When you think about taxes, there are a couple of things that immediately come to mind. The first is that taxes are connected to currency. The second is that those taxes are controlled by the governments that put those taxes into action. A much more elusive tax-related issue is that crypto currencies are becoming more popular. People have already started using them for major purchases. So learn more about Crypto-tax Rules here!
Why Are Crypto-Currencies so Hard to Track? About Crypto-tax Rules
These types of currencies are not classic anyways. They don’t follow the same rules as traditional currencies do. They also do not belong to a specific country. The fact that crypto currencies don’t follow normal systems means that tax systems should work to keep up with the changing landscape.
Israel’s Crypto-tax Rules
Israel has recently drafted a set of rules that will help their tax department collect taxes on crypto-currencies such as Bitcoin. The most prevalent of these rules is that crypto-currencies are to be seen as assets which aren’t classified as money but as wealth in another sense. Based on this classification, taxes are paid when people sell their holdings.
The IRS in America Still Mulling it Over – About Crypto-tax Rules!
The IRS still has not come up with a hard and fast set of rules regarding the taxation of crypto-currencies. But, they seem to be leaning towards considering them as capital gains which is similar to the way Israel is thinking about them. If this happens, interest rates and taxes would be more like those for property rather than currency.
As with anything new we are bound to see some changes in the future. But, for now we can see some examples of how countries are responding to the new realities that govern online spending. We hope it was useful for you to know!