Declaring a loss and getting a tax deduction is relevant only for capital asset trades or for-profit transactions. Generally speaking, though, you can deduct business expenses that are ordinary xrp expected value in 2019 bitcoin life time graph necessary. Currencies, Commodities, Tokens. Your Money. Long-term gains can be realized at any point in any tax year via the above methods by selling, trading, or using cryptocurrency. That bitcoin value predictions 2020 why is there an ethereum surge it's up to you to hunt down your cost basis. If you think you maybe might owe taxes from past years, file an amended return and get right with the IRS before they come looking for you. So, what does that mean for traders? All Rights Reserved. Tax Bracket Calculator Find your tax bracket to make better financial decisions. CNBC Newsletters. This is especially true if you think you owe back taxeswhich you should definitely pay or risk paying potential massive fines and serving potential prison time. Make sure to let your accountant know you are dealing with cryptocurrency. Nearly every transaction is both taxable and potentially a wash sale. By using Investopedia, you accept. Personal Purchases. The act changes the way capital gains taxes are assessed slightly. Skip Navigation. What About Transactions? Mined Bitcoin must be valued as income at a fair market value the day it is mined. Data Import: Estimates based on bitpay visa review how to get api secret key for coinbase business expenses calculated at the self-employment tax income rate
You must make a good faith effort to claim your crypto and pay your taxes no matter which route you take. Email will not be published required. Sign In. Share to facebook Share to twitter Share to linkedin. This means anything purchased using a digital currency is liable to be taxed as a capital gain whether short or long term depending on how long the asset was held. When answering questions, write like you speak. Long-term gains can be realized at any point in any tax year via the above methods by selling, trading, or using cryptocurrency. There are more than 1, known virtual currencies. The increasing presence of Bitcoin in finance is also evidenced in Bitcoin futures contracts , which are traded on major institutional exchanges like the Chicago Mercantile Exchange and the Chicago Board Options Exchange. Don't assume you can swap cryptocurrency free of taxes: It could make the difference between paying the correct amount of taxes or shelling out a fine. For either for those consult your attorney or accountant. TurboTax Help and Support: For maximum privacy, transactions can be converted to QR codes to be scanned directly into the device without being broadcast. Are you a bit confused about how it works? But if all you have done is purchase cryptocurrencies with fiat currency i. If you are an employer paying with Bitcoin, you must report employee earnings to the IRS on W-2 forms. Everything else on this page is me trying to convey how everything works within the current system. You have to make sure you are reporting on employees paid in crypto and contractors paid in crypto as well.
Printing or electronically filing your return reflects your satisfaction with TurboTax Online, at which time you will be required to pay or register for the product. Be clear and state the answer kucoin exchange youtube purchasing ripple xrp up. On-screen help is available on a desktop, laptop or the TurboTax mobile app. It can import transactions either from blockchain. Document all your buy and sell dates and amounts in a spreadsheet. Partner Links. If you sell a trade lot that you have held at least a year, you may only have to report long term capital gains which are taxed at a lower rate. Pay for additional TurboTax services out of your federal refund: Rules for businesses are generally complicated and can require reporting and filing throughout the year. Large Gains, Lump Sum Distributions.
Exchanging Cryptocurrencies. Virtual Currency. In terms of the future of cryptocurrency taxes, there is a bipartisan bill in the works called the Cryptocurrency Tax Fairness Act. Sign In. The IRS issues more than 9 out of 10 refunds in less than 21 days. Is all of this as clear as mud? The IRS also clarified that mining is treated as immediate income at the fair or market value of those mined coins on their date of receipt. The above interpretation is based on the assumption bitcoins are treated as a store of value such as gold, or other such commodity. TurboTax specialists are available to provide general customer help and support using the TurboTax product. There are credit cards tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. Navigation menu Personal tools Create account Log in. LibraTax launched in and will automatically import your transactions from Coinbase, Blockchain and other exchanges. In order to calculate the taxes you owe, you need your cost basis — that is, the original value of the asset for tax purposes — and this information can be hard to find. By using Investopedia, you accept our.
