IRS: Bitcoin is not a currency, but a property, please pay taxes

The IRS (US Internal Revenue Service) reported that Bitcoin should be treated as a property, not a currency, as a tax base. According to tax expert Tyson Cross, this will create a significant burden on Bitcoin users, because Now for each transaction will have to submit the appropriate document.

" Users will have to track their operations and determine the amount of their taxable income each time, " the expert said during an electronic correspondence with the editors of 8BANKS . “This will create a lot of inconvenience. There are exceptions to personal transactions in the rules on taxation of foreign currency, it would be logical to apply these exceptions to Bitcoin. ”



But Cross adds that such IRS recommendations are unlikely to exist forever. Now the Ministry of Finance should begin to develop rules for adapting to digital currencies. “It usually begins with public comments, which are included in the relevant notice. Tax experts can then identify the issues and suggest possible solutions. Thus, from today until the publication of new regulations, there is a great opportunity to form a tax regime for Bitcoin, ”wrote Cross.



The IRS believes that everyone who owns a cryptocurrency will have to determine its value at the time of receipt, in order to determine a profit / loss at the time of submission of documents, and submit documents with relevant results.

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If you were mining Bitcoin, the equivalent of the cryptocurrency market value at the production date is gross income.



If you pay someone in Bitcoin, you must file the appropriate document.



Detailed question / answer session of Business Insider with the IRS here . Important: this applies only to US residents. only they are subject to the rules and interpretations of the IRS. On the one hand, the IRS has not yet published any regulatory documents regarding Bitcoin, this is only its interpretation of Bitcoin in the context of taxation; on the other hand, no one has repealed property tax legislation. But despite this, the Bitcoin market will be in a fever. in the USA, the words of such structures are taken more than seriously, the last word most often remains for them.