since Bitcoin isn’t a generally accepts legal tendency yet, and it’s virtual, do Bitcoin traders pay tax?
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since Bitcoin isn’t a generally accepts legal tendency yet, and it’s virtual, do Bitcoin traders pay tax?
Taxes on gains made on trading will depend on the tax laws applicable to you. When I say tax laws applicable to you, it has a specific meaning. It can be the laws of the country of which you are tax resident of, the country you are currently residing in. In addition to this, the taxation laws applicable to the country in which you make a gain will also impact the tax cost on the gains; the country in which the exchange is located, or where the buyer is located.
Generally speaking the IRS treats crypto currency as any other capital asset and look to you to report long-term and short-term capital gains on any transactions involving the crypto currency I have found the website bitcoin.Tax as being a good way to track and report your activity