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I think I saw previously that the IRS classifies Bitcoins the same way? If digital currency becomes ubiquitous, I have a feeling our government is going to regr
by bsbechtel 10y ago
I think I saw previously that the IRS classifies Bitcoins the same way? If digital currency becomes ubiquitous, I have a feeling our government is going to regret setting these precedents.
- criddell 10y agoDo you know if the classification depends on whether or not Bitcoin is legal tender?
- andrewaylett 10y agoIt's not, but then neither is the Scottish £10 note in my pocket -- see my other comment in this thread: https://news.ycombinator.com/item?id=12165554 https://news.ycombinator.com/item?id=12165554
- jrockway 10y agoCan't the legislature just change these things? There's nothing in the Constitution about Bitcoin.
- bsbechtel 10y agoYes, but it becomes much harder to do once precedent is set. Interest groups spring up around the current status quo, and it takes a lot of momentum to convince the general population that a change is necessary. If EVERYONE is using Bitcoin and their effective tax rate is 15%, I don't think changing the tax rate to align with income tax rates will go over very well.
- homero 10y agoyou would pay income taxes and reset the basis
- deleted 10y ago[deleted]
- morgante 10y agoWhy do you think that? Just because they treat Bitcoin as a commodity does not mean you can somehow avoid paying taxes on it. Compensation does not have to come in the form of cash to count as income (just look at stock allocations).