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.
You don't have to report anything if all you did is buy Bitcoin.
But spending or selling them might incur capital gains. This is the difference between the amount you sold and what you bought.
You should also include any losses, since it is in your best interest, as they can offset any other gains you might have (e.g. stocks) or income taxes.
See here:
https://bitcoin.tax/blog/filing-your-bitcoin-taxes/