Bitcoin and cryptocurrency tax accounting

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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 🙏

  1. If you buy and sell you declare this as short and long term gains.
  2. 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.
  3. 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

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