I was just viewing news articles on my phone when this got my attention. Basically in the US bitcoin is considered as property. This means that you need to report purchases with bitcoin on your taxes.
The article also says that:
If you've held those bitcoins for less than a year and sell them, that cash will be taxed as income.
Here's what shocked me:
If you've held for over a year, it's taxed as a capital gain - which could run 20%
But there is some hope:
A bipartisan bill, "The Cryptocurrency Tax Fairness Act" was presented to the Congress in September. It' seeking to create a tax exemption for cryptocurrencytransactions under $600.
Summary
To keep it short here's how i understood the article:
- Bitcoins held for < 1 year and sold -> taxed as income
- Bitcoins held for > 1 year -> taxed as capital gain 20%
- There's some hope that transactions < $600 will be an exception to this
I'm a beginner in cryptocurrencies and steem, if I said something wrong I'm sorry, just comment and i edit the post.
Also I don't live in the US, just wanted to give you guys a heads up in case you missed it.
Thank you for reading the post!