Quote from: don giovanni on April 05, 2014, 04:22:41 PM

Quote from: LostDutchman on April 04, 2014, 03:56:25 PM

When calculating your taxes, don't forget the roughly 13% self employment tax which the IRS also says is due............................

My $.02.

Wink

For capital gains?

I encourage all who reas this thread to also very closely read the most recnet IRS ruling, posted here:

http://www.irs.gov/pub/irs-drop/n-14-21.pdf?utm_source=3.31.2014+Tax+Alert&utm_campaign=3.31.14+Tax+Alert&utm_medium=email

Regarding self employmjent tax for miners; from the ruling:

"Q-8: Does a taxpayer who mines virt
ual currency (for example, uses computer
resources to validate Bitcoin transactions
and maintain the public Bitcoin
transaction ledger) realize gross income
upon receipt of the virtual currency
resulting from those activities?

A-8:
Yes, when a taxpayer successfully mines
virtual currency, the fair market value
of the virtual currency as of
the date of receipt is includible in gross income. See
Publication 525,
Taxable and Nontaxable Income
, for more information on taxable
income."

A veritable minefield of problems for all!

My $.02.

Wink