Tax,
Banking
Sep. 13, 2017
Cryptocurrency transactions may get tax relief
A bipartisan bill, the CryptoCurrency Tax Fairness Act of 2017, was introduced in the House by Rep. Jared Polis (D-Colo.) and Rep. David Schweikert (R-Ariz.).
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
The IRS says bitcoin and other digital currency is property for tax purposes. That sounds simple, but has quite far reaching effects. For example, if you use bitcoin to pay for something worth $500, what does the IRS say? You just sold your bitcoin.
You have gain or loss on the sale, depending on how much you paid for the bitcoin, and how much it is worth when you sold (presumably about $500). Is that gain ordinary, or capital, short or long term. It depends. So buying that $500 ...
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