<p>The U.S. government views Bitcoin as a commodity, kind of like gold.</p>

<p>If you buy Bitcoin at one price in dollars, and sell it at a higher price in dollars, you will have a gain (in dollars), that you will have to pay tax on.</p>

<p>If you buy some Bitcoin (using dollars), and then use the Bitcoin to buy a car, you have made a "two stage" purchase of a car. (If you then re-sell the car for dollars, you may have a taxable gain if the dollars you receive are more than the dollars you used to buy the Bitcoin that you used to buy the car.</p>

CC BY-SA 3.0
2016-02-26T14:05:52.187Z
Would I have to pay sales tax on the car?
Jesse
CC BY-SA 3.0
2016-02-26T14:07:21.250Z
@Jesse: Consult your tax accountant. You're not a car dealer so the answer may be "technically yes, but the state won't chase you." That was actually my experience with a "use" tax. I filed and paid $24 (6% of $400), and the state of Connecticut sent it back to me.
Tom Au
CC BY-SA 3.0
2016-02-26T02:57:49.427Z
2016-02-26T02:57:49.427Z
Tom Au
<p>How does the U.S. government view Bitcoin?  Is it a currency, a commodity, or something else?</p>

CC BY-SA 3.0
2016-02-26T04:24:09.930Z
https://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance
Nick ODell
<currencies><legal><government><usa>
How does the U.S. government view Bitcoin? Is it money?
Jesse
# How does the U.S. government view Bitcoin? Is it money?

(Asked by: username_0 on 2016-02-25)

How does the U.S. government view Bitcoin? Is it a currency, a commodity, or something else?

**Tags:** currencies, legal, government, usa

> **Comments:**
> **username_1**: https://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance  

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## 1 answers

### Answer by username_2 on 2016-02-26. Score: 1 | Accepted answer

The U.S. government views Bitcoin as a commodity, kind of like gold.

If you buy Bitcoin at one price in dollars, and sell it at a higher price in dollars, you will have a gain (in dollars), that you will have to pay tax on.

If you buy some Bitcoin (using dollars), and then use the Bitcoin to buy a car, you have made a "two stage" purchase of a car. (If you then re-sell the car for dollars, you may have a taxable gain if the dollars you receive are more than the dollars you used to buy the Bitcoin that you used to buy the car.

> **Comments:**
> **username_0**: Would I have to pay sales tax on the car?  
> **username_2**: @username_0: Consult your tax accountant. You're not a car dealer so the answer may be "technically yes, but the state won't chase you." That was actually my experience with a "use" tax. I filed and paid $24 (6% of $400), and the state of Connecticut sent it back to me.  

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