The United States will tax bitcoin and other virtual currencies as property, the IRS announced on Tuesday. Virtual currency will be treated as property for U.S. federal tax purposes, and transactions in virtual currency will be subject to general tax principles. Taxpayers who receive virtual currency as payment for goods or services must calculate that payment at the currency’s fair market value in U.S. dollars as of the date that payment was received. That includes taxpayers who mine virtual currency.
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Bitcoin Fans Rejoice in IRS Ruling
Posted by: Richard Adhikari March 27, 2014 11:23 AMThe United States will tax bitcoin and other virtual currencies as property, the IRS announced on Tuesday. Virtual currency will be treated as property for U.S. federal tax purposes, and transactions in virtual currency will be subject to general tax principles. Taxpayers who receive virtual currency as payment for goods or services must calculate that payment at the currency’s fair market value in U.S. dollars as of the date that payment was received. That includes taxpayers who mine virtual currency.