As I understand, today the taxman treats bitcoin as another asset like a stock. You bought some, you sold some and you pay a capital gains tax.
It’s not fully clear for me how the taxman treats when you sent your bitcoin to another person. I think they may (or already) treat it as a sale, then you are liable to pay the capital gain tax.
To summarize, the less the gov knows about you bitcoin , the better.
So again, return to fiat is the problem. Otherwise, sending and receiving bitcoin, peer to peer, KYC doesn't matter.... Again, until you try to return to fiat. And if you're avoiding taxes, your a criminal, not just being private.
Yes it does matter. Not just governments who are a threat either.
KYC data can accidentally leak or be hacked. Happens all the time. Now how much Bitcoin you bought, your name, address, etc are in the public available to any criminal.
https://github.com/jlopp/physical-bitcoin-attacks/blob/master/README.md
It's not just okay, but a virtuous and a moral duty to avoid theft from the state (aka taxes) that they overwhelmingly use to cause harm to others. Deprive them as much as you can.
No, not only returning to fiat.
If you send peer to peer to another person, you need to reflect it in your tax statement. And for me it’s still unclear if you need to pay a capital gain tax or not in this case.
It depends how the taxman treats sending btc from one person to another.
Just imagine that you have 1 bitcoin and send 0.5 to me. If the taxman considers that you “sold” those 0.5 to me , then the capital gains tax can be a considerable amount and you will think twice if it’s reasonable.
Do you pay taxes if you sell a used bike to a neighbor? You're supposed to, in most states.
Becomes pretty interesting when you start diving down there, right? Gifts?
Did you just move it to another wallet? What's classified as a spend or a send? How can you tell the difference on chain?
If using law, can you prove beyond a shadow of a doubt, "highly probable" or "most likely" doesn't win.
Thanks for engaging. Real talk is good.
Also, the receiving person also needs to reflect the received amount in the tax statement and also may need to pay an income tax.
