Quote from: Lampaster on January 30, 2018, 05:15:45 PM

Quote from: plavirudar on January 30, 2018, 01:43:50 AM

Quote from: 1NV3ST0NM3 on January 25, 2018, 04:59:45 PM

Bitcoin currently is taxed only by the South Korean govt. at a rate of around 23%. But tax can be collected merely on amount which you withdraw in exchanges. So the simple rule to save tax on all your crypto earnings is to store the bitcoins in a private key wallet where you don't need to do any KYC compliance. So you are anonymous just with your wallet address. But the problem is that you won't be able to get a fiat conversion of your bitcoins until you bring them to exchanges.

That is not correct, at the very least the US IRS has already released documents which clearly state that mining and trading BTC are taxable actions, the former incurring income tax and the latter incurring capital gains tax.

It does not happen. Even in the US you have to pay tax only after the exchange the bitcoin for Fiat. In order not to pay taxes it is enough that you are not using exchange. Perhaps in the future it will be possible to buy and sell goods with bitcoins. This saves us from having to pay taxes. To ban such deals will be difficult. Therefore, the government will be forced to accept the bitcoin currency.

Please, no one in the US listen to this person. This is a blatant falsehood. People who mine cryptos realize a taxable event the moment a coin is mined (due to accounting difficulties, it is likely administratively acceptable to do this every 1 coin as opposed to for every miniscule block reward split among members in a pool). Even if the coin is not sold for fiat, IT IS TAXABLE.

Furthermore, exchanging the coin for something else of value (in whole or in part) is going to create a taxable event where you must calculate your basis and recognize the appropriate amount of gain at the time of the transaction, if this gain is on a capital asset and has been held for more than a year (such as Bitcoins held for personal investment by an individual), it will be entitled to favorable capital gains treatment. If, however, the coins are held in a pool by a partnership (LLCs included unless they make the check-the-box election) or S-Corp, the taxes must be paid on gain as of the last day of the partnership's taxable year. This is true EVEN IF the coins ARE NOT SOLD FOR FIAT OR OTHERWISE EXCHANGED FOR ANYTHING.

To the person I quoted, please don't give people bad advice. It's okay to say you don't know or you're not sure if you're right. But don't claim to be an expert on things you know nothing about because people might trust you, make a bad tax decision, and then blame cryptos on the whole for their problems.