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RE: What I Saw At The "Blockchain Law & Regulations" Meetup

"As for buying and selling cryptocurrency, it's treated either as a capital gain or as ordinary income if you treat the coins as inventory : buying, selling, turning over your capital in doing so."

As for Americans, the IRS has this to say:

  • Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
  • Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
  • The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
  • A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
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Thanks for adding those guidelines. I'm sure American readers will appreciate it..in a certain way. ;)