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It seems this is following the collectibles argument. Bitcoin “isn’t” a currency but buying or selling the collectible of Bitcoin is a taxable transaction.
by inlined 7y ago
It seems this is following the collectibles argument. Bitcoin “isn’t” a currency but buying or selling the collectible of Bitcoin is a taxable transaction.
- icebraining 7y agoThat's not my reading, nor of the tax lawyer that read it: https://www.jornaldenegocios.pt/opiniao/detalhe/as-mais-valias-das-criptomoedas https://www.jornaldenegocios.pt/opiniao/detalhe/as-mais-vali... (in Portuguese). He writes: "Thus, in the understanding advocated by the [IRS], the profits obtained from the sale of cryptocurrencies are not taxable in the IRS under the Portuguese tax system, unless it is a taxpayer's professional or business activity, in which case it will be taxed as income falling within IRS category B."
- jorge-d 7y agoWell, you're right in the case of non-recurring crypto trading. Now, in the paragraph B, it is said: Now the exercise of the activity is determined by its recurrence and the goal of the activity to generate profit. If there is a business or professional activity then the person would have to pay the IRS and would be required to comply with the reporting obligations, whenever you perform a sell or provide a service. To me, doing some crypto-trading would easily fall in this definition and the IRS might come later saying "hey, you did multiple transactions over the course of X months, this looks like a professional activity"