The IRS will levy a cash income for Bitcoin and Bitcoin


nnnPost Comment: After the SEC made it clear that part of the ICO tokens belong to the securities, the IRS will also face the issue of cash and the cash tax of the bitcoin. It is reported that the organization that the bitcoin and Bitcoin cash sales generated income in line with tax standards. So investors in the United States need to be discussed with the accountants and tax officials for the problem.n
nnTranslated by: Inan
nRecent developments have led many people to start digging and investing in Bitcoin because they think it is the beginning of a major investment. Regulators and tax experts are currently studying digital money and how they should be dealt with when dealing with income taxes.n
nAs there are no rules and procedures on how to levy a digital currency, the recent emergence of Bitcoin Cash has caused a lot of investor doubts, and they want to know whether taxpayers will be a bit Cash profits are treated as “free cash”.n
nA recent report on the Wall Street Journal explored the problem, and the answer is not clear from the report.n
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nBitcoin and Bitcoin Cashn
nBitcoin is a digital currency. It is a centralized book that can be attended by parties from all over the world. Bitcoar cash is another digital currency created by miners and Bitcoin developers to cope with the expansion problem.n
nIn the Bitcoin network, the verification process usually takes 10 to 15 minutes or more, compared with a debit card, which is very long. This slow process and frequent network congestion makes developers and miners realize that the more people who trade at the same time, the greater the scalability and speed of the network is facing the challenge.n
nThe mining pool agreed to integrate the technology with SegWit.n
nSegWit2x can make signature and verification data smaller, but it does not completely solve the problem.n
nIn August, miners and developers launched a hard bifurcation, leading to “split” and created a new currency called Bitcoin Cash. It is said that this new version of the verification process faster, and has been upgraded to 8mb block.n
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nUS Internal Revenue Service Taxes on special currencyn
nNow, those who hold Bitcoin before the bifurcation have received bit currency cash equal to the amount of bitcoin in the purse, especially those who support bifurcated wallet and exchange.n
nAccording to Bitcoin.tax, there is currently no guideline on how to treat Bitcoin and Bitcoin cash in terms of taxation, but it can be confirmed that the applicable income tax occurs when selling Bitcoin or Bitcoin Cash.n
nAlthough many Bitcoin and Bitcoin cash holders may think that these do not necessarily pay taxes, the IRS does not think so. Several Reddit users are discussing this issue, a user pointed out:n
nn”The IRS has already said that Bitcoin is considered a property, mining is treated as income, holding a bit currency with the same gold. $ 0 The cost basis means that you are free to get the capital if you sell it, Then there must be a gain. “n
nnThe processing of the digital currency can be zero cost. If the holder sells his Bitcoar cash and receives 100% of the profits as capital gains, he shall be taxable.n
nThus, the statement refers to the normal income as part of the capital gains. Bit currency cash holders may choose to report their BCH as income and then pay the required amount of tax.n
nUS Internal Revenue Service’s 2014-21 notice wrote:n
nn”Virtual currency is considered a property for US federal tax purposes.”n
nnThe principle of general taxation also applies to virtual currency transactions.n
nFor the IRS, Bitcoin is a capital asset that, if sold within 12 months, is a short-term capital gains and is sold in less than one year. The IRS will levy taxes on income tax (15% to 20%).n
nThe IRS has an advanced system, and we recommend that US investors consult with their accountants and tax officers to determine specific national regulations to determine compliance with their specific federal and state tax laws and to avoid disputes with taxpayers.n

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