More from Your Money, Your Future: In order to calculate the taxes you owe, you need your cost basis — that is, the original value of the asset for tax purposes — and this information can be hard to. Covered under the TurboTax accurate calculations and maximum refund guarantees. Make sure to be consistent in how you track dollar values. For maximum privacy, transactions can be converted to QR codes withdraw bitcoin from gdax two factor code how to get large amounts of bitcoins be scanned directly into the device without being broadcast. The basis is the amount you paid to purchase the property, including any fees that you paid. The IRS views any transaction with cryptocurrency as two separate transactions: Depending on how you received or disposed of your cryptocurrency, you may face different taxes. There are credit cards tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. News Tips Got a confidential news tip? These are the forms used to report your capital gains and losses from investment property. Mining coins adds a layer of complexity in calculating cost basis. Based on aggregated sales data for all tax year TurboTax products. As you can see, keeping good records of cryptocurrency transactions is essential. The future of crypto taxes In terms of the future of cryptocurrency taxes, there is a bipartisan bill in the works called the Cryptocurrency Tax Fairness Act. We hate spam as much as you. If you overpay or underpay, you can correct this at bitcoin hardfork naval buy bitcoin stock shares end of the year. VIDEO Attach files. The notice clarified the position that the IRS treats digital currencies as capital assets and are therefore subject to capital gains taxes. So principles that apply to property transactions, like buying or selling a home, also apply to buying, selling, and using virtual currency like Bitcoin cash bitcoin without exchange what is the future of bitcoin 2019 other cryptocurrencies. Here are five guidelines:.
See crypto tax-loss harvesting. If you overpaid, made millions on bitcoin where to buy bitcoin cash mining contract sure to read up on: But with Bitcoin, it all seems so different. Special discount offers may not be valid for mobile in-app purchases. Traders have made tax-free "like-kind" exchanges of virtual currency in the past. Investing in Bitcoin is just like investing in any other capital asset, like a home. The basis cost plus fees of any Bitcoin you buy The purchase date If sold, the date you sold it The price you sold it for As you can see, keeping good records of cryptocurrency transactions is essential. Bitcoin farm earn bitcoin mining bitcoin with gpu 2019 Navigation. If you have swapped one virtual currency for another, you still need to report the grayscale ethereum classic bitcoin roulette bot exchange to the IRS and track the basis. You must convert the Bitcoin value to U. So, what does that mean for traders? Read More. That means it's up to you to hunt down your cost basis. Keep it conversational. In the event your return is reviewed by a tax expert and requires a significant level of tax advice or actual preparation, the tax expert may be required to sign your return as the preparer at which point they will assume primary responsibility for the preparation of your return payment by the federal refund not available when tax expert signs your return. One is mining coins. Trading cryptocurrency to a fiat currency like the dollar is a taxable event.
The increasing presence of Bitcoin in finance is also evidenced in Bitcoin futures contracts , which are traded on major institutional exchanges like the Chicago Mercantile Exchange and the Chicago Board Options Exchange. Yes No. In the event your return is reviewed by a tax expert and requires a significant level of tax advice or actual preparation, the tax expert may be required to sign your return as the preparer at which point they will assume primary responsibility for the preparation of your return payment by the federal refund not available when tax expert signs your return. You now have a realized long-term capital gain , which is now taxable. If you pay an IRS or state penalty or interest because of an error that a TurboTax CPA, EA, or Tax Attorney made while providing topic-specific tax advice, a section review, or acting as a signed preparer for your return, we'll pay you the penalty and interest. The recipient of the gift inherits the cost basis. While the IRS Notice does confirm that Bitcoin is taxed as property rather than a currency, there are still some unresolved issues. Cryptocurrency offers a couple of other interesting scenarios to consider from a tax perspective. Most Popular: Don't assume that the IRS will continue to allow this. At that time, the taxpayer would be required to estimate the value of the Bitcoins in dollars and record that amount. When people post very general questions, take a second to try to understand what they're really looking for. All Rights Reserved.
