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Whether or not it's legal tender, or fiat, or "greenbacks" has nothing to do with whether it's currency for the purpose of taxation, which is the sole object of
by woodruffw 4y ago
Whether or not it's legal tender, or fiat, or "greenbacks" has nothing to do with whether it's currency for the purpose of taxation, which is the sole object of interest in this conversation.
The IRS considers the funds you have on deposit with a bank (in the form of Commercial Bank Money) to be currency for the purpose of taxation. They also consider the funds your have on "deposit" (in the form of Nonbank Money) with non-bank financial services to be currency for the purpose of taxation.
Finally, they consider your digital assets, defined above, to be property for the purpose of taxation.
Edit: to be maximally precise, digital assets are considered non-currency property.
- EGreg 4y agoWhether it's currency or non-currency property, the question is whether you received digital assets. If you received a digital balance in a bank account, you've received digital assets. They are not issued by a central bank nor are they fiat. So by your definition you gave, they are in fact digital assets, and you have to check the checkmark! That's my point. You can try to argue that digital bank balances in a database are not digital assets, but I wouldn't risk it.