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Posted on 04/08/2014 3:30:57 PM PDT by Errant
US Congressman Steve Stockman of Texas is preparing to introduce a new bill, the ‘Virtual Currency Tax Reform Act’, which, if passed, would tax bitcoins as currency instead of property.
Currently, the US Internal Revenue Service (IRS) views bitcoin and other digital currencies as property. When someone sells their bitcoin or makes a purchase in bitcoin, they are subject to a 15% capital gains tax. Any wages paid out in digital currencies must also be reported to federal tax authorities.
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But, but , but it’s not real /s
If a feller was to buy and sell bitcoins on the market he wouldn’t be subject to sales tax each time he trades would he?
I believe as it stands now if you trade Bitcoin for fiat you are subject to capital gains tax.Short term < year, long term > year.
The bill was introduced to tax it like currency for transactions.
Sales tax would fall under your state law. And seeing where you are from, I’m not to hopeful you are exempt. I would check your laws and since you’ll most likely be trading online and with others outside your state, see if trading outside of your state is exempt.
California isn’t in the habit of exempting much. Greedy B@$7@rds. I could move to Oregon. No sales tax there.
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