If you have some of your money in another currency and buy something with it, I don't think capital gains would be involved. This is a question for a lawyer but I can't imagine countries, banks, etc. who have their money in other currencies, must pay capital gains on things for purchases made.
I was under the understanding that taxes are paid when going from currency to currency (depending on country). Here in Germany you have no capital gains on BTC's held for over one year.
IAS
I was under the understanding that taxes are paid when going from currency to currency (depending on country). Here in Germany you have no capital gains on BTC's held for over one year.
IAS
buying a house, especially if its a second house... you'll get tax... you can try to pay with bitcoin at never declare it... idk i wouldn't...
You are looking at is as if BTC was an investment. I'm saying you are just holding another currency.
If you go to another country and exchange thousands in that currency and then come home and that currency's value increases, do you pay a capital gains tax on it? I can't imagine that happening.
Now, if you see BTC as a stock, that might be another matter. But, it is a currency.
I don't doubt there can be legal implications, I'm just saying I think it is way too early to speak with any certainty here.
IAS
In the US it is called foreign currency gains and is taxable (alternatively, barter gains). If bitcoin is seen as a functional currency, I read it as giving us a personal use exemption on gains less than $200 -- any transaction with gains higher than that is supposed to be reported. If bitcoin isn't seen as a currency, no exemption. Too lazy to look up and cite but pretty sure this is the case.
Thanks for that! Hopefully this helps others.
IAS