You may also know that if you're paid in cryptocurrency, you need to deduct taxes from it. September 13, at 4: Experian and FICO partner to help bump credit scores for millennials. The sale or exchange of a convertible virtual currency—including its use to pay for goods or services—has tax implications. At that time, the taxpayer would be required to estimate the value of the Bitcoins in dollars and record that amount. Governments have observed surges of black-market trading using Bitcoin in the past. See a professional for advice if you think this applies to you. Reducing your crypto tax bill Here are five strategies to ensure that you are properly paying cryptocurrency taxes or minimizing the amount of taxes that you will pay on cryptocurrencies. Literally bitcoins, and even digital currencies are so new, that there is little to no precedent for some aspects of bitcoin mining, from a tax perspective. Generally speaking, getting paid in cryptocurrency is like being paid in gold. If you need to hunt down the cost basis of some long-held stocks and your brokerage firm doesn't have that information, you could dig up historical prices and dividend payments to get a sense of your cost basis. Exchanges now impose anti-money laundering requirements on Bitcoin traders to avoid drawing the ire of regulators. This is the best case scenario. VIDEO 1: Tax treatment depends on how Bitcoins are held and used. The official IRS guidance and official IRS rules on capital gains and investment property are the most important things here. Why Should I Care? It could make the difference between paying the correct amount of taxes or shelling out a fine. Last in First out is important to use if you are holding crypto to try to realize long term capital gains.
Your Money. Buying video cards would be both of these, buying a big screen TV to watch while mining would be. For some users, Bitcoin is a way to avoid government intrusion and illegally evade paying taxes. Were you doing it as an employee? Like stocks or bonds, any gain or loss from the sale or exchange of the asset is taxed as a capital gain or loss. If you "sell" some Bitcoin at a profit that you purchased within the last year, you will have to report short term capital gains on your tax return and pay ordinary income tax rates. Selling the cryptocurrencies that one has mined instead of those that they bought previously with fiat is a different story. And when venture scanner bitcoin how to calculate the earnings from bitcoin exchange one coin for another, it triggers taxable events just like using cryptocurrency to buy goods. Break information down into a numbered or bulleted list and highlight the most important details in bold.
Section wash sale rules only mention securities, not intangible property. Any subsequent gains are taxed at long or short term capital gains tax rates. When you make enough capital gains, it is the same deal. When you get your check from your job, taxes are withheld. Exchanges can give you some notion of your cost basis, but what if someone paid you in cryptocurrency or if you mined your own coins? The following are not taxable events according to the IRS: If you bought or downloaded TurboTax from a retailer: You also owe self-employment taxes. There are way more considerations than there is time, next year make sure you are prepared well in advance. That said, not every rule that applies to stocks or real estate applies to crypto. Rules for businesses are generally complicated and can require reporting and filing throughout the year. I've been looking for a comprehensive guide to all-things-money and this has been so informative. Actual results will vary based on your tax situation. More in Tax Payments Video: If you are an employer paying with Bitcoin, you must report employee earnings to the IRS on W-2 forms. Answer 2 people found this helpful If you earn anything from your mining, you must include it as part of your gross income. Thus, you may want to keep your own record of every trade throughout the year noting the time of the trade, amounts in crypto, and dollar value. The worst thing a cryptocurrency investor could do is circle send to bitcoin address cant upload verification to coinbase what other method convert from how much is a share of bitcoin my transaction never get confirmed and now disappear bitcoin blockcha cryptocurrency to another if the investor has made a huge profit on the initial cryptocurrency. Thank you, thank you, thank you!
The following are not taxable events according to the IRS: If you sell a trade lot that you have held at least a year, you may only have to report long term capital gains which are taxed at a lower rate. Section wash sale rules only mention securities, not intangible property. Trading records can be imported from all major trading exchanges, including Coinbase, Circle, Bitstamp, and BTC-e, to produce a complete annual trading history. While the IRS Notice does confirm that Bitcoin is taxed as property rather than a currency, there are still some unresolved issues. Printing or electronically filing your return reflects your satisfaction with TurboTax Online, at which time you will be required to pay or register for the product. The basis cost plus fees of any Bitcoin you buy The purchase date If sold, the date you sold it The price you sold it for As you can see, keeping good records of cryptocurrency transactions is essential. But, to make the decision if your business is a hobby, the IRS looks at numerous factors, including the following: The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. When answering questions, write like you speak. Financial Legal. Everything else on this page is me trying to convey how everything works within the current system.
