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Title: Implication of the IRS ruling on trading gain / loss Post by: Joe200 on March 26, 2014, 01:52:15 PM Here is the actual IRS ruling by the way: http://www.irs.gov/pub/irs-drop/n-14-21.pdf
What is the implication of the ruling on trading gain / loss? I am not a lawyer - just want to make sure I understand. Gains / losses should be treated as capital gains? In other words, https://bitcointaxes.info calculates things correctly? Title: Re: Implication of the IRS ruling on trading gain / loss Post by: shawshankinmate37927 on March 26, 2014, 02:23:48 PM Here is the actual IRS ruling by the way: http://www.irs.gov/pub/irs-drop/n-14-21.pdf What is the implication of the ruling on trading gain / loss? I am not a lawyer - just want to make sure I understand. Gains / losses should be treated as capital gains? In other words, https://bitcointaxes.info calculates things correctly? I'm not a lawyer or an accountant either, but that's how I interpret it. Those that buy BTC with fiat and sell BTC for fiat have to report the fiat gains as capital gains and can report the fiat losses as capital losses. Similar to the way gains and losses are reported on shares of stock. Once sold, a gain or loss is realized and you report this to the IRS when filing your income taxes. Title: Re: Implication of the IRS ruling on trading gain / loss Post by: bitcointaxes on March 26, 2014, 04:04:34 PM Gains / losses should be treated as capital gains? In other words, https://bitcointaxes.info calculates things correctly? Nothing really changed as far as capital gains goes, with the exception of you absolutely do have to record every purchase you make, so you can calculate any potential gains. Mining was clarified. Till now some people were treating it as manufactured stock, and so only realized income when sold. Not the case now. It's income the day it was mined. And any increase in value thereafter is capital gains. Title: Re: Implication of the IRS ruling on trading gain / loss Post by: Nagle on March 26, 2014, 06:20:28 PM Mining was clarified. Till now some people were treating it as manufactured stock, and so only realized income when sold. Not the case now. It's income the day it was mined. And any increase in value thereafter is capital gains. Right. That's the tax treatment gold gets. No surprise here.Title: Re: Implication of the IRS ruling on trading gain / loss Post by: Nagle on March 26, 2014, 06:30:15 PM Gains / losses should be treated as capital gains? In other words, https://bitcointaxes.info calculates things correctly? Nothing really changed as far as capital gains goes, with the exception of you absolutely do have to record every purchase you make, so you can calculate any potential gains. Mining was clarified. Till now some people were treating it as manufactured stock, and so only realized income when sold. Not the case now. It's income the day it was mined. And any increase in value thereafter is capital gains. |