve previously bought from somebody else, then you are legally obliged to pay capital gains tax, since the IRS and others treat these cryptocurrencies as investments in assets.

How Much Do These Taxes on Cryptocurrencies Cost?

In case you’re being taxed for personal or business income, you must report every fiat currency revenue that you get for selling your personally mined cryptocurrencies, in full amount. So, if you mine a single Bitcoin and sell it for $250, that’s the exact amount you must report as your taxable income.

Luckily, mining expenses, such as the cost of computer hardware or electricity, are deductible.

In case you’re being taxed for capital gains, the amount of money you’ll have to pay depends on how long the cryptocurrency was in your possession in between the moment you bought it and the moment you sold it or used it to pay for goods and services. The math is a bit more complex here.

Let’s say you’ve bought a Bitcoin for $250 and sold it for $300 in less than a year. In this case, you’ll be taxed for short-term capital gains on the $50 you’ve earned in the meantime, at the rate equivalent to the ordinary income tax rate. So, if the holding period is less than a year, you’re paying income tax.

But, if your holding period is longer than a year, then these $50 that you’ve earned in the meantime will attract long-term capital gains tax, which is calculated at a rate lower than the ordinary income tax rate. Bear in mind that this long-term capital gains crypto tax comes with limited tax deductions.

How can something as volatile as cryptocurrency be taxable at a steady rate, you ask? The IRS has obviously found a way, which is why you need to track your crypto assets with great precision. Be consistent in your reporting, and use LIFO or FIFO accounting methods to reduce your tax obligations.

Alternative – crypto-backed loans

A handy alternative to selling crypto-assets is crypto-backed loans that share these qualities because they are:

Safe: crypto securely stored according to highest standards
Available 24/7: automatically calculated without credit checks
Fast: loans issued instantly
Exempt from tax: differently than selling, borrowing is not taxed


Please note: This article is not a financial nor tax advice. Cryptovibes.com does not endorse any descisions. Readers should do their own research before investing funds in any financial asset or attending any presented event. We are not responsible for any profit / loss your descisions might lead to.

Follow us on Facebook , Twitter and Telegram
Like what you're reading? Subscribe to our top stories
Cryptocurrency Rates Live



Tags: BitcoinBTCCrypto-backedcryptocurrencyEUEuropean UnionFIFOFinancehodlLIFOLithuaniaLoansTAXTaxesViennaVytautas ZabulisVZ

Related Posts

Analysis

State Digital Currency Not in Demand in Japan: Central Bank Governor Says

December 4, 2019
Crypto news

CryptoBridge Crashes Out Blaming Regulations And Market Conditions

December 2, 2019
Blockchain

SoftBank Unveils Debit Cards Featuring Built-In Blockchain Wallet

December 2, 2019

About CryptoVibes

CryptoVibes (formerly FXTimes) is a daily Cryptocurrency and Forex industry news website that has covered the latest news in the industry since 2017. Our goal is to drive transparency in the finance industry and provide news for our users on blockchain, exchanges, business and industry regulation.

Trending Topics

  • 5 Quick Ways to Buy Bitcoin With PayPal
  • Bitcoin Revolution Review 2019 : Comprehensive Sign Up Guide
  • Bitcoin Loophole Review 2019 » Comprehensive Sign Up Guide
  • Bitcoin System Review 2019 » Complete The Bitcoin System App Guide
Avatar

Justin B.

Justin is the CEO of Small Partnership 'Decentralizuotas'. He believes in a new financial era driven by blockchain and digital currencies. Also, Justin rides MTB. A lot.

Facebook Twitter Instagram Telegram RSS Youtube

Information

  • About
  • Contact
  • Privacy Policy

Registered UK company no. 11705811. For advertising inquiries please reach us via email hello@fxtimes.com

Note that the content on this site should not be considered investment advice. Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site.

Newsletter

Like what you're reading? Subscribe to our top stories
Main Bandar Poker Online Merangsangkan Taruhan Untuk Menang Penuh

Kalau Anda mengerti beberapa Main dengan referensi dibawah berikut ini, Anda akan membuat instruksi bikin Dikau buat dapat mainkan bagian pandang pada musuh. Kesudahannya pada saat Anda punya satu kartu yg sedikit untung, tentu saja Kamu dapat mainkan bagian ranggul itu.

