Bitcoins are Property Not Money - US IRS

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Bitcoins are Property Not Money - US IRS
Digital currency to be declared as property for tax purposes...

Perhaps setting a precedent for the rest of the world's tax agencies, the United States' Internal Revenue Service has decided that, for the purposes of taxes, Bitcoin should be treated as property rather than an actual currency.

With a little over 80,000 Bitcoin transactions taking place every day, the virual currency isn't exactly what you'd call mainstream yet, but it is big enough for the IRS to take a look at it, and with Bitcoins to the value of around $8bn in circulation right now, it's possible that it could become a much more widespread currency in the future, or if not Bitcoin, then perhaps a successor.

Declaring virtual currency on your tax return probably isn't the kind of glamourous idea many had in mind when it comes to decentralized finances, but those who do decide to play by the rules at least have an idea of how they're supposed to treat Bitcoins (rather than being treated at the current market value, they're to be added to tax returns at the value they held on the date they were acquired by the users, which makes things potentially problematic for those who have acquired a reasonable enough stash over the last couple of years).

It seems like a bit of an unnecessary headache, but at least the IRS is taking it seriously enough to actually come up with some kind of ruling...



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