Quote from: oblomov on December 31, 2016, 05:19:05 PM

Quote from: Jemzx00 on February 11, 2016, 03:40:17 PM

Since bitcoin is an internet currency that can be turn into a actual money. And Bitcoin too is known on Government but still government can't observe bitcoin that good. So I'm thinking if Bitcoin has tax??

Edit:
Now I know that bitcoin doesn't have tax but Transaction does..
Where do these Tax go?Government? And what kind of tax is it??

I am not a CPA, so this is a non-professional opinion. You should act on advice from a tax professional.

I am an advocate/activist for small government. Although not an anarchocapitalist, i am sympathetic to the anarchocapitalist perspective, and have many acquaintances who describe themselves as such.

That said, bitcoin transactions are definitely taxable in the US.

Based on Federal court rulings, BTC does not qualify as "money", but rather as an item of value.

It does not qualify as a "currency" in the way that most Americans trade FX (Secs. 1256 or 988 contracts or straddles), at least not yet. But there will probably be BTC futures trading on the CME by the end of Q1 2017.

Holding BTC and then making a transaction triggers a capital gain. To be conservative, you should use first-in-first-out (FIFO) accounting.

It may not seem right or fair, but the tax liability exists whether or not you pay it.

I would prefer to pay taxes as the liability accrues rather than having to pay fines later, or be accused of willful evasion of taxes.

so you're saying that bitcoin is a commodity much like gold, oil, and copper... i've always thought of bitcoin as a currency and so i've voiced opinions that taxes should not be imposed on it but on services and goods that accepted it as payment. your perspective though has helped me gain more insight about bitcoin. i have much to learn.