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What does the IRS think about bitcoins? What are the tax implications of bitcoins?   can you...

What does the IRS think about bitcoins? What are the tax implications of bitcoins?  

can you help me with this question, please ?

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Answer #1

answer:-

The IRS said that bitcoin and similar convertible virtual currencies are properties for tax purposes.

As with other types of property ,often by exchanging cash for the property ,then you own the property for a period of time.

implications:-

transactions using bitcoin must be reported in u.s. dollars .

tax payer will be required to determine the fair market value of bitcoin in u.s. dollars as of the date of payment or receipt.

bitcoin is listed on an exchange and the exchange rate is established by market supply and demand.

in a reasonable manner that bis consistently applied.

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