Well Alex asked and the rules are sensible if hard to enforce. As usual this isn’t tax advice. Just clips from the network. As your accountant 🙏
- If you buy and sell you declare this as short and long term gains.
- If you buy something with a Bitcoin even for $1 that’s a taxable event as there’s a gain or loss from the time you bought you coin.
- If you mine then when you create a coin then that’s income. The cost is deductible but if you are doing a lot you need to make it a real business to claim it. As a hobby it’s hard as it falls into the standard deduction