The following post by CuntAbuse is being replicated because some comments within the post(but not the post itself) have been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/r/ Bitcoin/comments/bp4rsz
The original post's content was as follows:
As crypto goes up in price, capital gains become more of a concern. With news such as ebay and whole foods possibly accepting crypto as a payment this makes me wonder what are the current efforts that are happening in this space to try and re-classify crypto as currency in the united states instead of property? There is very little info on this subject beyond "how to manage your taxes" help articles which really isn't what I am focused on. As it stands, if places accept crypto as payment I cannot spend my crypto on items without the issue of capital gains. Additionally, I cannot exchange crypto for fiat without the issue of capital gains. Even more concerning, how do business owners that accept crypto as a payment deal with this?? Ebay is not going to hodl, and neither would a small business owner because the business has its own costs it needs to regain out of the sale or purchase for service, so they are going to exchange the crypto for money to ensure they profit in the immediate short term which means they also have to deal with capital gains. The bullet point list of when you pay capital gains on all this as far as I know is as follows:
- Sale of crypto to fiat
- Sale of crypto for another crypto
- Exchange of crypto for an item or service (capital gains)
- Mining (ordinary income and capital gains)
- Fork income and airdrops
- Crypto-denominated compensation
However, the following are non-taxable events: the purchase of crypto with fiat; transferring coins between wallets; and gifting up to $10,000 equivalent per recipient. Users can also gain tax benefits when funding tax-favored IRA accounts.
You can also apparently move to Puerto Rico, but that's not really realistic, at least for me. It still does not answer the issue for business's and specifically small business owners that exchange crypto for fiat as well. It seems that with current classification, it discourages consumers to buy and discourages businesses to adapt...so what efforts are being made right now to change these classifications and how can I best follow news in this space and filter out the "tax help" articles?
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