Videos

IRS Issues Bitcoin Guidance: It's Property, Not Currency, And 1099s Are Required

wochit news
|
March 25, 2014 AT 11:12 AM
The Internal Revenue Service has issued a bevy of Q and A's about digital currencies like Bitcoin. The biggest news is that digital currencies are considered as property for tax purposes. This means that wages paid to employees using virtual currency are taxable, and therefore must be reported on a W-2 form. Payments using virtual currency made to independent contractors are taxable, and payers must issue a 1099. And gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in your hands.