What if I convert from one virtual currency to another, is there another tax included in the conversion?
That is an interesting case. I'm not sure? I would think that you could argue that you have not realized any gain yet. You, me, and the IRS are going to need years to figure all this out.
The good news is that capitol gains tax is a lot less than the tax on the money you worked your ass off to get. Capitol gains are a rich persons tax, and as such is low.
NOTE: You can also claim a loss if the price drops below what you paid and you "cash out".
