Thanks for explaining NikSam. Your work here is top echelon.
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Quote:
"General tax principles that apply to property transactions apply to transactions using virtual currency," the IRS said in a statement, meaning that bitcoins would be taxed as ordinary income or as assets subject to capital gains taxes, depending on the circumstance."
More:Quote:
"NOT LEGAL TENDER
The IRS also said that virtual currency is not to be treated as legal-tender currency to determine if a transaction causes a foreign currency gain or loss under U.S. tax law.
For other forms of gains or losses involving virtual currency, the IRS explained how to determine the U.S. dollar value of virtual currency and said taxable gains or losses can be incurred in related property transactions.
"The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer," the IRS said.
If a taxpayer holds virtual currency as capital - like stocks or bonds or other investment property - gains or losses are realized as capital gains or losses, the agency said.
However, when virtual currency is held as inventory or other property mainly for sale to customers in a trade or business, ordinary gains or losses are generally incurred, the IRS said.
Capital gains and losses are taxable and deductible at different rates and amounts than ordinary gains and losses."
Bitcoins are property, not currency, IRS says regarding taxes | Reuters
You mean I can't earn 2% per day with a secret new Bitcoin strategy?
http://www.sec.gov/investor/alerts/i...currencies.pdf
Investor Alert: Bitcoin and Other Virtual Currency-Related Investments | Investor.gov
SEC: Bitcoin Believers Are Ripe for Scammers - Businessweek
Jed McCaleb, the creator of Ripple Labs XPR virtual currency and the original creator of Mt.Gox failed bitcoin exchange
and the creator of some super secret project to hit the world
announced that he is getting rid of his stash of XPR's (9 billion)
https://xrptalk.org/topic/2629-selling-my-xrp/
I have a feeling that these "investors" are not going to see most of their money ever again.
Angry Bitcoin investors demand answers at Tokyo creditors' meet
Alert on Coinbase BTC exchanger from the California Department of Business Oversight:
URL: California Department of Business OversightQuote:
Originally Posted by dbo.ca.gov
Attachment 9261
Patrick's article on HongKong BTC exchange MyCoin which gone missing together with client's funds,
believed to be a $386M ponzi scheme:
Purportedly Based In Hong Kong And Offering Equity Positions, ‘MyCoin’ Bitcoin Exchange Reportedly Goes Missing; Hundreds Of Millions Of Dollars May Be At Stake
Arghh, NYSE launched the bitcoin index: NYSE creates a new bitcoin index
Attachment 10958