Crypto”currencies” - capital asset or currency?

CryptoJoel

newbie

Activity: 102

Merit: 0

Quote from: miyaka26 on February 23, 2018, 09:38:11 AM

Quote from: CryptoJoel on February 08, 2018, 07:02:00 PM

I’m not well versed in the legal aspects of how governments decide what a cryptocurrency is and how they can profit from it, but recently I had a 32 minute conversation with my bank to remove the cash advance fee from my credit card for purchasing on coinbase. The IRS is taxing crypto holders capital gains tax because they deem cryptocurrencies to be a capital asset. Yet, my bank is charging crypto purchases as a cash advance (like pulling cash from your credit card at an ATM). So my question is, how can cryptocurrencies be treated as a capital asset AND a currency? Shouldn’t they only be able to screw us over for one way or the other, not both? If anyone can shed light on this, I’d be grateful. BTW, I eventually got them to remove the charge, this time...

Where is your country? taxing that is related to cryptocurrency is under the scope of your government laws and regulations, thus both can be treated as a currency and capital asset, most of the countries now implement these types of regulations for every transaction that you will make with your banks or local services will be under this type of jurisdiction, the same thing happens in my country there's a tax for transfers and cash outs.

USA. I heard that Puerto Rico, while a territory of the United States, does not tax on crypto gains, you would first have to be a resident of Puerto Rico for two years... =(

miyaka26

full member

Activity: 476

Merit: 105

Quote from: CryptoJoel on February 08, 2018, 07:02:00 PM

I’m not well versed in the legal aspects of how governments decide what a cryptocurrency is and how they can profit from it, but recently I had a 32 minute conversation with my bank to remove the cash advance fee from my credit card for purchasing on coinbase. The IRS is taxing crypto holders capital gains tax because they deem cryptocurrencies to be a capital asset. Yet, my bank is charging crypto purchases as a cash advance (like pulling cash from your credit card at an ATM). So my question is, how can cryptocurrencies be treated as a capital asset AND a currency? Shouldn’t they only be able to screw us over for one way or the other, not both? If anyone can shed light on this, I’d be grateful. BTW, I eventually got them to remove the charge, this time...

Where is your country? taxing that is related to cryptocurrency is under the scope of your government laws and regulations, thus both can be treated as a currency and capital asset, most of the countries now implement these types of regulations for every transaction that you will make with your banks or local services will be under this type of jurisdiction, the same thing happens in my country there's a tax for transfers and cash outs.

Gelap

newbie

Activity: 228

Merit: 0

in my country crypto currency works as a capital asset. because in my country cripto currency has not been done for transactions in daily life.
perhaps in other countries this has been legalized and can be used for transactions. but In my country crypto money can not be made for the transaction. So in my country crypto money is only for capital assets / to invest instead of currency.

Yzhel

full member

Activity: 325

Merit: 100

At some people it is considered currencybsince they can remit money thru this they can pay bills by using this one. Although it is not yet legal tender but it can also function what a regular currency does?

Hirameki

member

Activity: 176

Merit: 10

It kinda works like both a capital asset and a currency Well when you take a look at it. Bitcoin and other crypto currencies was created as a currency and are still somewhat used as one, but it's at most an asset, cause you gain profit from it. So its more like a currency but also treated as an asset too.

fiulpro

hero member

Activity: 1890

Merit: 831

Cryptocurrency, rather bitcoins behave as a stock or share on the ground level. This is so because you can hold on to them, you can sell them, you can make profit out of them or simply dump them. These are things associated with assets. Now for bitcoin, it can aswell be used as a mode of transaction because of it being a digital currency. Hence it behaves as a currency also.

Now, stocks can be held but cannot be used as a mode of transactions, and while money can be a tool of transaction but diesnt neccesarily provide any great returns over a period of time, that is mot the case with bitcoins. It can be used as a currency aswell as an asset. Now since we use it as both means, it shouldnt be a surprise to why the banks treat it as both asset and currency.

