If bitcoin does become legal tender in El Salvador, does that mean when a US per... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

		throwaway129856 on June 6, 2021 \| parent \| context \| favorite \| on: El Salvador to adopt Bitcoin as legal tender If bitcoin does become legal tender in El Salvador, does that mean when a US person spending/exchanging it there (or any where in the world) would not be subject to capital gains tax on the spend/exchange? Currently the IRS states that because bitcoin does not have legal tender status in any jurisdiction, it is not a foreign currency. It is only considered a virtual currency and subject to capital gains reporting and tax. But what would happen if bitcoin becomes in both categories at the same time: a virtual currency and a legal tender foreign currency?

lostmsu on June 6, 2021 [–]

I thought in US you pay the same capital gains tax on currency exchange sans some relatively small allowance for tourism.

_delirium on June 6, 2021 | [–]

Yes, if you realize a profit on forex trading, you do have to report it as a capital gain.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact