3 ms·

Capital gains are capital gains. It doesn't matter how you made it.

• therealmarv 9y ago
  also depends on your country. In some countries bitcoin are entirely illegal, some have no rules at all (that means grey area and also no taxation) and some consider it as capital gains which needs to be taxed.
  • tathougies 9y ago
    It was never a gray area in the United States. Anything you can own is an asset and you owe taxes against it. This is true of things you buy as well. If you buy two rare Yu-Gi-Oh cards, and the value appreciates, and you sell them for a higher price, you owe tax on the profit. The same is true for bitcoin. You also can't get around this by simply bartering your assets. Once the asset leaves your hand or control -- be it bitcoins or Yu-Gi-Oh cards -- you owe tax on the difference in the price you paid (valued in USD) and the price it was worth at barter time. It is your responsibility to fairly make this valuation. This is not rocket science... the IRS website and the published tax codes explain this in great depth.