Posted 03/25/2014 at 3:43 PM
Posted 3 years ago
According to the IRS, Bitcoin is taxable as property, and not as currency.
Virtual currency is considered property by the IRS. The same principles that guide property transactions will guid Bitcoin.
As reported by Crypto Coins News, the IRS states the following:
“The Internal Revenue Service (IRS) is aware that “virtual currency” may be used to pay for goods or services, or held for investment. Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, it operates like “real” currency — i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance — but it does not have legal tender status in any jurisdiction.”