The IRS Just Made A Crucial Ruling About Bitcoin :heh:

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88m3

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The IRS has ruled Bitcoin should be treated as property, not as currency, for tax purposes.
The agency says anyone who holds the currency will have to calculate its value from the date it was received to determine whether a gain or loss was realized, and report the result.

If you've done any Bitcoin mining, the fair market value of the virtual currency as of the date of receipt is includible in gross income.

If you pay anyone in Bitcoin, you must file a W-2.


Read more: http://www.businessinsider.com/irs-...ot-currency-full-release-2014-3#ixzz2x11j08Ec



And here is an additional set of bulleted implications:

  • Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
  • Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
  • The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
  • A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.

Read more: http://www.businessinsider.com/irs-...ot-currency-full-release-2014-3#ixzz2x11NZGmr


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:heh:
 
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Brown_Pride said:
...so can a company just up and start paying people in bitcoin?
Click to expand...
Yes but they will have to pay income taxes on any gains they see from its appreciation when they convert the bitcoins back to dollars.

Thinking about it, not a bad tradeoff. Thinking more about it, seems like they are giving the green light to money laundering. It's not like the stock market... they don't know what your initial holdings are, nor do they know what transactions you are making behind the wall. So whatever you report is kind of completely arbitrary
 
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