bdl1165
new to the crypto currency world , have a few question , when you convert your crypto to cash and it is deposited in your account, can you be charged taxes on that or are you simply converting one unit of currency into another?
new to the crypto currency world , have a few question , when you convert your crypto to cash and it is deposited in your account, can you be charged taxes on that or are you simply converting one unit of currency into another?
I'm also quite new to the topic. From what I know it can be considered simply as a conversion... fees may apply, but I haven't heard of any taxes being applied (yet). Wouldn't be surprised if governments and regulators would try to do so tho in the future/long term.
Cheers,
Dave
my thinking is as long as the original investment is not divulged which is the primary purpose of the cryptocoin world then how would anyone know at what rate your investment incresed, if you bought bitcoin at .52 and sold it at 1800.00 how could the governemnt state or local or the bank know when you bought it and how much gain you realized so technically it would not be income it would just be conversion, but i think i am under thinking this.
I guess it al depends on where you live, regional laws etc. In some countries it is even on the tax sheet you have to fill in amount of currencies you own, and if they go up in value and you sell m it is possible you have to pay tax on "special income" or something, try to Google : your country + tax + Bitcoin ... Good luck!