Same in most parts of europe.
BTC are not money legally
So...
...I operate a mining farm, all expenses are expenses Nice. Recudeds my tax income.
...all sold BTC are income. Good. I need some - dont wan to run at a loss
...all KEPT btc are inventory - and unless I get really large otherwise, this is not reported, as I report profit/loss, not goods are hand
So, I sell some, to pay and expand, and keep some fo which I dont pay income tax until I sell them and get "real" currencyl.
Real and not currency totally in the definition of the law here
BTC are not money legally
So......I operate a mining farm, all expenses are expenses
Nice. Recudeds my tax income....all sold BTC are income. Good. I need some - dont wan to run at a loss
...all KEPT btc are inventory - and unless I get really large otherwise, this is not reported, as I report profit/loss, not goods are hand
So, I sell some, to pay and expand, and keep some fo which I dont pay income tax until I sell them and get "real" currencyl.
Real and not currency totally in the definition of the law here
yes. if you keep them they're not taxable, but if you sell them for the currency of your country, they are. turbotax didn't make this even slightly clear with their little infographic.
the real question is how is income from selling them taxed? long- or short-term capital gain? which is why i think the client needs to be able to send specific coins - so those bitcoin which were mined more recently, and have a higher cost of production [for miners], can be exchanged.
if Bitcoin are taxed as hobby income (in the US - a pleasant and peculiar tax designation...), what can be offset?
in any case, it's remarkable to see an entity like turbotax deal with Bitcoin - it'll do us good. i doubt the information they're putting out about it will remain unchanged, however.