Now, what I understand so far is that profit made by purchasing bitcoins low and selling them high qualifies as capital gains tax, which in normal situations is identical the income tax rate as indicated by the individual's income tax bracket.
So how is this added up? If I make a thousand trades and come out X amount of dollars ahead, can I just use the final amount for reporting? And what records should I be keeping?
Not that I'm bound to make any money at this. I'm at a loss so far, but I'm keenly interested in complying with tax laws.