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How do you distinguish between someone buying something with Bitcoin and someone "trading" it? I only buy things with Bitcoin, I'm not doing currency trading (o
by eeeeeeeeeeeee 10y ago
How do you distinguish between someone buying something with Bitcoin and someone "trading" it? I only buy things with Bitcoin, I'm not doing currency trading (or at least, that was not my intention!).
It seems like they could have isolated this request down to heavy buy/sell activity where it doesn't look like people are simply buying things. I'm fine with them going after people evading taxes, but this seems like a wide net to cast.
- pc86 10y agoI don't do anything with BTC, is there any visible difference between speculating and purchasing a product when looking at the block chain and/or the user's account? And I'm not sure how the IRS views this, but if you buy 1 BTC for $750, then its value increases to to $1000 for 1 BTC, and you buy $1000 worth of merchandise, isn't that taxable appreciation on the order of $250, because you're getting $1000 worth of goods for $750? I agree this is a wide net to cast and I hope this is appealed and overturned, but I just don't know from a technical or tax perspective if they can cast the net any narrower.