Ok this is something that hits us all but when it comes to cryptocurrency there is a allot of uncertainty about how taxes will be enforced. There has been some news about different U.S. dollar amounts such as $10,000 at which taxes will be enforced or a certain amount of bitcoins traded such as 1 bitcoin at which taxes will apply. The majority of the news is based around cashing out on exchanges such as coinbase.
Based on what you have learned what do you think is the most likely scenario when it comes to cryptocurrency taxes in the U.S.?
Or comment on when do you think this will be clarified by the governing bodies?
When it comes to crypto taxes, the treatment would likely be the same depending on which particular section its being categorized by the jurisdiction and the treatment would still remain the same. What you need to bother yourself about is what is our country saying it to be. If its regarded as property, then the provisions of the Capital Gains Tax Act becomes applicable, if its regarded as a form of trading income for those engaged in mining activities, then that would be treated under the provisions of both Company and Personal Income Tax laws. For those doing running exchange sites or centralized exchange sites, those could be taxable under the provisions of either Value Added Tax or Consumption Tax depending on how its being interpreted. So, it does not really the jurisdiction, its the law except a new law is enacted to deal with crypto currency.