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RE: Bitcoin Trading Hits $3.5 Billion In India as HNIs Get Hit With Tax Notices!

in #bitcoin7 years ago

Yeah, Frank and I were looking into that the other day. In Canada, if you earn on Steemit and then convert it to another crypto and right away to CAD, then it's considered income. If I leave it in another crypto and that grows, it's considered capital gain. We only get taxed on capital gain once we cash it out in fiat, and from that about, we are taxed on half of it, which adds to our total revenue. It's a bit complex but we sorted a few things out for each our portfolios to make sense of it all. The important part os to keep track, like with CoinTracker and to print up your exchange history of trades and such. Then your income tax report person will take care of the rest.

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This is a real potential game changer for taxing - it could get over the top. Capital gains must be tiered like they do for fiat. the thing is converting fiat to cryptocurrency has a fiat fee; then you exchange to another cryptocurreny - then another trader and blockchain fee, then converting back to fiat is another fee. Primary fiat taxing should only occur once (or at worst twice) - the rest stays crypto.

I agree. There should be no taxation for trading crypto to crypto at all. Only if traded to fiat.

Yes otherwise that would defeat the object of decentralized exchanges.