The whole amount counting on the actual rate.
If I traded 31,500 Little Caesar's pizzas for a house of $200,000 and sold it many years later at $400,000? I would have to pay taxes on the house for the $400,000.
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That is not true with United States federal income tax.
You would calculate the fair market value of 31,500 Little Caesar's pizza's and use that as a cost basis. You would subtract that value from the $400,000 and pay the capital gains income tax on the difference.
Depending on how you acquired the 31,500 Little Caesar's pizza's you may or may not have to pay an income tax on the fair market value of 31,500 Little Caesar's pizza's in the year that you acquire the house.
Oh yeah you're right. I forgot that very important part. You only pay taxes on the gains. Little Caesar's pizzas are worth $6.35 per pizza. 31,500 of them is roughly about $200,000. So you are selling your house for a 400,000 - 200,000 = $200,000 profit and therefore need to pay the capital gains tax on only that $200,000.
I'm thinking that at this time we should enjoy bitcoin as an asset. If it becomes very popular it will probably be recognized as a currency, making income tax come into play instead of the lovely capital gains tax. Enjoy it while you can.
