BEGIN WITH DOUBLE TAXATION OF BITCOIN

edward2222

Credit to: OffshoreNewsFlash: http://www.offshorenewsflash.com/2015/04/13/new-jersey-to-begin-with-double-taxation-of-bitcoin/

Here’s the thing with Bitcoin and state or national governments. Bitcoin is not “legal tender” anywhere in the United States. You can say the same about Bitcoin and pretty much any sovereign government on Earth. You cannot pay your taxes, parking tickets, or any state fees with Bitcoin. It is not accepted as money by any government. So where does the business ethics argument come from that it is indeed taxable by the state if it has no real value to the state? Bitcoin is, in effect, a digital marker of value to individuals and a few cutting-edge businesses. Yet, New Jersey sees fit to tax Bitcoin as property for owners, and as a taxable “barter transaction” when used for a retail transaction. So Bitcoin gets none of the benefits of being a currency in the state of New Jersey, but all of the downside of being “legal tender”.

Seems like a bad news
for people who uses Bitcoin.. tsk2x...

Does anyone here also affected by this?

UCDVet

edward2222 wrote: »

Credit to: OffshoreNewsFlash: http://www.offshorenewsflash.com/2015/04/13/new-jersey-to-begin-with-double-taxation-of-bitcoin/



Seems like a bad news
for people who uses Bitcoin.. tsk2x...

Does anyone here also affected by this?

Maybe I'm misunderstanding - but that seems like the same way they treat anything of value in the US, that isn't legal tender. If someone gives you a brand new car worth $25,000 USD, you still have to pay taxes on it. But a car isn't legal tender. You can't pay your taxes with a car. It has a value though, and it is taxable.

If someone gives me $100,000 in cash, I'd have to pay taxes on it. If someone gives me $100,000 worth of bitcoins, I'd have to pay taxes on it. And if someone gives me $100,000 worth of real estate, I'd also have to pay taxes on it. Seems pretty reasonable to me.

But again, my apologies if I'm misunderstanding.

edward2222

UCDVet wrote: »

If someone gives me $100,000 in cash, I'd have to pay taxes on it. If someone gives me $100,000 worth of bitcoins, I'd have to pay taxes on it. And if someone gives me $100,000 worth of real estate, I'd also have to pay taxes on it. Seems pretty reasonable to me.

hhhhmmmm I dont agree on that, if someone gives you $100,000 in cash, its up to if you declare it, if your in that situation, would you
declare that someone gives you money and volunteer to pay tax for it? I dont think so.

But again, my apologies if I'm misunderstanding.

Its okay my friend

barneystinson

edward2222 wrote: »

hhhhmmmm I dont agree on that, if someone gives you $100,000 in cash, its up to if you declare it, if your in that situation, would you
declare that someone gives you money and volunteer to pay tax for it? I dont think so.


Its okay my friend

Well my friend, the tax system here is a self assessment one, so ehhhhm yeah, most people probably would declare the 100k... Otherwise we wouldn't collect much tax...

edward2222

barneystinson wrote: »

Otherwise we wouldn't collect much tax...

You collect back the tax you payed? Sorry, but I think I'm missing something (facepalm)
What country your in now my friend?

barneystinson

edward2222 wrote: »

You collect back the tax you payed? Sorry, but I think I'm missing something (facepalm)
What country your in now my friend?

Well it's an Irish site Edward...

I think you definitely are a couple of sambos short of a picnic on this one

edward2222

barneystinson wrote: »

Well it's an Irish site Edward...

I think you definitely are a couple of sambos short of a picnic on this one

Ahhh I see, just realized that I'm asking the obvious question. (facepalm again)

Anyways you have a Bitcoins?

CIARAN_BOYLE

edward2222 wrote: »

hhhhmmmm I dont agree on that, if someone gives you $100,000 in cash, its up to if you declare it, if your in that situation, would you
declare that someone gives you money and volunteer to pay tax for it? I dont think so.

Or you could face audit penalties and interest so most people declare it. Same with Bitcoin, its up to you to declare it.

edward2222

CIARAN_BOYLE wrote: »

Same with Bitcoin, its up to you to declare it.

