In all likelihood, they'll use the date of sale/purchase to set a exchange rate. This is a recordkeeping and tax form nightmare, especially if there is a lot o

In all likelihood, they'll use the date of sale/purchase to set a exchange rate. This is a recordkeeping and tax form nightmare, especially if there is a lot of trading. It may be possible to report the net gains over the year for frequent trading similar to security trading, but the details are somewhat foggy at the moment. The theory is not though, and the IRS has had the position for some time that gains in bitcoin imply taxable capital gains.