Tax rules on bitcoin differ greatly between countries and change often. This lesson is not tax advice: it gives the principles that come up almost everywhere, so you know which questions to ask.
Common principles
- Disposals are often taxable: selling for currency, and in many countries also swapping for another asset or spending bitcoin on goods.
- Gains are computed from the cost basis: what you paid, including fees.
- Income in bitcoin, such as salary, mining or rewards, is often taxed at its value when received.
- Moving coins between your own wallets is usually not a taxable event.
- Holding periods can change the rate in some countries.
Keep records
Note the date, amount, value in your currency and purpose of every purchase, sale and payment. Exchanges can close and data can disappear; your own records last. When in doubt, ask a professional who knows the rules of your country.