NY: Bitcoin sales are not taxable

Tax

credit: Phillip

Digital currencies are intangible assets and therefore not taxable! That’s a fact from the Tax Department Policy from December 5th. So if you buy Bitcoin you don’t have to pay sales tax. This decision comes along after a few months since the the US Internal Revenue Service (IRS published a orientation about the taxation of Bitcoin as a possession. So now we have the answer to the question how to tax Bitcoin in the USA.

The sale of a digital currency is a sort of barter business. And with this definition just ordained goods and services that were bartered towards crypto-currencies are subject to turnover tax. The memo give some examples when to pay sales tax:

In a barter transaction, sales or use tax (sales tax) is due from each party based onthe value of the property or services given in trade if what is received in exchange is subject tosales tax. Services given in trade are taxed based upon a party’s normal charge for the service it provides.

Coindesk published the complete memorandum of the Tax Departement

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