Sampai bikin sampar memahami kemenangan Anda tandus langkah mutlak. Tetapi pra Anda mengerti bagaimana mainkan bagian pandang, tentu aja Anda lalu harus bisa terima bagian pandang dari musuh dengan sesuai beserta. Oleh karenanya Anda siap memahami jika pekerjaan ini demikian dapat diuntungkan jika dilihat dari sisi renung yg sesuai dengan. Oleh karena itu, beberapa orang pada Kamu tentu saja sadar jika pekerjaan main poker online demikian dapat digunakan bikin memicu keuntungan lewat langkah kusut. Tetapi sebenarnya pekerjaan ini harus Anda sadari ada sangat banyak strategi didalamnya yg harus Anda dapat aplikasikan.

Beberapa dari Anda pasti saja memahami jika ada keuntungan pada saat tiket besar bandar Poker Online terlihat. Barisan 5 tiket yg terlihat tentu aja ada salah satunya yg besar serta dapat bikin Anda dapat memakai bikin membuahkan keuntungan. Oleh sebab Main Bandar Poker Online itu permainan itu bisa berikan suport Anda memicu keuntungan yg subtansial jika diproses melalui langkah yang sesuai.

Beberapa dari Anda yang tentu memahami permainan ini antara satu yang dapat bawa serta Dikau membuahkan keuntungan. Dimana di saat Anda dapat mainkan bagian pandang dari sampar jika Anda menggenggam tiket yg sama besarnya. Karenanya pada saat kartu As yg terlihat tentu aja akan bikin Anda kian baik bikin kerjakan all in saja. Meski demikian mungkin masih musuh Dikau terlihat namun sebenarnya Kamu dapat membuahkan keuntungan yang semakin besar dengan menggetarkan beberapa musuh.

Trick Berjalan Bandar Poker Online Yang Jarang-jarang Terlihat
Kalau Dikau adalah orang yg seringkali main judi online, tetap saja Anda mengerti Permainan Bandar Poker Online dapat mendatangkan keuntungan yg subtansial. Permainan ini demikian dapat dimenangi pada saat Dikau dapatkan gabungan kartu mengelokkan tinggi bikin dapat mengakibatkan keuntungan yg subtansial. Per judian online dengan menggunakan sajian Poker Online antara wahid yg demikian menarik dalam dunia. Banyak sebagian orang2 yg membuahkan keuntungan daripada permainan ini pada beserta sisi yg dapat beralih jadi seseorang profesional kuat.

Agar Anda dapat memicu keuntungan lewat langkah ruwet. Antara dari Anda seharusnya pahami jika permainan Poker Online dapat berikan suport membuahkan keuntungan kalau diproses dengan strategi yg serasi. Sebenarnya begitu banyak kurang lebih macam yg tidak terlihat oleh banyak sebagian orang2 namun seringkali Anda dapatkan pada permainan ini.

Tata Menang Mainkan Kesempatan Flush
Anda harus memahami jika 5 kartu dengan sekar yg sama tipenya siap membuahkan flush. Oleh kesudahannya Anda harus pahami dan kemudian jika pekerjaan ini siap membuahkan keuntungan yg subtansial kalau diproses dengan pantas dengan. Pada saat ada 3-4 kartu yg demikian dapat termasuk bikin sampaikan suport Anda buat memicu flush, jadi Anda bisa membuahkan keuntungan besar.

Copyright © 2017-2019 Cryptovibes.com. Price data provided by our official partner CoinGecko.

No Result
View All Result
  • Home
  • Crypto news
  • Analysis
  • Editors’ Choice
  • Entertainment
  • Press Releases
  • ICO
  • Wisdom
  • Coins List
  • Advertising
  • About FXTimes
    • Privacy Policy
    • Terms of Use
    • Donate

Copyright © 2017-2019 Cryptovibes.com. Price data provided by our official partner CoinGecko.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.