IRS Rules for Bitcoin / Virtual Currency

[bitcoininvestmentnews]

The IRS has set out specific rules in regard to Virtual/Cryptocurrency that you will want to understand as you build your Cryptocurrency Portfolio.

Some of the important points in the document include:

• The IRS considers “Virtual Currency” to be “Personal Property”. This means it is not subject to rules that apply to Securities such as Stocks and Bonds.

• Trading “Virtual Currency”: “Under currently applicable law, virtual currency is not treated as currency that could generate foreign currency gain or loss for U.S. federal tax purposes.”

• If you receive payment in “Virtual Currency” for goods or services you must declare it as income for the “fair market value” of the currency at the time of the transaction.

• “Virtual Currency Mining ” profits are taxable at the rate of the virtual currency’s “fair market value” at the time the “mining profits” are received.

Much more is explored in this document which comes directly from the IRS itself.
Full IRS document: https://bitcoininvestment.news/irs-rule ... ocurrency/

[patrickcoin]

Can anyone clear me the IRS ? would be of great help.

[patrickcoin]

I really not able to understand the IRS and virtual currency together

[Temper]

http://Bitcoin.tax helps you comply with the task of doing your taxes if you happen to be in the US.

[nandibear]

Myself --- Maybe if I was running some huge & profitable business which accepts Bitcoin as payment would I ever consider reporting anything to the IRS regarding cryptocurrency. Just me, but do whatever you want I couldn't care less what others do with their money and the reporting of it.