Topic: IRS made a mistake - page 3. (Read 2899 times)
If Bitcoin wasn't something to be taken seriously, then the IRS wouldn't bother.
Because Bitcoin is so young, it could still go to zero. Many mainstream economists argue just this. And many opponents are trying to make this a reality.
It is still a speculative investment.
If this is true then the following shouldn't be subject to capital gains taxes until they are either spent or sold:
1. Pay in Bitcoin
2. Mining rewards
Edit:
The premise of this post is actually incorrect. Risk alone isn't necessarily reason to avoid ordinary income tax.
A better way to make this argument is that payment in stock options (also property)
can be structured to avoid ordinary income tax while Bitcoin pay and mining cannot
The IRS seems too want to have it both ways here. Tax it as money when paid (unlike other property like stocks options as I've demonstrated) AND tax it as capital gains when spent or sold
http://finance.yahoo.com/news/taxing-stock-options-other-equity-070055008.html
It is still a speculative investment.
If this is true then the following shouldn't be subject to capital gains taxes until they are either spent or sold:
1. Pay in Bitcoin
2. Mining rewards
Edit:
The premise of this post is actually incorrect. Risk alone isn't necessarily reason to avoid ordinary income tax.
A better way to make this argument is that payment in stock options (also property)
can be structured to avoid ordinary income tax while Bitcoin pay and mining cannot
The IRS seems too want to have it both ways here. Tax it as money when paid (unlike other property like stocks options as I've demonstrated) AND tax it as capital gains when spent or sold
http://finance.yahoo.com/news/taxing-stock-options-other-equity-070055008.html
Jump to: