IRS plans to tax Bitcoin after new record Heights

IRS plans to tax Bitcoin after new record Heights

The value of the Bitcoin cryptocurrency the other day exceeded $41,000. Bitcoin’s huge expansion is causing concern in the Financial Staff and the Independent Revenue Authority (AAE) according to information obtained by the popular bitcoin news outlet, Bitnewsbot.

The result is that there are serious considerations for implementing a legislative framework regulating the use of even the bitcoin tax regime.

Economic Staff officials say a comprehensive and fortified legislative framework is needed to tax cryptocurrencies. Perhaps, at a much later stage, we will also be able to pay taxes via Bitcoin.

 

The taxable value of Bitcoin

The taxable value of Bitcoin is the goodwill set by its owner who makes its sale. Goodwill is defined as the difference between the acquisition price paid by the taxpayer and the selling price received. In this way, the costs associated with the purchase or sale of the securities are included in the acquisition price and the selling price.

The tax rate is 15% on the capital gains receivable. Bitcoin traders (who actively trade bitcoin and educate themselves by reading crypto trading books) can reduce the costs associated with transactions if they naturally proceed to a normal declaration and possible taxation of their transactions.

Expected reaction of the tax office, as Bitcoin is characterized as the “Currency of the future” by many and will slowly enter our lives. In fact, financial analysts to highlight the dynamics of Bitcoin say the following phrase:

If a nuclear war were to destroy half the planet tomorrow, what would continue to live, unaltered, is Bitcoin.

 

Answer with digital euro from the ECB – The whole project

The technical study on the issue of the digital euro by the European Central Bank is in public consultation until 12 January 2021. In fact, the “Chapter” presented a questionnaire and information on the ECB’s projects and the bodies involved in this innovative project.

This plan aims to reduce transaction costs, speed up, facilitate the financing of businesses and banks in the event of a crisis without the necessary intervention of central banks or the ECB, the availability of a means of payment in natural disasters, wars, pandemics, and the prevention of economic crimes.

 

Alongside the physical euro

According to the study, the digital euro will not replace the physical euro and cash, i.e. it will not be a parallel currency in circulation.

It will have the same exchange rate, but it may have a different interest rate in order to discourage speculative games, huge cash withdrawals from banks, and conversion into a digital euro or to operate the euro as an investment instrument.

The digital euro must remain a means of payment, serve the role of the ECB and euro area monetary policy and comply with European treaties and legislation on privacy, security, prevention and suppression of economic crimes, etc.