So, about 2 months ago I went to H&R Block to get my taxes prepared. I explained to the lady, who apparently was very experienced and had worked there for many years, about Bitcoin. At the time, she told me that she was unsure of how to treat Bitcoin with regards to taxation -- is it a business? Is it a hobby? Is it an investment?
Well, 2 days ago I finally got my answer. After asking the 5 longest-working members at that particular H&R Block location AND after calling the IRS, the lady said that Bitcoin is a hobby. She knows that I buy precious metals with Bitcoin, knows that I have money in accounts all over the globe, and knows that I have conducted business deals and have provided services specifically dealing in Bitcoin. I even showed her an old TradeHill check of some of my profits.
Long story short, I don't need to file any taxes this year
But then again, I was kinda hoping to write off some of my computer equipment as a business expense.
Well, 2 days ago I finally got my answer. After asking the 5 longest-working members at that particular H&R Block location AND after calling the IRS, the lady said that Bitcoin is a hobby. She knows that I buy precious metals with Bitcoin, knows that I have money in accounts all over the globe, and knows that I have conducted business deals and have provided services specifically dealing in Bitcoin. I even showed her an old TradeHill check of some of my profits.
Long story short, I don't need to file any taxes this year
But then again, I was kinda hoping to write off some of my computer equipment as a business expense.