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Do you use the USD<->Chicken exchange rate at the time of barter, or do you use the USD<->Chicken exchange rate at the time that you actually perform that conve
by jlgreco 13y ago
Do you use the USD<->Chicken exchange rate at the time of barter, or do you use the USD<->Chicken exchange rate at the time that you actually perform that conversion?
I think the rules for commodities and currencies are likely different. Regardless, bitcoin is clearly one of those two and you don't get to avoid the IRS by only dealing in commodities.
- gamblor956 13y agoSince there is no authority one way or the other, you generally get to pick. As long as you are consistent (i.e., you always treat it as a commodity/asset or always treat it as a currency), the IRS will generally accept your choice until they or the legislature issues affirmative guidance compelling a particular choice. (Note: this is known as a "method of accounting" in tax parlance.)