Taxes and records

Most countries tax bitcoin in some way, but usually not for owning it. Tax tends to arise when you dispose of it: sell it, swap it for another coin, or spend it. Rules differ a lot between countries, so this lesson explains the common patterns and the records that help, not the rules where you live.

What usually is and isn't a taxable event

You…	In many countries
Buy bitcoin with money	Not taxable by itself, but record it: it sets your cost.
Hold it, however much the price rises	Not taxable until you dispose of it.
Move it between your own wallets	Usually not taxable. Keep records showing both wallets are yours.
Sell it for money	A gain or loss, compared with what you paid.
Swap it for another coin	Usually treated like selling.
Spend it on goods	Usually treated like selling, at the value on that day.
Get paid in it, or mine it	Usually income, at the value when you received it.
Give it away, or inherit it	Varies most from country to country.

Losses matter too: in many places a sale at a loss can be set against gains.

Records worth keeping

• For every purchase, sale, swap and payment: the date, the amount of bitcoin, the price in your currency, and any fees.
• Exchange statements, which most exchanges let you download. Download them regularly: an exchange that closes takes its history with it.
• Transaction IDs for moves between your own wallets, so a transfer isn't mistaken for a sale.

Tax offices can see more than people expect

Exchanges keep identity records, and in many countries they must report customers' trades to the tax authority. Dozens of countries have agreed to swap that information with each other under an international standard, with the first information swaps due in 2027. The chain itself is public, so a wallet that an exchange knows is yours can be followed afterwards.

This is general information, not tax advice. For your own situation, check with the tax authority where you live or a qualified adviser.