Re: Bitcoin - What exactly is the big deal?
Wonder how much longer the gravy train will last when it comes to taxation on Bitcoins? According the WSJ it might not be much longer
Mr. Marian says that he and many other specialists are "stumped" as to how the IRS will rule on bitcoin. He says his own sense is that it's a commodity similar to gold, because there's a finite supply and it's a store of value. He adds that some bitcoin transactions may be akin to barter—which has its own tricky tax rules.
In the absence of guidance, advisers are telling clients that bitcoin income, gains and losses should be declared to the IRS.
"If you take a reasonable position, they probably will accept it," says Jonathan Horn, a certified public accountant in New York. He plans to advise his clients to file foreign account disclosures if they meet certain thresholds and hold bitcoin through an entity that isn't located in the U.S.
Taxpayers who have bitcoin and flout the tax rules, Mr. Horn warns, "are opening themselves to penalties, interest and possible fraud prosecution."
- SeerSGB -