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Topic: 2013-12-02 forbes.com: Bitcoin's $13.50 To $1,200 Eleven Month Climb---Now Taxes (Read 1487 times)
December 02, 2013, 05:46:39 PM
The Wall Street Journal asked Should You Invest in Bitcoin? and printed a WSJ special section: “Bitcoin or Bust“. The conclusion: sure, why not buy and hold some?
correct
correct
December 02, 2013, 05:06:38 PM
no doubt in my mind that the IRS will do what it can to tax bitcoin as much as possible, so it likely won't be considered a currency.
December 02, 2013, 10:15:22 AM
http://www.forbes.com/sites/robertwood/2013/12/02/bitcoins-13-50-to-1200-eleven-month-climb-now-taxes/
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One key question these days is whether you are taxable on the appreciation in Bitcoin you bought at $13.50 that is now worth $1,000. Currency wouldn’t be, but it isn’t clear that’s what Bitcoin is in the eyes of the IRS. Transactions in Bitcoin could be property, barter, foreign currency, or a financial instrument. Barter seems most logical, but not everyone agrees.
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Some suggest marking Bitcoin to market each year, which would be a good deal for the IRS. Essentially, that would valuing and reporting gain or loss at the end of each year even if you continue to hold it. Surely no one will do that this year unless it is mandated, which it is not.
Indeed, until the IRS rules differently, if you are holding highly appreciated Bitcoin you probably won’t be taxed until you dispose of it. That should be easy to track if you buy Bitcoin for cash and then sell it for cash. The difference is income, either capital or ordinary.
Indeed, until the IRS rules differently, if you are holding highly appreciated Bitcoin you probably won’t be taxed until you dispose of it. That should be easy to track if you buy Bitcoin for cash and then sell it for cash. The difference is income, either capital or ordinary.
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