Canada Revenue Agency To Tax BitCoin Transactions

First time accepted submitter semilemon writes "The Canada Revenue Agency has started paying attention to BitCoin transactions, as it says users will have to pay tax on all transactions using the currency. From the article, "The CRA told the CBC there are two separate tax rules that apply to the electronic currency, depending on whether they are used as money to buy things or if they were merely bought and sold for speculative purposes. "Barter transaction rules apply where BitCoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email. In this situation, that means whatever you've received in exchange for your $1 worth of vegetables must be documented as a taxable gain of at least $1 somewhere. When it comes to trading BitCoins for profit, the tax man says there are tax implications there, too. "When BitCoins are bought or sold like a commodity, any resulting gains or losses could be income or capital for the taxpayer depending on the specific facts," ruled the CRA."

Comments

Re:Kind of innevitable and entirely reasonable

[countach74]

In the U.S., the vast majority of the federal budget goes to fighting unnecessary wars and entitlement programs. "Taxes suck, but roads are cool" simply isn't a good argument. Like anyone else, I think roads are cool too, but you and I both know that very little of our tax money goes to them. If the government would bug out of the business that they don't belong in: health care, policing the world, entitlement programs, the war on drugs, etc etc, we'd all be better off.

Oh, but I can see it coming now: "What about the elderly? What about the people in need?" Nothing beats having to take responsibility for your situation and do something to protect and care for it. Ultimately, the real problem with all of this big government spending is that it assumes (and encourages) that people are powerless and need to be taken care of (as if we're not adults or something?). Personally, I don't buy that: I know that I am taking care of myself and my family and I am nothing special. I believe in my fellow men and women to be able to do the same; assuming we can't is nothing short of insulting.