The IRS currently considers cryptocurrency to be property. But that doesnt mean one should avoid reporting gains. The agency has always been more lenient on taxpayers and investors who jump the gun in this regard. Coming forward sooner rather than later can help prevent stricter penalties or fines because of non-reporting.
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
https://usethebitcoin.com/understanding-bitcoin-and-taxes/
Do we really need to reveal how many bitcoins we have? What are your thoughts on this? Bitcoin as a decentralized system should be tax free. Does this defeat the purpose of the invention? To avoid the centralized system as well as those huge taxes?
Not really. Even though bitcoin is decentralised, it doesn't mean that the government isn't able to tax it. They obviously will and are doing so because they see a huge industry that they could take advantage of in terms of tax revenue.
Decentralisation here is only about the bitcoin network itself. What the government does is out of our control.
In my country, when you lodge a tax return, you only need to mention the amount of gains made through trading or investing in bitcoin, and not the actual amount of bitcoin that you own. Obviously this could be different in different countries. If you're trading a lot of BTC, constantly, on an exchange, and the government asks you for figures, then you should definitely provide them accurately if you want to stay out of trouble.
Else, if you're just using bitcoin without trading it against fiat, I doubt you do.