Bitcoin as a Currency
Tax Treatment: If Bitcoin were treated as a currency, gains or losses from its exchange would be taxed at ordinary income rates, similar to foreign currency transactions. This means that no matter how long you hold Bitcoin, you would pay your marginal income tax rate on any gains, which can be as high as 37% on federal taxes. This treatment is less favorable for long-term investors.
Bitcoin as a Commodity
Tax Treatment: The IRS treats Bitcoin and other cryptocurrencies as property for federal tax purposes. This means that any gains or losses from the sale or exchange of Bitcoin are subject to capital gains tax, similar to stocks or other investments. The tax rate depends on the holding period:
Short-Term Capital Gains: If you hold Bitcoin for less than a year, gains are taxed at your ordinary income tax rate.
Long-Term Capital Gains: If you hold Bitcoin for more than a year, gains are taxed at a lower rate, which can be 0%, 15%, or 20% depending on your income bracket.
bitcoinstr / Samuel #BTC
npub1qz…5xaaq
2025-04-28 21:33:00
in reply to nevent1q…xpy3
Author Public Key
npub1qzxv58exzw2qnvsc67v32etqt9crw6s33cxx830af08y33t65east5xaaqPublished at
2025-04-28 21:33:00Event JSON
{
"id": "89799a3778775d04ecd1fc8c27dc18722894f7857b7284b35a66192ee5356019",
"pubkey": "008cca1f26139409b218d7991565605970376a118e0c63c5fd4bce48c57aa67b",
"created_at": 1745875980,
"kind": 1,
"tags": [
[
"e",
"a0047554b6c4f0ff5cde9803cb95b1c3d932cab7327eefa1c3fa7f9251891d8f",
"",
"root"
],
[
"p",
"6cc4225f7970c56b9f4a1784a85ddbbde97599e365ba8c864a4d9105942b7222"
],
[
"p",
"3f770d65d3a764a9c5cb503ae123e62ec7598ad035d836e2a810f3877a745b24"
]
],
"content": "Bitcoin as a Currency\n\nTax Treatment: If Bitcoin were treated as a currency, gains or losses from its exchange would be taxed at ordinary income rates, similar to foreign currency transactions. This means that no matter how long you hold Bitcoin, you would pay your marginal income tax rate on any gains, which can be as high as 37% on federal taxes. This treatment is less favorable for long-term investors.\nBitcoin as a Commodity\n\nTax Treatment: The IRS treats Bitcoin and other cryptocurrencies as property for federal tax purposes. This means that any gains or losses from the sale or exchange of Bitcoin are subject to capital gains tax, similar to stocks or other investments. The tax rate depends on the holding period:\nShort-Term Capital Gains: If you hold Bitcoin for less than a year, gains are taxed at your ordinary income tax rate.\nLong-Term Capital Gains: If you hold Bitcoin for more than a year, gains are taxed at a lower rate, which can be 0%, 15%, or 20% depending on your income bracket.",
"sig": "97fe5e04e3f83696a73204c6e9eb1dc06e769ab0c248c9c88ee02e516d79be99d60c29173d2643de3e56657f49181f71098fe432492e57777df68323781d5a5c"
}