[2019-07-06] New Bitcoin Tax Rules To Boost Crypto Market Growth

[Jgilpulg]

The U.S. is lagging behind in the global crypto industry race, as regulatory burdens and the lack of legal clarity are stifling innovation.

https://bitcoinist.com/new-bitcoin-tax-rules-to-boost-crypto-market-growth/

[BitHodler]

Spending Bitcoin in the US is a pain in the ass because whatever it is that you spend your coins at, it is considered a taxable event. If they make it so that this is no longer the case, then it might actually boost Bitcoin's currency aspect.

Instead of cashing out profits by selling them for fiat and pay tax, people might choose to spend their coins, which might also boost LN adoption and liquidity in the long run. I'm definitely looking forward to what comes out of this.

[Kakmakr]

If the IRS change the status of Bitcoin to being a "legal tender" too, apart from being a tradeable asset, then expect a massive boost in the price. A lot of merchants have been reluctant to accept Bitcoin as a legal tender, because the guidelines from the regulators were vague.     So, the moment when the IRS declare Bitcoin as a legal tender, it would have a massive increase on US merchant adoption. 

It will also mean a massive boost for the US tax chest, because they can then charge VAT on all purchases done with Bitcoin without having all these grey areas and also having to work through 3rd party payment processors.   

[Carlton Banks]

whatever it is that you spend your coins at, it is considered a taxable event.

A lot of merchants have been reluctant to accept Bitcoin as a legal tender, because the guidelines from the regulators were vague.

"the coward dies a thousand deaths. the brave die but one"

[squatter]

Spending Bitcoin in the US is a pain in the ass because whatever it is that you spend your coins at, it is considered a taxable event. If they make it so that this is no longer the case, then it might actually boost Bitcoin's currency aspect.

That won't happen. Their primary concern is squeezing tax revenue out of us, deterring tax avoidance. They aren't interested in making things less burdensome.

At best, there might be a small annual exemption for gains realized this way, like in this proposed bill, which caps the exemption at $600. It'll take new legislation to carve out an exemption like that too. I don't think the IRS can just do it.

If the IRS change the status of Bitcoin to being a "legal tender" too, apart from being a tradeable asset, then expect a massive boost in the price.

Legal tender means it must be accepted for payment of debt or taxes. Why would they do that?

[joelsamuya]

I am happy to know that there are some lawmakers in Congress sympathetic to the bitcoin movement and I am sure they have an open mind for the whole cryptocurrency industry. These people are the reasons why I am positive that sooner or later, USA will be tapping into the full potential of this industry and be the leading country along with Japan, North Korea, Germany and other smaller countries making sure that the future of this industry is secured and benefiting as many people as possible.

The coming changes from the IRS should be taken as just the start for waves of regulatory procedures positive for bitcoin and the whole cryptocurrency industry. The industry should be working with these lawmakers in introducing any possible bill in Congress laying down the foundation for the industry and making sure that there is no more vague interpretation and implementation of laws on this regard.

We are all waiting for the change in the treatment of bitcoin into a real currency the same level as that of the US dollar...soon! This is not just good for this industry but the whole economy as well.

[1Referee]

Spending Bitcoin in the US is a pain in the ass because whatever it is that you spend your coins at, it is considered a taxable event.

Is it really a pain in the ass? I know enough people who live there but don't give a shit about this silly tax law where every coffee payment will have to be registered. It's just not viable. I doubt regulators even care much because every minute they put into chasing after people not paying small bits and pieces is an utter waste of time and resources.

If you register every micro payment just because it's a taxable event you're handing them over free money. First they collect your taxes, then collect the taxes of the payment processor handling your payment. That's the most retarded thing I have seen.

[roosbit]

The article says otherwise because should cryptocurrencies be categorized as securities then this catchup the US is trying to archive will not be possible and they will keep falling back.

My only worry is hoping not to see our regulators rush this process and get it wrong, maybe its better to have it considered as both a virtual currency and an asset with conditions attached to its classification.

[squatter]

Spending Bitcoin in the US is a pain in the ass because whatever it is that you spend your coins at, it is considered a taxable event.

Is it really a pain in the ass? I know enough people who live there but don't give a shit about this silly tax law where every coffee payment will have to be registered. It's just not viable. I doubt regulators even care much because every minute they put into chasing after people not paying small bits and pieces is an utter waste of time and resources.

It's a pain in the ass for anyone who actually complies. I'm sure hardly anyone does.

When looking at the FATF guidelines, it looks like Bitpay and similar services will be considered VASPs. So there's that.

They are obviously more concerned about bigger fish and especially about getting a handle on people avoiding taxes through exchanges, though. Those are low hanging fruit with much bigger tax cases.

[timerland]

The U.S. is lagging behind in the global crypto industry race, as regulatory burdens and the lack of legal clarity are stifling innovation.

https://bitcoinist.com/new-bitcoin-tax-rules-to-boost-crypto-market-growth/

At any point in time, a clarification in the tax code, and a loosening of regulation in an area which is rapidly growing is beneficial to both the participants within that market, as well as the government for revenue's sake, imo.

A lack of clarity as well as draconian restrictions to access simply means less people are going to go with the legally recognized path, and more will fail to report their taxes, both intentionally and unintentionally.

And that's not evening mentioning the stunting effect that this has on bitcoin businesses, within the U.S. in particular as we're seeing a clear trend that they are moving away from domestic operations, but rather going to countries where regulations are more favorable. I personally don't think that long term, this is a desirable outcome for anyone.

[BitHodler]

"the coward dies a thousand deaths. the brave die but one"

So? You blame people for following their local taxation policies? You know that most of what people own in Bitcoin and spend is withdrawn from a centralized exchange?

I don't blame people for being vigilant about how they spend their coins and what taxation policies they are subject to. It's isn't worth it to be pointed at your not declared spendings and then be fined for it.

And then we have the merchant side of it, do you blame them too for following the guidelines? The consequences for them to not follow the guidelines are much worse than for individuals not following them.

I get your point but you're going a bit too fast here assuming everyone is here for the same reason as you are.

[Carlton Banks]

so why are you here then?