Rich's Tongfamily (Richtong.net add-on)

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