Again, this is the case even if Overstock accepts cryptocurrency directly. Mined Bitcoin must be valued as income at a fair market value the day it is mined. Get In Touch. Declaring a loss and getting a tax deduction is relevant only for capital asset trades or for-profit transactions. For instance, Coinbase, an exchange for cryptocurrencies, is doing some reporting, providing a Form K to some but not all customers. Just make sure to follow the rules presented by the IRS. Short-term day trading is not a sustainable long-term investment strategy. Sign up for free newsletters and get more CNBC delivered to your inbox. The U. And that can make things like thinking about Bitcoin and your taxes a bit daunting. You should therefore immediately put the estimated tax proceeds aside when you receive fork-based cryptocurrencies. Trying to hide your assets is tax evasion, a federal offensive.
The IRS answered some common questions about the tax treatment of Bitcoin transactions in its recent Notice Is all of this as clear as mud? Were you doing it as an employee? Trading cryptocurrency to cryptocurrency is a taxable event you have to calculate the fair market value in USD at the time of the trade; good luck with. Generally speaking, though, you can deduct business expenses that are ordinary and necessary. This is not legal advice nor accounting advice. The IRS classifies all cryptocurrencies as property. September 13, at 4: Sign in or Create an account. Virtual Currency Coinbase: If you "sell" some Bitcoin at a profit that you purchased within the last year, you will have to report short term capital gains on your tax where to buy bitcoin cash coinbase which exchange does coinbase use and pay ordinary income tax rates. Anytime, anywhere: Declaring a loss and getting a tax deduction is relevant only for capital asset trades or for-profit transactions. There are credit minergate app safe ethereum wallet safe tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. We pay taxes anytime we sell a cryptocurrency and make a profit. Is Crypto Mining at home with the bitcoin basics why hackers demand it and how it works sc btc bittrex of making profit considered self employment, a business, or as a hobby? Make sure to let your accountant know you are dealing with cryptocurrency.
Share to facebook Share to bitcoin hardfork naval buy bitcoin stock shares Share to linkedin. If you are an employer paying with Bitcoin, you must report employee earnings to the IRS on W-2 forms. The IRS answered some common questions about the tax treatment of Bitcoin transactions in its recent Notice The IRS also clarified that mining is treated as immediate income at the fair or market value of those mined coins on their date of receipt. If you use TurboTax Online or Mobile: Terms and conditions may vary and are subject to change without notice. There may be tax liabilities encountered when transacting with or trading in bitcoins. Intuit TurboTax. Here are five guidelines:. You must make a good faith effort to claim your crypto and pay your taxes no matter which route you. But, to make the decision if your business is a hobby, the IRS looks at numerous factors, including the following:.
You can use your records if you kept better records than the exchanges you used. Each purchase is considered a trade lot. Here is the bottom line on cryptocurrency and taxes in the U. Alternatively, if you're doing this work as an employee, then your employer needs to withhold the appropriate income taxes. If you are paid in cryptocurrency for your salary, the IRS calculates the value of your salary based on the fair market value of the cryptocurrency in US dollars at the time you received the cryptocurrency. Be encouraging and positive. The U. The first is capital asset. But, to make the decision if your business is a hobby, the IRS looks at numerous factors, including the following:. The basis is the amount you paid to purchase the property, including any fees that you paid. Partner Links. Generally speaking, getting paid in cryptocurrency is like being paid in gold. Select a file to attach: That depends on your situation.
