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Does it though? If you actually use bitcoin like a currency to purchase goods then I doubt these laws would work the same.
by baby 6y ago
Does it though? If you actually use bitcoin like a currency to purchase goods then I doubt these laws would work the same.
- Thrymr 6y agoOh yes it does, according to the IRS: > Q16. Will I recognize a gain or loss if I exchange my virtual currency for other property? > A16. Yes. If you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss. For more information on capital gains and capital losses, see Publication 544, Sales and Other Dispositions of Assets. Source: https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions https://www.irs.gov/individuals/international-taxpayers/freq...
- chki 6y agoWhich makes sense, right? Otherwise I'll declare my stock and property to be currency and directly exchange it at the dealership for a new car, avoiding the capital gain tax.
- ineedasername 6y agoYep, same thing as investing in a foreign currency that increases relative to the USD. When you convert it into a purchase you are realizing a gain, which is taxed. Heck, even savings account interest is taxable.