IRS says bitcoin is property rather than currency

Posted by richrobinson 12 years, 1 month ago to The Gulch: General
11 comments | Share | Best of... | Flag

This is a breaking news headline on CNBC. No story is available yet. Not sure what the implications are.

All Comments

  • Posted by CircuitGuy 12 years, 1 month ago in reply to this comment.
    I never know if people I'm dealing with are paying all the taxes. I use cash a lot, so maybe they hide it.
    No one pays me in cash, but people pay my wife in cash all the time. We report every bit of it. We put our nanny/babysitters on payroll when required regardless of the amount of payment. Not everyone who accepts cash is cheating.
    Reply | Permalink  
  • Posted by CircuitGuy 12 years, 1 month ago
    Is seems like they should treat it just like foreign currency.
    Reply | Permalink  
  • Posted by richrobinson 12 years, 1 month ago in reply to this comment.
    Exactly Robbie. That is why I can't believe all the lefties are so happy about this. Shouldn't they be screaming that they aren't paying workman's comp insurance, business privelge tax and social security tax Medicaid taxes....
    Reply | Permalink  
  • Posted by $ jbrenner 12 years, 1 month ago
    I can't say I'm surprised about this. Cue the Imperial March from Star Wars (Darth Vader / stormtroopers) music. I was just getting ready to buy some Bitcoin off of the recent decline. Now ... well ....
    Reply | Permalink  
  • Comment hidden due to member score or comment score too low. View Comment
  • Posted by Robbie53024 12 years, 1 month ago in reply to this comment.
    That's not even a barter system - and I bet the sellers aren't reporting the income made.
    Reply | Permalink  
  • Comment hidden due to member score or comment score too low. View Comment
  • Posted by Robbie53024 12 years, 1 month ago
    Appreciation of property is taxable. Generally, currency fluctuation is not directly taxable - unless it is held specifically in an investment vehicle. Thus, if it were a currency merely held in an account, the appreciation would be non-taxable. As appreciable property (and depreciable as well, and given the recent loss, this might ultimately come back and bite the IRS in the butt), any increase in value is taxable in the year the appreciation is realized.
    Reply | Permalink  
  • Posted by richrobinson 12 years, 1 month ago in reply to this comment.
    No they don't. I am often amazed at how many left wing people flock to "farmers markets". It is an open black market. We have one in the town I work in. They set up on property owned by a church so there are no property taxes being paid. Think of all the taxes, insurance and regulations they get to avoid. Then the left wing loons that put that tax structure in place flock to these "farmers markets" because of the great prices.
    Reply | Permalink  
  • Posted by khalling 12 years, 1 month ago
    It 's what was expected. You have to value gains and losses as a stock. The problem is you don 't take your stock certificate to the coffee shop to buy a cup of coffee. The ultimate goal was to use the bitcoin to buy stuff. If you buy a 2 dollar cup of coffee with a fraction of bitcoin valued at a dollar when you invested in it you have to report the difference as profit. The govt wants to discourage alternative currency. Likely it will now foster a black market much like most barter is.you are supposed to report barter transactions. Do you think many do?
    Reply | Permalink  

  • Comment hidden. Undo