Bitcoin earnings on bets. Earning sites
IRS announces bitcoins to be treated as property Some taxpayers needed to quickly change their returns last year when bitcoin earnings on bets IRS made a late tax season change, announcing bitcoins were to be treated as property, rather than currency.
This year, however, owners of Bitcoin are better prepared for their filing requirements. Bitcoin exchanges and other programs, such as LibraTax, made it much easier to track individual transactions to determine when a taxable event took place.
What is Considered a Taxable Event? Since Bitcoin is considered property like a stockevery time you purchase something or sell a portion of your holdings, a taxable event has occurred.
What should you do? Your basis in the original 0.
At the end of the year, you would simply total the result of your transactions in order to determine your taxable gain or allowable loss. Bitcoin is subject to the same taxable treatment as stocks.
Bitcoin and Online Gambling Bitcoin is becoming popular with start-up online gambling websites.
These sites function similarly to other online gambling websites, except the only currency accepted is Bitcoin. Tracking your play on these sites is a little more time-consuming than if you were tracking your play on Pokerstars, but it is still manageable and imperative.
You decide to register for an online poker tournament with a 1 bitcoin buy-in and you win the event, hauling in 10 bitcoin.
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