Quote from: frozenkai on April 26, 2013, 02:29:38 AM

Hello,
The new taxes on bitcoins are confusing me.
I live in the US and I mine bitcoins.
I am 13 years old. (If that helps)
Do the taxes follow normal US tax rates?
EDIT: Is there anyway to bypass taxes? Tongue

If you are talking about gains (you bought at $20, now its $135 - your gain is $115), then not legally. For my own taxes, I consider Bitcoins to be property. If you sell or exchange that property, whether for other goods or currencies, you have to pay a capital gains tax if you have gains. This is the case for nearly all property in the U.S, except for a few exceptions that are defined in the law, like Collectibles, which have special tax rates. I have not seen any evidence (like a law or tax regulation) that Bitcoins are anything other than regular property.

There are some who believe that if your intent was to use Bitcoin as a currency, then any gains you made should not be taxed. I have not seen any evidence to support these claims.

By the way, you said "new" taxes. There are no new taxes as far as I know.

That said, I am not a tax expert so you should do your own research and draw your own conclusions.

EDIT:
I'm sorry. You said you are a miner and I didn't notice that. That is a different story.
My best understanding would be that if you have no expenses to deduct, then you consider it property acquired for $0 and report gains accordingly.
If you want to deduct expenses, report the bitcoins as income using market value when you mine them minus expenses.
Later, report capital gains when you exchange or sell them with the cost basis being the market value when you mined them.

Again, I am not a tax expert so you should do your own research and draw your own conclusions.