IRS thinks Bitcoin is property, should be taxed

The 15th of April is the deadline for people to file their taxes in the US. If you have been using Bitcoin, what does this mean for you? Should you file Bitcoin as currency, capital gains, or can it be taxed at all? All good questions in need of answers.

bitcGovernments have been working hard to figure out their stance on the issue. Well, while many see bitcoin as currency, the Internal Revenue Service has announced that Bitcoin is considered property and will be taxed in the same manner.
As part of the IRS’ Q&A, they state that “For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.” Until this bit of news, there has been no official policy. Now we know where they stand.

Obviously this only applies to the US since other countries around the world may find different solutions to this new currency and have different rules. Seems strange to tax another form of currency, but I guess this is their way of protecting the dollar or something.

Source Ubergizmo

Filed Under: Technology News