“The Internal Revenue Service’s decision to treat Bitcoin as property will make tax consequences part of every transaction involving the virtual currency. So much so that Bitcoin users and analysts say the IRS guidance announced yesterday complicates people’s ability to use it as a currency. The IRS, faced with a choice of treating Bitcoins like foreign currency or property, chose property. Exchanging Bitcoins for goods, services or dollars will generate taxable income or losses, depending on what the Bitcoin investor paid. Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross income for the coffee shop.”
Related posts:
NSA mass phone surveillance revealed by Edward Snowden ruled illegal
B.C. school bans kindergarteners from touching each other
Canada’s first public pot company has shipment seized by RCMP
America's Fastest-Growing Cities Since The Recession
‘Sovereign citizen’ movement, 30,000 strong, worrying Canadian officials
American Farm Bureau calls for end to federal ban on hemp
Video shows California cop punching woman on L.A. freeway
Fidel Castro denies Cuba refused Edward Snowden asylum
This drone can steal what's on your phone
Researchers Retract Report That Linked Bitcoin Creator and Silk Road
U.S. Banks Bigger Than GDP as Accounting Rift Masks Risk
American weapons blamed for health problems at hospital in Fallujah
EU warns Obama of ‘grave consequences’ facing Europeans from NSA intel scandal
Ninth Circuit Rules 85-Year-Old Tax Protester Should Stay In Jail
U.S. to seize New York skyscraper it claims is secretly owned by Iran