110 sats \ 1 reply \ @sancristrader 8 Nov 2022 \ on: IRS: People are failing to report payments in crypto bitcoin
Because when you make laws that are absurd and unenforceable, you get a lawless society in the end, that doesn't respect the law.
According to IRS, when i buy a cup of coffee for 5000 sats, it's a taxable event: i have to convert 5000 sats to USD, then find the USD acquisition price of those 5000 sats and file the difference as capital gains on my schedule D. This is because crypto is not treated as currency, it's treated as an asset for the tax purposes. Foreign currencies have $300 transaction size exemption from capital gains.
I can't buy a coffee with a bushel of wheat, but I can with bitcoin. Bitcoin is obviously not a commodity. So, they are categorizing bitcoin arbitrarily in order to gain power over users. But because their definitions are baseless and inadequate, the power they claim to hold is illegitimate.
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