The World of Cryptocurrency - CryptoTAX
There is a big news that circulates on the web about cryptocurrency a taxable thing but this is only intended for the US-based cryptonians. This will be a step closer to regulate the cryptocurrency and if this will be successful, then the other country may follow.
On Friday morning, U.S. President Donald Trump signed a new tax bill into law, signaling the first major tax overhaul in the U.S. in over 30 years. And while you may or may not have high praise for the bill, one thing is certain: the new tax code is bad news for cryptocurrency investors. Starting Jan. 1st, 2018, all cryptocurrency trades will be a taxable event, including swapping one cryptocurrency for another.
There are some factors that will prompt you to pay taxes on your cryptocurrency such as bitcoin, ethereum, litecoin & etc. but there is some exception on this matter depending on how you get or what you did with your virtual coins. Below are some points on when the coin is taxable by the IRS.
Trading with coins or buying a certain coin with another coin is a taxable event. Let say you have bitcoin in your wallet and you decided to buy ethereum using your bitcoin then you are liable to pay taxes on it.
When you got the coin as mining payout then it is also liable for paying taxes.
Using a virtual coin to pay goods and services.
If you are just holding your virtual coin and you're not trading it into another coin then you're not liable to pay taxes on it until you create a taxable event.
These virtual coins being a taxable entity is so broad that most of the cryptonians were confused and in the balance. There may be loopholes along the way and there may be amendments may take place later. Maybe many of the cryptonians that are US-based will ignore this law of paying taxes since cryptocurrency has an anonymity characteristic and can't be traced. So why paying taxes since the government didn't know that I trade in cryptocurrency but if you've taken that money out through coin base or some other method that is based in the United States, it may not happen now but in the future especially if it was a large amount of money, the IRS is gonna be able to track that back to you once you send money to coin base. The Bitcoin address that you use to send it to coin base is associated with your name and if you didn't know the IRS won a lawsuit against coin base to get customer records going back to 2013. IRS will have a great job to do in tracing those US-based cryptonians on their transactions and many of the cryptonians will test the waters by not paying taxes. Only time will tell if IRS will successfully collect all those taxes coming from virtual currencies.
Nice article
oi whale oh :)
Nice comment =)
thanks :)
It's basically like a video game that people are trying to regulate the in-game currency. It's gonna be extremely difficult to put laws on something thats decentralized.
But I'm sure we'll dance to the beat and until that time comes, we'll have fun not being taxed XD
Surely, many of their citizens who will not pay taxes until IRS device a way to trace their transactions. 🤣
Yep exactly. For my country 80% of people don't pay taxes to begin with... lol!
So I'm sure people earning a lot from crypto wouldn't mind paying. I mean, speaking for myself that is.
But yeah, the IRS in your country is, well.... killer instincts and are very good at what they do. So I'm sure everyone is gonna pay taxes sooner or later.
agree with you, lol
Imposing a tax on cryptocurrency in early days is not a good idea at all. As it's a virutal currency. Yes time will tell that about the IRS performance for collecting taxes. All the best to cryptonian currency holders
For sure, many of our fellow cryptonians who are US-based will ignore this law. 🤣
All the best to US cryptonians holder
yup, are from US bro?
Not at all i m from Pakistan. My point of view is simple. To share grievances and happiness of people. Sharing is caring. Stay blessed. @elizahfhaye
Yup, sharing is caring - agree with you :)
Happy new year....2018
Resteemed and upvoted done
Thanks 😉
Donald Trump should have his attention focused on other things than putting tax in cryptocurrency and most importantly,what will the money realised from the payment of these taxes be done with which will benefit cryptocurrency investors??
Maybe the advisor of Pres Trump advised him to the bill. But im just curious on how they will trace all the transactions took place in the network
Crytpto has come to stay, I see a future that will be Crytpto driven.
Thanks so much for sharing.
this will be the next monetary system
I'm sure the government will definitely do something to take control over cryptocurrency. We must be ready for it.
this is their first move, lol
Nice article I saw it last week when the U.S said they are imposing taxes on crypto well let see how it turns out.but I believe our future here in Steemit is bright
steem now is rising to 8$ as of this writing :)
happy new year ....upvote done
Thanks budd
Vielen Dank 👍