A Summary of Cryptocurrency and Taxes in the U. Nearly every transaction is both taxable and potentially a wash sale. The IRS has likely already the path to buy bitcoin base hashrate for ethereum on the r5 240 working with many software companies in order to track those that do not declare cryptocurrency profits on their tax returns. Alternatively, if you're doing this work as an employee, then your employer needs to withhold the appropriate income taxes. Partner Links. Have you made a profit in this activity in the past, or can you expect to make one in the future? Be a good listener. But every time you use such a card it is a taxable event which must be tracked. This is a tricky question, in that bitcoins are really the first digital currency that was created in this manner and actually have a significant value in relation to other currencies. The long-term rate on assets held over days is about half the short-term rate. Add a comment. There is a fee for not making estimated quarterly payments when required, 1060 6gb monero nicehashminer settings monero hashrate 1080 if you underpay too much, there is a fee for that. This crypto tax filing page is updated for
Bitcoin miners must report receipt of the virtual currency as income Some people "mine" Bitcoin by using computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger. In addition, spending and income records can be imported from wallets and payment processors, such as the core wallets, Blockchain. Employers sending bitcoins as compensation would likely record all calculations in the functional currency e. TurboTax online and mobile pricing is based on your tax situation and varies by product. This post has been closed and is not open for comments or answers. About our TurboTax Product Experts: Exchanging cryptocurrencies exposes investors to taxes as well. But buying any Bitcoin within 30 days before or after selling Bitcoin for a loss may generate a wash sale and then the loss must be folded back into the purchase. The short-term rate is very similar to the ordinary income rate. It can make life simple to cash out before midnight on December 31 and start again next year as that would ensure all gains and losses are set in stone before the end of the tax year. PnL and tax contributions can then be exported and then used to prepare a tax return. Before you submit your tax return to the IRS, ask yourself: Personal Finance. Some employees are paid with Bitcoin, more than a few retailers accept Bitcoin as payment, and others hold the e-currency as a capital asset. Failure to pay your taxes involves potentially steep penalties and fees—not to mention endless letters from the IRS.
For instance, Coinbase, an exchange for cryptocurrencies, is doing some reporting, providing a Form K to some but not all customers. W-4 Withholding Calculator Adjust your W-4 for a bigger refund or paycheck. Keep it conversational. When selling mined Bitcoins, however, you would also be taxed on the increase between the value you recorded them at when you first received them, and the value you sold them for. Get every deduction you deserve. Remember, trading and using cryptocurrency are both taxable events where the taxable amount is calculated from the fair market value in U. Select a file to attach: Similar rules apply for cryptocurrency miners. Any subsequent gains are taxed at long or short term capital gains tax rates. My parents started their own firm du Don't assume you can swap cryptocurrency free of taxes: But every time you use such a card it is a taxable event which must be tracked. If you pay an IRS or state penalty or interest because of an error that a TurboTax CPA, EA, or Tax Attorney made while providing topic-specific tax advice, a section review, or acting as a signed preparer for your return, we'll pay you the penalty and interest. The act changes the way capital gains taxes are assessed slightly. Make it apparent that we really like helping them achieve positive outcomes. Estimate your tax refund and avoid any surprises. If you overpaid, make sure to read up on: We pay taxes anytime we sell a cryptocurrency and make a profit. There is a fee for not making estimated quarterly payments when required, and if you underpay too much, there is a fee for that too. Seek guidance from a professional before making rash moves.
They just want you to pay taxes on the gain. When people post very general questions, take a second to try to understand what they're really looking. PnL and tax contributions can then be exported and then used to prepare a tax return. While the value of Bitcoins themselves don't count towards cant verify coinmama iota usd bitfinex FBAR threshold [5]there is the possibility that requirement applies to cash held in non-US bitcoin exchanges or wallet services [6]. And when you exchange one coin for another, it triggers taxable events just like using cryptocurrency to buy goods. This crypto tax filing page is updated for Here are five guidelines: Views Read View source View history. The only official guidance on how the IRS views cryptocurrency taxes was published more than four years ago, which is lightyears ago when it comes to cryptocurrencies. The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. Virtual Currency How to Buy Bitcoin. As a general rule of thumb in terms of receiving cryptocurrency as a business or as a miner, one must account for the dollar value of the coin at the time they received stiglitz bitcoin current price of litecoin and then again at the time they coinbase desktop app usdt tether bittrex out of it or use it. You amd opteron 6276 monero mining hash rate best cryptocurrency cloud mining to be trading a good amount in both volume and USD values for this to work.
The tool can generate highly customizable transaction reports as well as a schedule D report with realized gains. You may cancel your subscription at any time from within the QuickBooks Self-Employed billing section. In many jurisdictions, you are still legally required to report that as income. For example, if you owned bitcoin and you received bitcoin cash as a result of the fork event, then ordinary taxes not long-term capital gains taxes must be paid on the value of the bitcoin cash that you received, as if it were converted into US dollars the day that you received it. Saved to your computer. You must convert the Bitcoin value to U. Additional bitcoin value past month can i get a bitcoin wallet on copay apply for e-filing state returns. But every time you use such a card it is a taxable event which must be tracked. Get every deduction you deserve TurboTax Deluxe searches more than tax deductions and credits so you get your maximum refund, guaranteed. Filing Taxes While Overseas.
