So I realize that per IRS guidance, Bitcoin is a taxable capital asset and every transaction is taxable. Logistically though, I can't find ANYTHING explaining exactly how it needs to be reported.
1) Do I just add up all of my proceeds and subtract all of my basis?
2) Let's say you have an account with 10 BTC you've held for over a year. You then purchase 1 BTC at $400 and sell it an hour later for $401. Do you have short term gain of $1 or long term gain of $1? Is there a way to keep your long term holdings separate in order to day trade while still keeping a long term position in order to take advantage of the lower rate.
3) Break even transactions: If I buy 1 BTC at $400 and sell it a month later for $400, $400.01 or something else that rounds to $400, does it have to be reported?
(Of course the IRS would come out with burdensome rules and not bother to explain them in any kind of helpful way.)
Any help would be appreciated. If I can get some good advice (preferably with references or some kind of credential) I might make an FAQ to try to make things clearer for the community.