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You may have been downvoted for a snarky tone, but this is the first time I've seen it mentioned here - bitcoin is taxed as a commodity in the US, each exchange
by flatline 6y ago
You may have been downvoted for a snarky tone, but this is the first time I've seen it mentioned here - bitcoin is taxed as a commodity in the US, each exchange is a capital gain or loss.
- Consultant32452 6y agoThis is the poison pill for BTC in my opinion. I have a very small amount of BTC and this is the primary reason I don't have a larger investment, don't make more of an attempt to use it as currency, etc. The central banks/governments aren't going to give up their power so easily. They may have low-key destroyed crypto by considering them commodities. The only way crypto can win* is if a plurality of people just choose not to follow the tax laws. It has to be enough people that it becomes unenforceable. win* in this case is defined as being a 1st order currency largely unencumbered by central banking/government authority.
- imtringued 6y ago>The only way crypto can win* is if a plurality of people just choose not to follow the tax laws. It has to be enough people that it becomes unenforceable. That's impossible if you spend your Bitcoin via Visa.
- rawtxapp 6y agoYou can just borrow against it to spend it. No tax whatsoever and you hold on to your asset.
- lxgr 6y agoHow do you eventually repay that loan (or at least pay interest)?
- lmm 6y agoGuessing: you can sync up once a year (or even once every 5 or 10 years) and pay taxes on that transaction at that day's price.
- imtringued 6y agoThat's ok if you are happy with shifting the tax date. I can definitively see how this decreases the accounting burden but not the tax burden.
- midasuni 6y agoIf you buy euros with dollars, keep them, then buy dollars back, is that lunged as capital gain/loss?