read what it said... you said its clear, I'm saying it's not.
I would like to clarify something. I am quoting what is written on the IRS website. It is not my opinion.
@Nyk I will copy and paste, exactly what is written on the IRS website regarding taxes and cryptocurrency. All of the text below is taken from the link I provided on the IRS website. The way crypto is taxed is clear enough. If you, or anyone says it's not clear then can you state specifically what is not clear about it. Also give you reference URLs to official government website to backup what you say, as I have done. If you cannot give those official references that go against what is written below then you are quoting your opinion only. As I said this is not my opinion below is the text exactly copied and pasted from from the IRS website on the link I gave you previously.
============================Start Copy and paste text from IRS website======================
Q4. Will I recognize a gain or loss when I sell my virtual currency for real currency?
A4. Yes. When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses. For more information on capital assets, capital gains, and capital losses, see
Publication 544, Sales and Other Dispositions of Assets.
Virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency. For more information on the tax treatment of virtual currency, see Notice 2014-21. For more information on the tax treatment of property transactions, see
Publication 544, Sales and Other Dispositions of Assets.
What records do I need to maintain regarding my transactions in virtual currency?
A45. The Internal Revenue Code and regulations require taxpayers to maintain records that are sufficient to establish the positions taken on tax returns. You should therefore maintain, for example, records documenting receipts, sales, exchanges, or other dispositions of virtual currency and the fair market value of the virtual currency.
============================End copy and paste text from IRS website======================
Reference URLs from IRS website:
https://www.irs.gov/pub/irs-drop/n-14-21.pdf
Frequently asked questions and answers about Virtual Currency transactions.
www.irs.gov
The IRS has not declared a deminimus rulling for crypto yet, there really is no guidance, but you are right, it
would be an accounting nightmare to try to keep track of every direct payment using crypto.
@AgnewPickens, you are correct, however my understanding is ruling you are referring to is to request changes to the existing tax laws for crypto, and since this has not yet passed the existing tax laws, stated above are applicable. If they are not applicable I am not clear why it is stating that taxes must be paid on capital gains on crypto?
There are now also new IRS questions regarding crypto at the very top on the Tax form 1040.
Did you do any crypto in 2019, yes or no? If you check no, but IRS later finds it, you could face big trouble. You have to answer and file under penalties of perjury, and the IRS is unforgiving. Just look at offshore accounts, where the IRS won big time on just such a question.
www.forbes.com
You may think you will not be caught, but the IRS is hunting crypto in a big way. The best way to avoid penalties is to disclose and report showing you did not willfully evade taxes. You could face large penalties and even potential criminal investigation.
www.forbes.com
The above information is enough to show that the US is taking taxation of crypto seriously and there can be serious penalties for those that do not pay their taxes on crypto gains according to the articles posted and the information on the IRS website. With all that in mind I cannot see how anyone would want to spend their DASH on cheap goods and services to get a 10% discount with craypay, a centralized body, and in so doing, risk being caught out by the IRS. Who would take that risk for a cheap discount? My point that not only is it a complete nightmare to account for gains and losses it is also a complete nightmare when it comes to the taxes and the penalties and the legislation around crypto in the USA. Is it really worth taking the risk?
But not only this people in the US are buying crypto for investment purposes i.e. to see an increase in value. Dash is also appreciating in value over the long time period (5 to 10 years) so who would want to sell an appreciating asset to buy goods and services in the US? It doesn't make sense to do that.
I have made the point as best that I can. It is clear that others feel differently. My point is there are countries in the world where these draconian tax laws do not exist and the governments have actually encouraged people to use crypto and passed laws so that people can use the crypto as a day to day payment as they have done in Venezuela. It makes more sense therefore to invest in such countries to establish Dash and where there is a real need to use Dash as a day to day payment method which is also desperately needed.