Bitcoin is Not a Currency | naked capitalism
Quote:
Japan has just decided that Bitcoin is not a currency, which subjects it to sales and income taxes. This is consistent with the view of the Canadian Revenue Service, which has found Bitcoin to be property and not a legal currency, and the United Kingdom, which leaning towards treating Bitcoin as a voucher and subject to VAT.
[....]
Bitcoin is property. When property is exchanged for other property, that is a taxable event.
[....]
So not only is a venue that takes Bitcoin taxable on the revenues (which should be no surprise), the owner of the Bitcoin that traded them in is also taxable if he has a gain on the Bitcoin relative to when he acquired them. How that gain will be taxed depends on whether he is considered to be an investor, a dealer, or a trader.
Oh, and what about Bitcoin miners? Their income from mining is also taxable on the dollar value of the Bitcoins received.
|
Despite all the hype, bitcoin is being treated as a value store, which is different than a currency, Even worse, the IRS will find tracking bitcoin sales easier.