Can someone please point me to the LAW that says cryptocoins transactions are taxable in the first place?
NOT IRS code. The IRS is simply a foreign trust based in puerto rico. They have no law making powers.
NOT IRS code. The IRS is simply a foreign trust based in puerto rico. They have no law making powers.
Certainly: http://www.law.cornell.edu/uscode/text/26/1001
Quote
(a) Computation of gain or loss
The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized.
(b) Amount realized
The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received.
The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized.
(b) Amount realized
The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received.