Submitted By: someone
Answered: February 25, 2018 9:00 pm

How do I treat bitcoin gains?

The IRS ruled that bitcoins and other cryptocurrencies are property, not currency. As such, you determine gain or loss in the same was as any other type of property. Compare what you paid for the bitcoins and what you received on the sale (making adjustments for commissions, etc.).

Tax Glossary

Involuntary conversion

Forced disposition of property due to condemnation, theft, or casualty. Tax on gain from involuntary conversions may be deferred if replacement property is purchased.

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