IRS Rules Bitcoin Is Property, Not Currency
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IRS Rules Bitcoin Is Property, Not Currency
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Re: IRS Rules Bitcoin Is Property, Not Currency
#2This can only be good for Bitcoin. If you can pay taxes on it; it increases its legitimacy.
Bitcoin has never really been currency anyway; it's more of a pseudo-futures contract than anything else. IMO an essential criteria for a currency is that it is backed by an economy and a government with the power to ensure the security of that currency.
Re: IRS Rules Bitcoin Is Property, Not Currency
#3This can only be good for Bitcoin. If you can pay taxes on it; it increases its legitimacy. Bitcoin has never really been currency anyway; it's more of a pseudo-futures contract than anything else. IMO an essential criteria for a currency is that it is backed by an economy and a government with the power to ensure the security of that currency.
> This can only be good for Bitcoin. If you can pay taxes on it; it increases its legitimacy.
Prostitutes are expected to pay tax on money they earn. Drug dealers are expected to pay tax on money they earn.
Paying tax is nothing to do with legitimacy.
Re: IRS Rules Bitcoin Is Property, Not Currency
#4This can only be good for Bitcoin. If you can pay taxes on it; it increases its legitimacy. Bitcoin has never really been currency anyway; it's more of a pseudo-futures contract than anything else. IMO an essential criteria for a currency is that it is backed by an economy and a government with the power to ensure the security of that currency.
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Re: IRS Rules Bitcoin Is Property, Not Currency
#5This can only be good for Bitcoin. If you can pay taxes on it; it increases its legitimacy. Bitcoin has never really been currency anyway; it's more of a pseudo-futures contract than anything else. IMO an essential criteria for a currency is that it is backed by an economy and a government with the power to ensure the security of that currency.
> This can only be good for Bitcoin. If you can pay taxes on it; it increases its legitimacy. Prostitutes are expected to pay tax on money they earn. Drug dealers are expected to pay tax on money they earn. Paying tax is nothing to do with legitimacy.
Isn't that more a problem with legislation not with the basic principle?
I.e. Drugs and prostitution should not be illegal.
Re: IRS Rules Bitcoin Is Property, Not Currency
#6Of course for the many people who will do simple point-to-point purchases with bitcoin, these rules won't really apply, since those transactions and gains aren't detectable unless they're declared.
On the other hand, with retailers and 3rd-party apps adding Bitcoin payment layers, an increasing amount of bitcoin purchases will be on record and associated with an address or bank account in some way or another. I think it's good - we get both worlds and bitcoin grows.
I think they also did a good job of doing this without having it come off stiff or overly specific to Bitcoin. Doubtless things will be adjusted over the next couple years, but this is a big step in the right direction. (I also anticipate a couple small steps in the wrong one, but that's to be expected)
Re: IRS Rules Bitcoin Is Property, Not Currency
#7Earlier quoted context omitted.
> This can only be good for Bitcoin. If you can pay taxes on it; it increases its legitimacy. Prostitutes are expected to pay tax on money they earn. Drug dealers are expected to pay tax on money they earn. Paying tax is nothing to do with legitimacy.
Isn't that more a problem with legislation not with the basic principle? I.e. Drugs and prostitution should not be illegal.
It's not limited to those things, though. For example, thieves need to pay taxes on the proceeds from selling what they steal.
Re: IRS Rules Bitcoin Is Property, Not Currency
#8Earlier quoted context omitted.
Isn't that more a problem with legislation not with the basic principle? I.e. Drugs and prostitution should not be illegal.
It's not limited to those things, though. For example, thieves need to pay taxes on the proceeds from selling what they steal.
And they can subtract their investments (e.g. handguns, crowbars ) from income tax.
Re: IRS Rules Bitcoin Is Property, Not Currency
#9So that means if I hold it over 1 year I can treat any gains as LONG TERM capital gains, right?
Re: IRS Rules Bitcoin Is Property, Not Currency
#10So that means if I hold it over 1 year I can treat any gains as LONG TERM capital gains, right?
Yes