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If "bitcoin is not money" then you are opening a can of worms that nobody wants opened. Especially if you treat it like personal property as the linked documen

by OldHand2018 5y ago

If "bitcoin is not money" then you are opening a can of worms that nobody wants opened. Especially if you treat it like personal property as the linked document prefers. Wash sale rules probably start to apply. You're going to need to charge sales tax and get a business license from your local city just to trade on Coinbase, etc. No thanks. Each dollar bill or Euro or Yuan, etc, has a serial number. That means you can lay claim to an exact bill, just like with Bitcoin. But we call money fungible because we don't actually care which dollar bill it is we are holding. They are all the same from a value standpoint.

DennisP 5y ago
The IRS already treats bitcoin as personal property.
- arcticbull 5y ago
  Indeed, I think the wash sale rule only applies to stock, options and securities. It's their commodity treatment that allows you to avoid wash sales. Commodities futures for instance do not trigger wash sales. [1] [1] http://www.bairdfinancialadvisor.com/brennanjandricgroup/mediahandler/media/875/Wash%20Sale%20Recap.pdf http://www.bairdfinancialadvisor.com/brennanjandricgroup/med...
- OldHand2018 5y ago
  Would you like the state of California to take that position? How many Bitcoin sales have you done so far this year? Do you have a seller's permit? > OCCASIONAL SALES—A sale by (and purchase from) a person who is not engaged in a business requiring a seller’s permit is exempt from sales and use taxes. These types of sales are “occasional” sales (some states have similar exemptions for “casual” sales). Generally, a person who makes three or more sales for substantial amounts in any period of 12 months is required to hold a seller’s permit. A person who makes a substantial number of sales for relatively small amounts is also required to hold a seller’s permit. (The 12 month test period can be the 12 months before the sale in question, the 12 months after the sale in question, or any other 12 month period in which the sale occurs.) A person holding two garage sales with no other sales in any 12 month period in which the garage sales are held are regarded as making exempt occasional sales. A business that is not required to hold a seller’s permit would be making an occasional sale when making a single sale of its assets upon termination of its business. Such persons should be aware that making two or three sales in anticipation of final liquidation will generally result in all the sales being subject to sales tax. https://www.cdtfa.ca.gov/formspubs/pub61.pdf https://www.cdtfa.ca.gov/formspubs/pub61.pdf
rtkwe 5y ago
> That means you can lay claim to an exact bill, just like with Bitcoin. Hmm? AFAIK there's no such thing as a particular bitcoin it's all just totals in the ledger that is the blockchain.

DennisP 5y ago

The IRS already treats bitcoin as personal property.

arcticbull 5y ago
Indeed, I think the wash sale rule only applies to stock, options and securities. It's their commodity treatment that allows you to avoid wash sales. Commodities futures for instance do not trigger wash sales. [1] [1] http://www.bairdfinancialadvisor.com/brennanjandricgroup/mediahandler/media/875/Wash%20Sale%20Recap.pdf http://www.bairdfinancialadvisor.com/brennanjandricgroup/med...
OldHand2018 5y ago
Would you like the state of California to take that position? How many Bitcoin sales have you done so far this year? Do you have a seller's permit? > OCCASIONAL SALES—A sale by (and purchase from) a person who is not engaged in a business requiring a seller’s permit is exempt from sales and use taxes. These types of sales are “occasional” sales (some states have similar exemptions for “casual” sales). Generally, a person who makes three or more sales for substantial amounts in any period of 12 months is required to hold a seller’s permit. A person who makes a substantial number of sales for relatively small amounts is also required to hold a seller’s permit. (The 12 month test period can be the 12 months before the sale in question, the 12 months after the sale in question, or any other 12 month period in which the sale occurs.) A person holding two garage sales with no other sales in any 12 month period in which the garage sales are held are regarded as making exempt occasional sales. A business that is not required to hold a seller’s permit would be making an occasional sale when making a single sale of its assets upon termination of its business. Such persons should be aware that making two or three sales in anticipation of final liquidation will generally result in all the sales being subject to sales tax. https://www.cdtfa.ca.gov/formspubs/pub61.pdf https://www.cdtfa.ca.gov/formspubs/pub61.pdf

rtkwe 5y ago

> That means you can lay claim to an exact bill, just like with Bitcoin. Hmm? AFAIK there's no such thing as a particular bitcoin it's all just totals in the ledger that is the blockchain.