Quote from: bgibso01 on April 12, 2015, 11:24:17 PM

Quote from: plasma1010 on April 12, 2015, 09:48:19 PM

Quote from: bgibso01 on April 12, 2015, 09:01:21 PM

IRS considers bitcoin property, so yes you will have capital gains. If you held them for 1 year + 1day or more they are long-term capital gains and get preferential treatment. As to your basis in them, under the regs you are suppose to use the amount paid for them, or if mined the value you reported as income at the time they were mined.

Hope that helps.

I have invested $500 in a Bitcoin share, so I have to report $500 to the IRS ? Is the $500 all I have to report regardless of the gains ? What if there are loses ? Do you know what forms I file ? Any idea if registering an investment business would lower my taxable amount ?

Sorry for so many questions, I guess I'll just contact the local IRS office.

Depending on the length of time you owned it, would determine if it's a short-term or long-term classification. You will report it on Schedule D of your individual tax return unless you are set up as a company.

So as I understand, Long-term classification was the Year + 1 day you were talking about, which is a better investment bracket ?

How would registering a business affect my investmented taxable amount compared to individual ? Is it a reduction ?

Something else that confuses me, is simply byuing bitcoins through a wallet like Coinbase or Circle from my bank account, holding until the price rises, then selling and making profit considered a capital gain / loss ?

I'll look into Schedule D.