That means it's up to you to hunt down your cost basis. There is a fee for not making estimated quarterly payments when required, and if you underpay too much, there is a fee for that too. Avoid jargon and technical terms when possible. Things get trickier when you have activity in multiple places, he said. TurboTax specialists are available to provide general customer help and support using the TurboTax product. Thank you, thank you, thank you! Login Advisor Login Newsletters. The basis is the amount you paid to purchase the property, including any fees that you paid. When people post very general questions, take a second to try to understand what they're really looking for. Declaring a loss and getting a tax deduction is relevant only for capital asset trades or for-profit transactions. Quicken import not available for TurboTax Business. Savings and price comparison based on anticipated price increase. Trading cryptocurrency to cryptocurrency is a taxable event you have to calculate the fair market value in USD at the time of the trade; good luck with that. You have to be trading a good amount in both volume and USD values for this to work.
For bitcoin and other cryptocurrency, the information you need includes: You have to be trading a good amount in both volume and USD values for this to work. To continue your participation in TurboTax AnswerXchange: To summarize the tax rules for cryptocurrency in the United States, cryptocurrency is an investment property, and you owe taxes when you sell, trade, or use it. The Tax Cuts and Jobs Act goes into effect for taxes. So be sure you keep incredibly detailed notes about when you buy, sell, or just use cryptocurrencies like Bitcoin. Pays for itself TurboTax Self-Employed: Alternatively, if you're doing this work as an employee, then your employer needs to withhold the appropriate income taxes. Retrieved from " https: But remember, if you are already in crypto, going to USD before the end of the year means that you realize gains and losses. The short-term rate is very similar to the ordinary income rate. Attach files. Cryptocurrency offers a couple of other interesting scenarios to consider from a tax perspective. Capital gains and losses are the profit or loss you can make on the property. All Rights Reserved. There are a number of crypto tax software solutions to be found online. If you use TurboTax Online or Mobile: Generally speaking, though, you can deduct business expenses that are ordinary and necessary. You could run into real problems if crypto goes to zero very unlikely or if you panic and sell low.
For example, you will report gross income, deduct expenses, and have a net taxable income on which you will be required to pay income tax, as well as possibly self employment tax depending on how your mining business is set up. Be a good listener. Adjust your W-4 for a bigger refund or paycheck. All Rights Reserved. Cryptocurrency offers a couple of other interesting scenarios to consider from a tax perspective. When selling mined Bitcoins, however, you would also be taxed on the increase between the value you recorded them at when you first received them, and the value you sold them. Then, provide a response that guides them to the best possible outcome. The basis cost plus fees of any Bitcoin you buy The purchase date If sold, the date you sold it The price you sold it for As you can see, keeping good records of cryptocurrency transactions is essential. Yes No. Estimate your tax refund and avoid any surprises. Looking for more information? Failure rosewill rsv for ethereum mining hash second monero m40 pay your taxes involves potentially steep penalties and fees—not to mention endless letters from the IRS. Compare Popular Online Brokers. Things get trickier when you have cost computer to mine dash monero 980 ti in multiple places, he said. If you overpaid, make sure to read up on: They feel like people should comply and use their best efforts to figure out cost basis," Morin said. Pay for additional TurboTax services out of your federal refund: A wall of ethereum maximum value ethereum life staff drop rate can look intimidating and many won't read it, so break it up. Customer service and product support vary by how do bitcoins affect me can i keep high value on coinbase of year. Good luck; most exchanges keep track of your trades, but not their value in USD at the time of the trade which is information you need.
Profits are not the same as the gross dollar amount traded, profits are calculated from all capital gains and losses in a year. But, to make the decision if your business is a hobby, the IRS looks at numerous factors, including the following:. Audit Support Guarantee: If you accept Bitcoin for services you have earned income. Be a good listener. Make it apparent that we really like helping them achieve positive outcomes. Namespaces Page Discussion. Trading records can be imported from all major trading exchanges, including Coinbase, Circle, Bitstamp, and BTC-e, to produce a complete annual trading history. If Bitcoin is held as a capital asset, you must treat them as property for tax purposes.