Some have described he IRS designation of BitCoin as intangible - TopicsExpress



          

Some have described he IRS designation of BitCoin as intangible property as a nail in its coffin. But doesnt that designation open doors for favorable tax treatment just as much? If Bitcoin were treated as a foreign currency, ordinary -- not capital gains -- tax rates would apply. Losses would be easier to deduct, however. Actually, it wouldnt be hard to create an algorithm within a BitCoin wallet to attend to that issue. That--and the capital gains rate is one of the more favorable ones, which allows for some interesting tax tricks as far as taking receivables in BitCoin, keeping them within a business entity, or even accepting an individual LLC or CloseCorp payout in BitCoin. bloomberg/news/2014-03-25/bitcoin-is-property-not-currency-in-tax-system-irs-says.html
Posted on: Mon, 07 Apr 2014 21:49:11 +0000

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