Quote from: soham on November 30, 2017, 09:32:36 AM

Quote from: notthematrix on November 28, 2017, 07:33:43 PM

This is a legal issue no one has been able to answer me about

If you win bitcoin with investment, it's easy to declare

What about bitcoins you earn from jobs ( bounties, regular incomes for helping teams in moderation, etc.) ? It is a job and an income but in bitcoin, so how is it considered and declared?

I consider my bitcoin income as actual income only when I exchange it to fiat. So I may have 1 bitcoin in my wallet and I cashed out 0.3 bitcoin to my bank account. So I will consider that 0.3 bitcoin equivalent of cash as my income and I will report it to my tax information sheet. I won't report my entire holding of 1 bitcoin because it is not actually received and infused in to economy.

So it doesn't matter how many bitcoins you earn from various sources like bounty, moderation, referral income etc. unless and until you cash it out, it can't be considered as your income as per the tax law in majority of the countries. I follow the same thing.

This is quite logical if you earned bitcoin. Only me interested in this question. What if you bought bitcoin? In this case, you have to pay tax only on the difference between purchase and sale. It is a tax on capital gains. But how can you prove that you have spent a certain amount of money to buy bitcoin?