Quote from: biodieselchris on January 16, 2014, 06:27:43 PM

Well, after reading through all of this I'm going to throw out there that I'm going with capital gains (long term in my case) for 2013. The IRS is still "researching cryptocurrencies" so until they provide guidance I'm taking the 'report and be consistent' approach. For me personally the cap gains is essentially tax free because I had losses in a start-up I invested in, so it's going to net to below 0, and had I gone with the bitcoin-as-a-currency classification (income) I would owe a high tax rate and not capture the cap gains netting benefit. If the IRS doesn't like it they can provide guidance or re-calculate it for me I guess.

steverabincpa what do you think?

Chris, I can't specifically bless tax returns or strategies I don't look at in specific detail, but what your paragraph sounds generally reasonable. Among the other things I look at when advising clients include: operating loss carryforwards, eligibility for research credit, use of retirement plans (SEP IRA etc.), full use of self employment business deductions, use of rental income, use of living trusts, interfamily tax strategies, and charitable gifting of appreciated assets.

Here is my circular 230 disclaimer. This post is intended to provide generalized tax and valuation information that is only appropriate in certain situations. It is believed accurate at this time, but these rules, alas, are constantly changing. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding tax penalties that may be imposed on any taxpayer. These contents should not be acted upon without specific professional guidance. Our liability, under any circumstances, is limited to the amount paid for our services. Please contact us if you have questions.