Internal Revenue Service: Bitcoin Should Be Treated as Property For Federal Tax Purposes
Just in time for the income tax filing deadline comes a news release from the Internal Revenue Service (IRS) regarding the taxation of bitcoin and other digital currencies. In short, the notice states that virtual currency shall be treated as property for federal tax purposes in the United States. Some interesting points: Virtual Currency not treated as currency that can generate foreign currency gains/losses. Taxpayers are liable for determining the fair market value of their virtual currency. Taxpayers must report gains/losses upon exchange from virtual currency to fiat currency, for....
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In a recent IRS News Release, America's Internal Revenue Service reveals their Virtual Currency Guidance. While Bitcoiners are busy watching the Coinsummit livestream, the IRS Virtual Currency Guidance that was promised many months ago has been leaked. The most noteworthy points are right in the title: Virtual Currency Is Treated as Property for U. S. Federal Tax Purposes. General Rules for Property Transactions Apply. Here is the full release: IRS Virtual Currency Guidance: Virtual Currency Is Treated as Property for U. S. Federal Tax Purposes. General Rules for Property Transactions....
The United States’ tax agency, the Internal Revenue Service, clarified its position on cryptocurrencies Tuesday in a statement. The Internal Revenue Service today issued a notice providing answers to frequently asked questions (FAQs) on virtual currency, such as Bitcoin. These FAQs provide basic information on the U.S. federal tax implications of transactions in, or transactions that use, virtual currency. In some environments, virtual currency operates like “real” currency — i.e., the coin and paper money of the United States or of any other country that is designated as legal tender,....
The Treasury Inspector General for Tax Administration recently released a paper on taxation of virtual currencies including Bitcoin, officially requesting the IRS to provide guidance for tax treatments of digital currencies and develop a strategic approach. Based on the 2014 tax guidance for virtual currencies released by the Internal Revenue Service (IRS), digital currencies like Bitcoin are considered labeled as property for tax purposes. The report of the US treasury reads: “The notice provides that virtual currencies should be treated as property for tax purposes. The same general tax....
Another eventful week at CCN. We learned that the United States Internal Revenue Service (IRS) is treating bitcoin as property for tax purposes, that the bitcoin price dropped below $500, that transaction malleability did not bankrupt Mt. Gox, and more. Here are our top stories for the week of 24 March - 30 March in case you missed them. [youtube http://www.youtube.com/watch?v=shkvBF6n1DY?rel=0]. IRS Virtual Currency Guidance. The IRS is treating virtual currencies as property for tax purposes. The United States has finally set some clear rules regarding taxation of bitcoin. According to....
Edmund C. Moy, who served at the 38th Director of the United States Mint, has publicly shared his thoughts on the bitcoin tax guidance released by the Internal Revenue Service this week. In a blog post from Friday morning, Moy said that "the guidance issued provides much needed clarity but is a big speed bump in the nascent crypto currency's quest to become mainstream," but added that "as bitcoin's use becomes more widely accepted, the government may reconsider." In the tax guidance, the Internal Revenue Service stated that bitcoin should be treated as property, not as currency. Users of....