March 25, 2014, 2:36 p.m. EDT IRS defines bitcoin as property, not currency By Sital S. Patel NEW YORK (MarketWatch) -- Bitcoin and other virtual currencies will be treated like property and not currency for tax purposes, said the Internal Revenue Service on Tuesday. The new rules could potentially give investors a boost for tax purposes but the IRS is also imposing specific record-keeping and reporting standards to the virtual currencies. The announcement said the bitcoin would be treated much like stock or other intangible property and any gains on the investments would be treated like capital gains and be subject to potentially lower tax rates. If a taxpayer receives virtual currency as a payment for goods and services, they must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received, said the release.
Posted on: Tue, 25 Mar 2014 20:00:52 +0000
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