Bitcoin and cryptocurrency Tax Accounting

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If you have bitcoins the rules are pretty strict although I’ve no idea how they enforce it

  1. If you buy and sell they are like any other assets so short term and long term gains
  2. Since cryptocurrency is property rather than a financial asset. Every time you buy something there is a taxable event.
  3. If you are mining the day you create your coin, you have created income. Obviously there was cost to create it. So if it’s a separate entity you can deduct that. But it’s a hobby probably not it’s lumped into the standard deduction

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