Bitcoin has digitized the transfer of value at the speed of the internet. Yet such technological leaps tend to temporarily overload a bureaucracy’s ability to keep up with regulations, laws and taxation.

Currently, the IRS designates bitcoin as “property” rather than currency, and characterizes the sale of bitcoin in terms of capital gains and losses, rather than ordinary income. As such, the “Wash Sale Rule” does not appear to apply to sales of bitcoin. Lacking guidance from the U.S. Department of the Treasury or the IRS to the contrary, Bitcoiners can potentially benefit from this loophole that takes advantage of fluctuations of value.

(Excerpt) Read more Here | 2021-08-12 19:00:00
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