First, tax regulations differ for each country around the world, so how Bitcoin is taxed in one country may not be the same elsewhere. Please look into the tax laws of your own country to find the specific details. What is pretty much global, is that buying Bitcoin or any other crypto-currency is not in itself taxable. However, you are likely to be taxed when you sell or even spend those coins and make a profit. How much depends on the amount of gains, how long you owned the coins and if and how your country taxes capital gains.

You may find there aren't too many bitcoin knowledgeable accountants around just yet, so we recommend talking to Tyson Cross, a tax attorney and member of the Bitcoin Foundation. There is more information on his website,www.bitcointaxsolutions.com, and he is likely able to answer any specific questions you have, as well as offering tax planning and preparation services.