Post
Topic
Board Legal
Re: Time to start thinking about taxes
by
steverabincpa
on 02/01/2014, 02:13:32 UTC
For US Tax purposes, would it not be appropriate to divide mining income between the bitcoin 'reward' and the 'transaction fee' associated with the accepted block.  The former involves a very unique economic transaction that we all feel is open for interpretation.  The transaction fee we receive is another matter.  Those generating a transaction either intentionally or there mining software allocates the fee to prompt inclusion in the block when it is constructed.  

thougths?
How is the 'reward' different from lottery winnings or a treasure trove (both taxable eg: Cesarini v. United States, 296 F.Supp. 3 (N.D. Ohio 1969)?  In particular, if a US based lottery pool were involved, with the pool as a counterparty, how would the counterparty record (and report) the transaction?