IRS Provides Guidance on the Taxation of Bitcoins and Virtual Currency

IRS Provides Guidance on the Taxation of Bitcoins and Virtual Currency

Yesterday the IRS answered this long standing question about the taxation of virtual digital currency, announcing that virtual digital currency like Bitcoins should be taxed as property instead of currency for federal tax purposes and the same rules that apply to property transactions like the sale of stocks apply to virtual currency. So what does this mean for you if you’re a tech savvy taxpayer dabbling in trading this form of currency? Full story