As a wise man once said, there is no escaping taxes and death once you are born. When Bitcoin was introduced, however, there was a glimmer of hope, most of us thought that we might just be able to escape taxes. Unfortunately, it was short lived, as the IRS decided to impose taxes on virtual currency holdings. Now that Bitcoin is considered as an official asset by various government agencies in the United States, one can do nothing but pay the toll.
How do we know what is taxable and what is not? Well, for that we have a few experts who can help us understand, but it will be easier if you are involved with cryptocurrency and reside in the United States. Laura Shin is one such good Samaritan who has explained how to deal with digital currency and the IRS when it comes to taxes. Her article in Forbes clearly explains about various different sources of bitcoin/digital currency and how to account for it. To begin with, all digital currency holdings are to be treated the same way one treats his/her capital assets like stocks and bonds. Internal Revenue Services in its Read more ... source: NewsBTC USA