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Here are the core principles behind Taler: https://taler.net/en/principles.html https://taler.net/en/principles.html Note: Taler is not a cryptocurrency. It's
by dbrgn 6y ago
Here are the core principles behind Taler: https://taler.net/en/principles.html https://taler.net/en/principles.html
Note: Taler is not a cryptocurrency. It's an electronic payment system.
- wrycoder 6y agoAnd the IRS should treat transactions like they do gift cards or pre-funded debit cards. While the IRS treats bitcoin transactions like security transactions - they are taxed on gain/loss of the bitcoins involved.
- nerdponx 6y agoThat's because Bitcoin taxed the same way as other forex, at least to my knowledge. If you buy goods with Bitcoin you should presumably pay sales tax, not capital gains tax.
- wrycoder 6y agoYou would pay both - sales tax is collected by the seller. The gain on the Bitcoin is the value of the transaction, less your basis for the Bitcoin involved. That gain can be long term or short term and is taxed accordingly.
- nerdponx 6y agoSo how does this work outside of cryptocurrency? Suppose I change a bunch of USD for EUR at an airport. Six months later, the Euro has appreciated significantly vs the US Dollar. I go on another trip, and buy some stuff with the Euros I changed several months ago. Do I technically owe capital gains tax?
- wrycoder 6y agoNot if you paid for the stuff in Euros. But if you changed the appreciated Euros back into dollars, you’d at least theoretically owe tax on a foreign exchange gain. For pocket money, no one is going to bother with it. But I’ve been in situations involving hundreds of thousands of dollars held for long periods in foreign currencies, where the tax consequences were real. There’s a line on the 1040 to account for foreign exchange gain/loss.