01.2015

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Articles

You or your client decide to jump into the exciting but volatile world of Bitcoin and virtual currencies. What are some of the most important tax-related implications of dealing in virtual currency, and what are the hidden reporting requirements associated with such transactions?

Virtual currency is a term used to describe several different mediums of exchange, from “convertible” virtual currencies like Bitcoin and prepaid digital credits that have equivalent values in regular currency and can be converted into real currency to non-convertible currencies like airline miles or in-game tokens and credits used to “pay” for goods or services. This article focuses on convertible virtual currencies, and in particular “decentralized” convertible virtual currencies, like Bitcoin, which are tracked using a decentralized ledger. Click here to continue reading.