Archive: 3/25/2014
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  3/25/2014, Adar Bet 23, 5774

Bitcoins to be Considered Property, Not Currency


The United States Internal Revenue Service announced today (Tuesday) that for all intensive tax purposes, the Bitcoin is to be considered property, a virtual currency, and not actual currency itself. This is valid unless the Bitcoin is used to pay employee wages or the like.

The IRS's statement likens the Bitcoin to stocks, bonds and other virtual currency and makes sense in light of the fact that it is purchased and sold person to person, without bank involvement.