But its not anymore.

barneystinson

edward2222 wrote: »

But its not anymore.

Why, what's changed (in Ireland)?

edward2222

barneystinson wrote: »

Why, what's changed (in Ireland)?

I dont really know whats the effect on this in your country, but here in my country, it really has a huge effect, there are many thing we can do using
bitcoins, but, since this taxation comes up, many stopped in engaging and
exchanging using bitcoins, you know, most of the people
here who use bitcoin are tax evaders, so I think that's the reason.

barneystinson

edward2222 wrote: »

I dont really know whats the effect on this in your country, but here in my country, it really has a huge effect, there are many thing we can do using
bitcoins, but, since this taxation comes up, many stopped in engaging and
exchanging using bitcoins, you know, most of the people
here who use bitcoin are tax evaders, so I think that's the reason.

So why are you starting a thread about it for discussion on an Irish site full of Irish peopleliving in Ireland, when you don't know or care what the the Irish situation is...?

You also haven't even said what country you're in, or what specifically has changed there?

Worst thread ever.

edward2222

barneystinson wrote: »

So why are you starting a thread about it for discussion on an Irish site full of Irish peopleliving in Ireland, when you don't know or care what the the Irish situation is...?

I didnt say I didnt care, I didnt know the Irish situaion, thats the reason why I'm asking, get the idea?

Worst thread ever.

okay.

barneystinson

edward2222 wrote: »

I didnt say I didnt care, I didnt know the Irish situaion, thats the reason why I'm asking, get the idea?.

No I don't get the idea.

You didnt even seem to realise you were in an Irish forum until I pointed out the obvious to you.

You STILL haven't told us what country you're in, so tell us, WHAT COUNTRY ARE YOU IN, and WHAT HAS CHANGED THERE IN RELATION TO TAXATION OF BITCOIN??

After we establish that, we can (if you genuinely care) discuss whether the change where you are, will have any impact in Ireland, where we are...

You get the idea...??

Arbiter of Good Taste

edward2222 wrote: »

I dont really know whats the effect on this in your country, but here in my country, it really has a huge effect, there are many thing we can do using
bitcoins, but, since this taxation comes up, many stopped in engaging and
exchanging using bitcoins, you know, most of the people
here who use bitcoin are tax evaders, so I think that's the reason.

You really are not making any sense, so I suspect you have no idea what you are talking about.

A tax evader is someone who illegally avoids paying tax. If you are saying that most people use Bitcoin to evade tax, then that suggests the value of Bitcoin was already taxable in your country.

Nevertheless, you will find that most classical taxation systems will tax the market value of non monetary assets

edward2222

barneystinson wrote: »

You STILL haven't told us what country you're in, so tell us, WHAT COUNTRY ARE YOU IN, and WHAT HAS CHANGED THERE IN RELATION TO TAXATION OF BITCOIN??

I'm in Asia, I dont want to tell what country I am right now because I usually travel in different countries here for my businesses, my answer today may not my answer tomorrow

Well, there are lot of changes in bitcoins here, most of bitcoin hunters here
are not anymore active in exchanging them due to tax reasons.

edward2222

Arbiter of Good Taste wrote: »

You really are not making any sense, so I suspect you have no idea what you are talking about.

A tax evader is someone who illegally avoids paying tax. If you are saying that most people use Bitcoin to evade tax, then that suggests the value of Bitcoin was already taxable in your country.

Sorry for not being precised, many of the tax evaders in this country use the bitcoin to take advantage on it, because theyre not only evading tax, but
they are also avoiding it.

Past year, the bitcoin is not yet taxable here, you can always buy/exchange
whenever you want without paying taxes on it, but now, every transaction
is tracked and its nearly impossible for someone to evade/avoid it, so the
exchange here is change, I dont know how to explain it to you guys.

In the first place I just want to ask if something change in your country,
in related to bitcoins. If not then you can direcly "No, nothings change
were not affected"... hhhhmmm

;);)

namenotavailablE

It should be pointed out that the charter for the tax forum specifically prohibits threads along the lines of illegally evading tax liabilities.