[Solved] Cashing Out - Seek Local Tax advice
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I’ve come to terms with the taxable income on cashing out any coins I may have, as well as any fees that come when withdrawing money from an exchange. Now is there any method that anyone has found which is cheapest to cash out your coins with or a website to cash them out on? How about cashing out and avoiding taxes? When I do end up cashing my coins, I, like most of you, would love to be able to save/avoid losing as much money as possible.
Thoughts and suggestions?
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I’m still unsure of how crypto earnings are taxed, and I suspect it varies in different countries. When I cash out I’ll probably use localbitcoins to my BA.
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[quote name=“TheCannon” post=“47845” timestamp=“1388165954”]
I’m still unsure of how crypto earnings are taxed, and I suspect it varies in different countries. When I cash out I’ll probably use localbitcoins to my BA.
[/quote]I’ve come to believe that any earnings from cryptocurrency will come down as capital gains in Canada, which 50% is taxed with a percentages taken from the tax bracket that you are currently in.
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Surely that’s only 50% on the profit you made?
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There’s a cash-out discussion going on right now, maybe there’s an answer that might fit your problem.
[url=http://www.reddit.com/r/Bitcoin/comments/1tt6ie/how_did_the_bitcoin_millionaires_sell_their/]http://www.reddit.com/r/Bitcoin/comments/1tt6ie/how_did_the_bitcoin_millionaires_sell_their/[/url]
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[url=http://bitcoinmagazine.com/8839/declaring-bitcoin-income-part-1-preparing-your-records/]http://bitcoinmagazine.com/8839/declaring-bitcoin-income-part-1-preparing-your-records/[/url]
[url=http://bitcoinmagazine.com/9016/declaring-bitcoin-income-part-2-bitcoin-ordinary-income/]http://bitcoinmagazine.com/9016/declaring-bitcoin-income-part-2-bitcoin-ordinary-income/[/url]
[url=http://bitcoinmagazine.com/9189/declaring-bitcoin-income-part-3-bitcoin-asset/]http://bitcoinmagazine.com/9189/declaring-bitcoin-income-part-3-bitcoin-asset/[/url]
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[quote name=“kris_davison” post=“47879” timestamp=“1388175880”]
Surely that’s only 50% on the profit you made?
[/quote]Yes, my mistake for the sentence. Cash out $10,000, you will be taxed xx% on $5000 of that $10,000.
Thank you for the links everyone else (sorry I don’t know how to add more than one quote).
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Good job I haven’t got any Bitcoins!
Or live in the USA, those potential Tax laws made the UK comedy show “Yes Prime Ministers” famous Civil Service Gobbledegook, look logical…
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[url=http://www.coindesk.com/hrmc-decides-rethink-tax-stance-bitcoin/]http://www.coindesk.com/hrmc-decides-rethink-tax-stance-bitcoin/[/url]
Interesting article.