BarbusseH

newbie

Activity: 193

Merit: 0

Everything depends on the legislation of your country. The central bank issues a directive and all banks are obliged to fulfill it. If they do not do this, they will be revoked a license.

Tyrantt

hero member

Activity: 1022

Merit: 564

Need some spare btc for a new PC

Well when you look at it... Bitcoin was created as a currency and is still somewhat used as one, but it's at most an asset, a commodity. Vast majority is trying to get as much btc as they can and hold it until it's value rises and that doesn't sound like a currency to me.

So bitcoin's in a weird situation. It's treated as currency but used as an asset.

qumeijia

jr. member

Activity: 166

Merit: 1

In my opinion, cryptocurrency can be both capital asset and currency. The users of digital currency or cryptocurrency may use it for payment, purchasing or other transactions. In other hands, it can be a tool to invest future profit. It is the advantages of cryptocurrency than other currencies.

jinxing

member

Activity: 276

Merit: 11

Crypto money is a virtual money or money that has no physical (unreal) in my country crypto money is a capital asset or can be used to invest. Crypto money can not be used for day-to-day transactions. Maybe in other countries such as japan, crypto money can be used to transact a small thing. In my country crypto money can not be like that. So crypto money is for capital assets only and not currency.

CryptoJoel

newbie

Activity: 102

Merit: 0

I'll definitely be a long term holder. I bought into the majority of my positions back in late September 2017 and don't plan to sell anything back to fiat until 2019 at the earliest. I have a USD target goal and when I reach that goal I will take about 50% of my profits and leave the rest to continue to grow.

Hirameki

member

Activity: 176

Merit: 10

For me, crypto currencies is both a capital asset and a currency, first thing is, you gain more in it, you gain more than what you invest into it, second, a currency because you have an option to trade it in the market, it has a value equivalent to our currency. So yeah its both of a capital asset and a currency. Just look at bitcoin, its a crypto, you invest on it you gain profit from it and then when you trade to our currency you gain more of it.

Nhebu

member

Activity: 616

Merit: 10

When we talk about the meaning of cryptocurrency, it defines as currency performed by cryptography. It uses as the medium of exchange or a payment of individuals (peer to peer network). But as the days passed by, it becomes as the storage of asset because tax is invulnerable at cryptocurrency. Most of the time, people specially the whales make cryptocurrency as their capital asset in which they are gaining profits in holding and selling of their own coins.

corall

newbie

Activity: 42

Merit: 0

To my mind the crypto currencies have both features - as capital asset and currency exchange. For IRS it is more profitable to consider them as a capital asset. If I were you, I would assure that your bank obeys legal rules

CHENIEN

member

Activity: 616

Merit: 11

Decentralized Ascending Auctions on Blockchain

Every transactions on such different kinds of cryptocurrencies are actually payable and it is not free from any charges, when you enter the path of business, it is also involves future profit. In cryptocurrencies, at first that you are trying to invest a capital, you must pay a small amount equivalent to the transaction your being made, and if you are a wise investor, I am sure that your future income will be multiple and it will overcome all your charges and payments. Just think positive and someday you will become a rule model, and one of those people became a millionaire because of crypto business.

CryptoJoel

newbie

Activity: 102

Merit: 0

I’m not well versed in the legal aspects of how governments decide what a cryptocurrency is and how they can profit from it, but recently I had a 32 minute conversation with my bank to remove the cash advance fee from my credit card for purchasing on coinbase. The IRS is taxing crypto holders capital gains tax because they deem cryptocurrencies to be a capital asset. Yet, my bank is charging crypto purchases as a cash advance (like pulling cash from your credit card at an ATM). So my question is, how can cryptocurrencies be treated as a capital asset AND a currency? Shouldn’t they only be able to screw us over for one way or the other, not both? If anyone can shed light on this, I’d be grateful. BTW, I eventually got them to remove the charge, this time...

Topic: Crypto”currencies” - capital asset or currency? (Read 173 times)