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You still have to pay taxes on currency transactions that generate a profit, so I don't understand why this would be a tax boon. If I buy a million dollars wor
by tsotha 11y ago
You still have to pay taxes on currency transactions that generate a profit, so I don't understand why this would be a tax boon. If I buy a million dollars worth of yen and sell it for two million, the taxman will be around.
- josu 11y agoI'm guessing he is referring to sales tax or VAT, which currencies are exempt from.
- icebraining 11y agoAccording to this[1] Reddit post by a supposed tax attorney: Note: There is a code section that might provide some relief here, but only if bitcoins are categorized as a foreign currency. Under this code section, the use of bitcoin to buy goods and services would be tax free as long as the transaction was personal (i.e. not for business or investment) and did not generate more than $200 of gain. Unfortunately, the IRS ruled in Notice 2014-21 that bitcoin is not a currency for tax purposes. So, this code section is inapplicable unless the IRS changes its position sometime in the future. [1] https://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_attorney_here_are_my_answers_to_the/ https://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_...