I've been trying to figure out how Bitcoin is taxed before I trade. Does anyone know?
It is really hard to tax on the bitcoin transactions and based on the trade transactions. The tax will be imposed only when you exchange it for your local currency. Then only it can be considered as income. Otherwise, bitcoin will not allow you to spend it for a tangible things. Only when you exchange the money in to your local currency, it will allow you to spend and then only it can be considered as income. The tax can be imposed on that amount.