How do you do the taxes for reporting the purchase and sale to the government when the purchase is purely in bitcoin? If it's reported as a gift, then there's a gift tax typically.
I guess we call it a barter.
Meaning i would most likely be subject to a tax on income or gains.
Not really gaining anything.
I assume we take the current value of bitcoin for any variable math equation to calculate the tax.
Lets say
1,000 Coins
$1 Each
$1,000
15% Income or whatev Tax*
$150 Tax
$850 for me.
I have no problem paying the tax, we need to figure out a way to do this right. I doubt the govt would care as long as i attempt to pay the proper tax amount to the best of my ability.
