You Must Report Bitcoin To The IRS (Ron Paul 2016!)

Illustration for article titled You Must Report Bitcoin To The IRS (Ron Paul 2016!)

Three weeks out from Tax Day and the IRS has just determined that Bitcoin is property, not currency.

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You know what else is property and not currency? Disney Bucks, Chuck E. Cheese tokens, Simoleans, Lindens, tulips, Confederate Dollars, Skee-Ball tickets.

According to today's announcement, if you mine Bitcoin, you generate income and need to report Bitcoin gains.

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If you mine 1 Bitcoin on Monday and the going rate for Bitcoin is $100, you realized $100 of income and must report it. If you sell that Bitcoin on Tuesday for $125, you realized $25 of capital gains and must report it.

So now you can add complicated calculations and federal income tax reporting requirements to the benefits of Bitcoin. Just in case the excitement of your "investment" in a virtual "currency" which may or may not be stolen from you by the stoners who own the "exchange" on which your Bitcoin resides was not enough "benefit."

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