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<p>[QUOTE=&quot;yakpoo, post: 7004913, member: 18157&quot;]Bitcoin (all cryptocurrencies) make me nervous from a tax (bookkeeping) perspective. The way I read it, each purchase you make with Bitcoin is a taxable event. Anyone spending cryptocurrency must report a gain/loss on their 1040. I suspect that crypto losses can only be used to offset crypto gains. This is a juicy, low-hanging apple for IRS auditors. </p><p><br /></p><p>&quot;<b><font size="4">Bitcoins held as capital assets are taxed as property</font></b></p><p>If Bitcoin is held as a capital asset, you must treat them as property for tax purposes. General tax principles applicable to property transactions apply. Like stocks or bonds, any gain or loss from the sale or exchange of the asset is taxed as a capital gain or loss. <i><b>Otherwise, the investor realizes ordinary gain or loss on an exchange</b></i>.&quot;</p><p><br /></p><p><a href="https://turbotax.intuit.com/tax-tips/tax-payments/tax-tips-for-bitcoin-and-virtual-currency/L1ZOgU00q" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://turbotax.intuit.com/tax-tips/tax-payments/tax-tips-for-bitcoin-and-virtual-currency/L1ZOgU00q" rel="nofollow">https://turbotax.intuit.com/tax-tips/tax-payments/tax-tips-for-bitcoin-and-virtual-currency/L1ZOgU00q</a></p><p><br /></p><p>&quot;Regardless of how you interacted with any cryptocurrencies last year, you’re expected to include the information on your 2020 tax return. And for those who had income from virtual currency — whether due to selling at a profit or getting paid crypto for work performed — failure to report it may haunt you.&quot;</p><p><br /></p><p><a href="https://www.cnbc.com/2021/02/24/failure-to-report-crypto-on-tax-returns-can-lead-to-trouble-with-irs.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.cnbc.com/2021/02/24/failure-to-report-crypto-on-tax-returns-can-lead-to-trouble-with-irs.html" rel="nofollow">https://www.cnbc.com/2021/02/24/failure-to-report-crypto-on-tax-returns-can-lead-to-trouble-with-irs.html</a>[/QUOTE]</p><p><br /></p>

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