Community post
Cryptocurrency tax question
For United States citizens, according to the IRS, bitcoin and other cryptocurrencies are to be taxed as property and sales and purchases are to be treated as capital gains.
Does anybody know whether there is any legal basis for the argument that bitcoin (eth, steem, etc) is not located anywhere, therefore it is neither located in the US nor in a foreign country. If there are only laws which deal with transactions in the US and in foreign countries then there would be no basis to tax any cryptocurrency. But, I'm not aware of whether that is the case.
What do you think? Could this work or are there laws which govern things which don't exist in a particular location?
Replies (9)
Good question. But do you really think cryptocurrencies would be allowed to survive if there was no tax?
I am not against paying tax, only the amount.
Well, I agree that they would certainly try to change that eventually if they found too many people using that loophole. But cryptocurrencies are still new enough and not so well understood that there may be something in the language which would allow people to bypass it for now.
No currency will go untaxed .. If u r a citizen of some country and we all are.. Just cant get out of it lol
You friendly local kakistocracy will find some way to tax everything of value in your life ,
I did some reading quickly, but I believe that the argument that you propose using is the same argument that some places are trying to use to criminalise Cryptocurrency. Sadly, I do not think so..
But it is not currency, it is property according to law :p
Nice use of kakistocracy btw.
That's the way I look at it. The government wouldn't allow it to go on if they didn't have a solid grounds on which to tax it.
Ahhh thats why i added the tax anything of value part lol
I could be wrong, but the way I see it, the U.S. government can't tax you until you trade for U.S. dollars, and even then, you have to report it, unless your watched or have large sums of money your trading, I wouldn't worry bout it. It's just like the lottery, oh I won 100 bucks..your suppose to report that on your taxes...or if you sell something off craigslist, same..but oops forgot. Nice post! followed! check me out here:
https://steemit.com/filmmaker/@larutanton/starman-episode-001-commentary-by-larutanton
Great question ! IF there is'nt a law, they'll create one for sure, it will be interesting to see how they keep up with the ever changing and increasing crypto world. Any thing that is monetized can't be taxed, that's why PM's are not monetized. So capital gains would be calculated from sale, I know in Canada, capital gains are The last 50 % of your gains are taxed at your current rate of income tax. So if your taxed at 40 % of your income, 1000 dollars of gains, you would owe $ 200 in taxes. Better to hold on to your crypto and wait for after the reset , God willing we all survive and hopefully PM's, cryptos are untaxed or at least more reasonably taxed. I've resteemed as well, good question !