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> The IRS has offered guidance on bitcoin transactions since 2014 and considers the cryptocurrency to be property, not currency. As such, every purchase, sale,
by thisisit 9y ago
> The IRS has offered guidance on bitcoin transactions since 2014 and considers the cryptocurrency to be property, not currency. As such, every purchase, sale, trade, and mining effort is considered to be a taxable event.
Wait. So, cryptocurrencies are not taxed on capital gains? If it is considered property then do people need to calculate their base price, profit and then pay taxes?
- gascan 9y ago> cryptocurrencies are not taxed on capital gains? Stocks are also property, and they are certainly taxed on capital gains. > If it is considered property then do people need to calculate their base price, profit and then pay taxes? Yes.
- tathougies 9y agoA capital gain is a gain in capital made during the sale of property. Selling bitcoin for more than it was bought for and collecting the profit is the very definition of a capital gain.