Bitcoin is "NOT" Legal Tender According to IRS

[Crypto-t]

IRS won't consider Bitcoin a currency but will consider it a commodity so they can tax it!

The IRS are arguing that Bitcoin cannot be considered a currency because it does not have “legal tender status”. And who gives Bitcoin legal tender status? The governments/authorities do of course. And will the governments/authorities give Bitcoin legal tender status? Unlikely, because this will legitimize Bitcoin even more and help it spread. But, that does not matter to many millions of crypto-currency enthusiasts throughout the World.

So, why are governments recognizing Bitcoin if they don’t want it considered a currency? Three guesses? Tax, tax and more tax!

The Internet/Web has evolved faster than most people imagined and no-one controls it even though several authorities/governments have tried. Bitcoin is built upon the Internet/Web, and is a true example of Laissez-faire dynamics that will bring about a real freedom movement.

Source: http://blog.gbcoinfoundation.org/should-bitcoin-be-classed-as-a-currency-or-commodity-and-does-it-really-matter/

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1713907336

[spazzdla]

It's time for a french revolution it seems, but are the people tired enough of being debt slaves to actually do anything? Probably not.

[Polycoin]

IRS won't consider Bitcoin as a currency but will consider it a commodity so they can tax it!

The IRS are arguing that Bitcoin cannot be considered a currency because it does not have “legal tender status”. And who gives Bitcoin legal tender status? The governments/authorities do of course. And will the governments/authorities give Bitcoin legal tender status? Unlikely, because this will legitimize Bitcoin even more and help it spread. But, that does not matter to many millions of crypto-currency enthusiasts throughout the World.

So, why are governments recognizing Bitcoin if they don’t want it considered a currency? Three guesses? Tax, tax and more tax!

The Internet/Web has evolved faster than most people imagined and no-one controls it even though several authorities/governments have tried. Bitcoin is built upon the Internet/Web, and is a true example of Laissez-faire dynamics that will bring about a real freedom movement.

Source: http://blog.gbcoinfoundation.org/should-bitcoin-be-classed-as-a-currency-or-commodity-and-does-it-really-matter/

Let the IRS try and tax Bitcoin, fucking snubs.

[hilariousandco]

I doubt the US will ever recognise it as legal tender, but it's not going to stop them from trying to take their cut.

[Cryptopher]

You know, it really pisses me off that people are taxed on virtually every conventional financial transaction they do, and what is there to show for it? Some countries show for it better than others, but so much money is wasted away in extravagant wages for people who do a shoddy job.

Bitcoin to me is all about the protocol, the coins are like a share of that transmission power, kind of.

[Crypto-t]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

[hilariousandco]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

[Cryptopher]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

What is capital gains these days? I heard that it was something around £10k PA, but how is it even trackable? Is it one of those where it only matters if you take the piss with your capital gains?

[BitCoinDream]

it is better to be taxed than being banned

[hilariousandco]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

What is capital gains these days? I heard that it was something around £10k PA, but how is it even trackable? Is it one of those where it only matters if you take the piss with your capital gains?

Not sure. Think it's more than that. It's not really trackable, but if you sell the Bitcoins though an exchange they can track you that way.

[IrishFutbol]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

What is capital gains these days? I heard that it was something around £10k PA, but how is it even trackable? Is it one of those where it only matters if you take the piss with your capital gains?

Not sure. Think it's more than that. It's not really trackable, but if you sell the Bitcoins though an exchange they can track you that way.

It'll be something that 99.9999% of the time, will go unnoticed.  Though if you're part of the 0.0001% that gets picked up through an exchange or by buying something with BTC, it's not going to be fun explaining to the government that you forgot to pay taxes.

[Crypto-t]

I don't think they could have banned it, even if they had wanted to.

US is not Nazi Germany yet.

it is better to be taxed than being banned

[durrrr]

So if i withdrawl $10,000 cash worth of bitcoins is there anyway the IRS could tax it? would this be possible? lets say i wanted to spend most of it on a vehicle? new car?

[hilariousandco]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

What is capital gains these days? I heard that it was something around £10k PA, but how is it even trackable? Is it one of those where it only matters if you take the piss with your capital gains?

Not sure. Think it's more than that. It's not really trackable, but if you sell the Bitcoins though an exchange they can track you that way.

It'll be something that 99.9999% of the time, will go unnoticed.  Though if you're part of the 0.0001% that gets picked up through an exchange or by buying something with BTC, it's not going to be fun explaining to the government that you forgot to pay taxes.

Tax evasion does largely go unnoticed as it's hard to spot if you're careful. That's why they always go down hard on celebs who get caught to send a message.

[Beliathon]

The IRS wants to have it's cake and eat it too.

"It's not money! ...err...  but we're going to have to ask you to give us some of that money, please."

What a joke. Our Congress legislates slower and slower, while technology moves faster and faster. They are hopeless. Doomed. Irrelevant. Obsolete.

This is going to end the same way the copywrong war ended. Individuals win, central authorities lose.

IRS and every other nation's fiat-money enforcement departments = Blockbuster Video = OBSOLETE

[Lethn]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

What is capital gains these days? I heard that it was something around £10k PA, but how is it even trackable? Is it one of those where it only matters if you take the piss with your capital gains?

http://www.hmrc.gov.uk/cgt/

[ryanmnercer]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

What is capital gains these days? I heard that it was something around £10k PA, but how is it even trackable? Is it one of those where it only matters if you take the piss with your capital gains?

Not sure. Think it's more than that. It's not really trackable, but if you sell the Bitcoins though an exchange they can track you that way.

It'll be something that 99.9999% of the time, will go unnoticed.  Though if you're part of the 0.0001% that gets picked up through an exchange or by buying something with BTC, it's not going to be fun explaining to the government that you forgot to pay taxes.

In the  U.S. more people are caught for tax evasion due to a friend/family member/neighbor ratting them out than any other reason because they are living above their apparent means then the IRS triggers an audit after receiving a report/tip/complaint. They CAN come to your house and ask you to show a receipt for everything in it as part of an audit or even without an audit, it was actually pretty common pre computers for 'the revenue man' to stop by houses and businesses and do inspections, you can even see it being made fun of in older tv shows. I'm blanking on what show it was but on one black & white show

And while the 4th amendment does allow you to say 'nope' they'll just go get a warrant and come back.

[Cryptopher]

On a positive note UK scraps VAT on crypto trades: http://www.bbc.co.uk/news/business-26426550

Capital gains tax still applies though.

What is capital gains these days? I heard that it was something around £10k PA, but how is it even trackable? Is it one of those where it only matters if you take the piss with your capital gains?

http://www.hmrc.gov.uk/cgt/

Interesting. Best thing to do is just to buy things with the bitcoins and sell the goods you receive, after you have used the goods a little, of course

[counter]

Well I don't view the IRS and there taxes to be legal but still they exist and carry on so to each is own I say. 

[counter]

I doubt the US will ever recognise it as legal tender, but it's not going to stop them from trying to take their cut.

Some used to say cannabis would never be legal in America and alcohol was once illegal.  So I wonder if things get bad enough or mass adoption becomes very popular there could be a paradigm shift.