Topic: Bitcoin will be taxed in the US as property, not currency... (Read 885 times)

Bitcoin will be taxed in the United States property, which would legalize that the Bitcoin will, I think this is excellent.

thanks to IRS my coworkers heard of bitcoin 

I think it would be difficult to calculate how much you should pay ! Still I didn't got it - what if you get coins in one price and then the price would change, How much you should pay if you buy something using your bitcoins?

What do you think is it good changes that before they used to talk about btc as currency and now they are going to talk about it as a property? won't it make difficulties ?

Sign in a Petition:(US citizens only)
AMEND IRS NOTICE 2014-2Taxing virtual currency/bitcoin as property stifles new technology&creates untenable requirements
https://petitions.whitehouse.gov/petition/amend-irs-notice-2014-2taxing-virtual-currencybitcoin-property-stifles-new-technologycreates/z7WtKZGY

I think it needed time to become steady! Will see how it actually would work but I think this change is for goood

Could you elaborate a bit more on this. do I understand that a business entity (recognized by the IRS), which I believe would be corporations and declared S corps (LLCs are generally treated as partnerships or sole proprietors however can elect to be taxed as C or S Corp) would not be required to report any capital gains? And would thus be only required to report the sale of their coins as business income?


I guess this could solve a lot of problems for those that don't wish to deal with the capital gains mess?


Thanks for your input

General tax principles applicable to property transactions also apply to the use of virtual currency transactions. So Bitcoin become the property of the!

This is some interesting times for us bitcoin users indeed not sure how to interpret all this news but I'm still a bear that is for sure.

The Internal Revenue Service (IRS) in the US has declared Bitcoin as ‘Property’, as opposed to currency, and will be taxed as such. To those involved in the Crypto community, this represents a significant change in the way that Bitcoin vendors trade.


For vendors and traders accepting payments in Bitcoin in the US, profits will be treated as ‘Capital gains’ as opposed to income. This means that they will be subject to a lower taxation rate, with a maximum long-term tax rate of 20%, as opposed to the maximum income tax rate of 39.6%.

For miners of Bitcoin, the taxation rates are a little more tricky; Miners that produce their own bitcoins are charged two lots of tax. Firstly, they must declare the ‘fair market value’ of the virtual currency (on the day that it is mined) as a part of their gross income. This will then be subject to capital gains tax at the point of sale. The taxpayer must take this fair market value on the date of acquisition as the basis price for the coins. Capital gains will be due on the difference between that basis price and the sale price. If however, an individual mines bitcoin as a business, the net earnings from that business will be treated as self-employment income, and will be subject to self-employment tax...

Read more at: http://www.coinchilli.com/bitcoin-will-be-taxed-in-the-us-as-property-not-currency/


J.C Axe