US Officials Decide That Bitcoin Is Property, Not Money.

P, the IRS said on Tuesday that bitcoin is recognized as property in the US tax system and is applicable to regulating stock and barter pactions.

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< p > this is the first time that the IRS has made a substantive judgement on bitcoin issue.

The guidelines issued by the IRS on Tuesday will bring greater certainty to investors and determine the possible tax liability of bitcoin.

According to this guideline, if the bitcoin bought at $1 is used to purchase coffee priced at $2, it will trigger a 1 dollar capital gain for the purchaser, and the coffee shop will get 2 dollars from it.

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< p > in the face of identifying bitcoin as money or property, the IRS chooses the latter.

Joshua Blank, a tax law professor at New York University, once said in an interview in December 2013, "the danger lies in the birth of an electronic black market similar to the cash economy". "Yue Shuhua, Blanke,"

That's what the IRS wants to avoid.

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< p > as the most popular type of < a href= "//www.sjfzxm.com/news/index_cj.asp" > electronic currency < /a >, bitcoin appeared in the name of Ben Cong in 2008 or published by a group of programmers.

The bitcoin network uses a public ledger to record all pactions based on the pseudonym system. This technological breakthrough makes it possible to buy and sell in the absence of a trusted third party like visa and Western Union.

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< p > a large number of powerful computers are used to record pactions, prevent the same currency from being reused, and produce new bitcoins through the process of mining.

This design has made many early bitcoin participants a millionaire.

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In the early years of P, in the beginning of 2013, a large number of new people began to participate in the bitcoin paction, and its price increased 50 times after that. It reached the peak of 1200 US dollars in 1 bitcoins in early December 2013.

According to the industry index CoinDesk bitcoin price index, the bitcoin price was $577.11 on Tuesday morning.

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< p > according to the guidelines of the us a href= "//www.sjfzxm.com/news/index_cj.asp" and the IRS "/a", bitcoin investors will be regarded as equities investors. If the bitcoin is sold for more than a year, the lower capital gains tax rate will apply, and the highest tax rate in this case is 23.8%. Compared with those with less than one year's sale, the highest tax rate is 43.4%.

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< p > for those investors who suffer from paction losses, the US tax law allows taxpayers to deduct this part of capital losses from any capital gains; taxpayers can also deduct the capital loss of up to US $3000 from the general income of that year.

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< p > > a href= "//www.sjfzxm.com/news/index_cj.asp" > bitcoin < /a > excavate will be asked to report its income in taxable income category, its value will be judged by the price of bitcoin being excavated the same day.

If mining is part of the operation, the miners will be required to pay the salaries tax.

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< p > according to the guidelines, the IRS will ask taxpayers to submit information in similar formats to similar contractors and to make payments to independent contractors.

The guidelines come into effect immediately from the time of publication, and cover past pactions and tax returns as well as past pactions.

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< p > the Inland Revenue Department said in the circular that as long as the tax payer can pay for any insufficient tax and does not submit a declaration for "reasonable reasons", he will give a tax deduction to the taxpayer who has made a paction before the date of Promulgating the guidelines.

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Less than three months before the guidelines issued by the IRS, less than p months ago, Nina Olson, a spokesman for the national taxpayers' rights and interests, once said that the IRS should issue a taxpayer guideline for the digital currency pactions. Nina Nina

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Nina, Olsen, in the annual report submitted to Congress by the independent office in the Internal Revenue Service in January, said P, "it is the responsibility of the government to make public instructions on the rules they are required to follow.

There is no clear answer to the question of when taxpayers should be and how to report earnings and losses in digital money pactions, which may encourage tax avoidance.

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