New York State: Bitcoin is ‘Intangible Property’

Great news: #bitcoin is now "intangible property," so sales of BTC not subject to sales tax in NY. First affirmative statement on this.
— Marco Santori (@msantoriESQ) December 9, 2014

Bitcoin is to be treated as ‘intangible property’ and transactions will not be subject to sales tax, the state of New York revealed today.
The New York State Department of Taxation and Finance released a memorandum dated December 5, stating that the exempt status applies to ‘convertible digital currency’, following months of speculation since an IRS noteissued in March. The Tax Department states:
‘The use of convertible virtual currency by a customer to pay for goods or services delivered in New York State is treated as a barter transaction. For sales tax purposes, convertible virtual currency is intangible property. Since the purchase or use of intangible property is not subject to sales tax, any convertible virtual currency received by a party to a barter transaction is not subject to sales tax.’

This post was published at Coin Telegraph on 2014-12-09.

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