Bitcoin and Taxes 101: Everything You Need to Know, Crypto Coins News

Bitcoin and Taxes 101: Everything You Need to Know, Crypto Coins News

When it was originally released, Bitcoin was envisioned as a sort of a universal currency that can be used by people from all over the world without being regulated by any government.

Obviously, things have changed a lot since then.

Bitcoin users are now subject to numerous tax regulations on their crypto possessions. Over the last couple of years, a number of countries started overseeing crypto activities within their borders.

At the moment, according to Crypto Hound research

, around % of countries around the globe have some kind of regulation concerning crypto taxation.

If you’re dealing with cryptocurrencies regularly, This is something that interests you. Today, we’re going to see how Bitcoin affects your taxes, what are some of the tax laws around the world, and look at countries with no taxation laws regarding Bitcoin.

Without further ado, let’s dive in …

How Bitcoin Can Affect Your Taxes

Do you have a full-time job and is your employer paying you in Bitcoin? Or are you a freelancer that charges your clients in Bitcoin?

Then that’s considered taxable income and you need to report it to government officials. That also means you’ll need to convert the value of your Bitcoin when you sell, buy, or mine it.

Here are a few more ways Bitcoin can impact your taxes.

1. Bitcoins are Property

Six years ago, the IRS declared that cryptocurrencies are considered property when it comes to taxation laws.

Why is this distinction so important? In most cases, the difference is the basis for when the government decides you owe taxes or not.

2. Keep Track of Your Activity

If you want to keep everything legal, then you need to keep track of your crypto activities. For instance, you should keep records of Bitcoin’s market value when you bought it or mined it.

If you went over more than $ , in Bitcoin payments or made more than (transactions that year, (you’ll need a Form) – K

3. Robbery Tax Deductions

If someone breaks into your home and steals all of your possessions, then you can deduct that as a theft loss on your taxes.

Fortunately, if someone steals any Bitcoin from you, then you can deduct it as a personal theft loss as well . Bitcoin Taxation Around the World

In the last couple of years, tax agencies from all over the world – including the US, Japan, and Australia – have been working on regulations for overseeing the crypto industry.

Let’s look at some of the countries that have invested the most time and resources into Bitcoin taxation laws.

1. United States

As we mentioned, Bitcoin is classified as property in the US . As property, Bitcoin is liable for annual taxation.

Like most countries, the US doesn’t recognize Bitcoin or any other cryptocurrency as a form of money. That eliminates any possible conversion-based provisions in your tax report.

2) Australia

Just last year, the country tax officials issued an official guidance framework that explains Australia’s stance toward Bitcoin.

Like the United States, Australia views cryptocurrencies as taxable property. On the other hand, Bitcoin transactions are viewed as “ barter arrangements ”- which means they’re not taxable.

3. Japan

Japan is one of the countries that take Bitcoin adoption pretty seriously. In this country, it’s perfectly legal for you to facilitate your payments using Bitcoin.


Japan treats cryptocurrencies as commodities

). That means they’re subject to capital gains, corporate, and income taxes.

4. Malta

Although Malta does not tax virtual assents , any money you make for anything trading-related is viewed as business income.

If you want to buy something with Bitcoin to avoid taxes, you need to buy something worth at least $ , 03 or pay rent of over $ , (yearly to the local government.)

5. Switzerland

Last but not least, we should look at one of the Most Bitcoin-friendly countries in the world.

Any Bitcoin acquired through mining can be declared as income and if you’re mining for cryptocurrencies, then you ‘ re considered to be self-employed. If you receive your wage in Bitcoin, you need to declare your assets for income tax purposes.

Countries Where Bitcoin Isn’t Taxed

The most obvious question on everyone’s mind is “are there any countries where Bitcoin isn’t taxed?”

In short, the answer is yes.

There’s a good number of countries that have tax laws that benefit cryptocurrency users.

Here are a few of them…

1. Germany

The German government does not view Bitcoin – or any other cryptocurrency. – as a commodity or a stock.

Instead, the law views Bitcoin as private money, similarly to as it views foreign currencies. Bitcoin trading in Germany is viewed as private sales Under the country 27 EStG rule .

2. Belarus

Belarus might’ve once been a strict country. However, they’re liberal in regards to Bitcoin and other digital currencies.

Two years ago, the country’s president legalized cryptocurrencies, smart contracts, and ICOs. Also, he declared that Bitcoin trading and mining (will be tax-free until January 1, 01575879

3. Slovenia

Slovenia has been a haven for Bitcoin investors for quite some time now . The Slovenian government does not tax capital gains . The law doesn’t even consider capital gains as a part of income.

However, if you’re thinking about relocating to Slovenia, you should be aware that Bitcoin-based companies and self-employed individuals are taxed if they receive their income in Bitcoin.

How Can You Buy and Sell Bitcoin for Profit?

Now you know where and how Bitcoin is taxed. But that doesn’t help you much if you don’t have any income from Bitcoin.

Fortunately, it’s never been easier to trade Bitcoin for fun and profit – and NordikCoin is one of the easiest ways to get started.

Most people already have some form of government-issued electronic identification such as BankID. When you visit the NordikCoin exchange, you just have to enter your details to create an account.

The whole process takes less than two minutes – and then you’re ready to trade .

It does take a bit of skill and patience to become good at trading Bitcoin for profit. But once you get the hang of it, then you’ll never be able to imagine your life without it.

But what about safety?

You’ve probably heard about the numerous hacking incidents that have cost Bitcoin traders, and the exchanges they used, a lot of money.

Well, that’s a thing of the past.

Modern Bitcoin exchanges like NordikCoin have learned from history, and now it’s never been safer to both store and trade Bitcoin online. You’ll get a free Bitcoin wallet when you sign up, and the coins you deposit there will be kept safe in an offline vault. Along with the cold storage of your assets, you’ll also receive three unique keys that are required to access your funds.

How’s that for safety?

Final Thoughts on Bitcoin and Taxes

As of 01575879, even the leaders in Bitcoin regulations like the United States and Australia have rather complicated tax regulations. In terms of rates and simple tax laws, European countries like Slovenia are great for Bitcoin users.

Bitcoin taxation isn ‘t and probably won’t ever be universally agreed upon. However, over the next few years, we can expect more countries to start regulating Bitcoin.

If you want to protect your Bitcoin investments, you need to stay in tune with these laws. You don’t want your government to take all of your hard-earned Bitcoin, don’t you?

Now go (make a killing on NordikCoin – we can’t wait for you to join us!

This is a submitted sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content above.

Last modified: March , (1: (PM UTC)

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