If you have come into possession of Bitcoin or any other digital currency such as Ripple or Litecoin that is “convertible” to a real currency or can be used to pay for goods and services, it may seem virtual. But the Internal Revenue Service considers it very real and you need to account for it at tax time.
Here’s how Bitcoin that you have mined, minted, spent, tipped, gifted, donated, etc., will be taxed, plus two gray areas you should be aware of.
After a rough 20 months in Bitcoin starting with the collapse of Mt.Gox in Feb of 2014, the Bitcoin price has been coming back to life. Well above its 2015 low of $167.00. What’s driving Bitcoin higher? Is it Chinese investors seeking safety, increasing user base, expanding use cases, the reality is all of the above.
After a mostly boring 2015, bitcoin is making waves as the year ends by reaching new price heights. Bitcoin is north of the $400 mark, once again, for the second time since 2014. This time, it has…
Zero Hedge has a bitcoin post regarding the news that Craig Wright attempted to purchase some $80 million dollars worth of gold from an Australian conman named Mark Ferrier.
Tyler Durden is spinning this as if Satoshi Nakamoto had attempted to diversify into gold away from bitcoin. Except, that there is no concrete proof that Craig Wright is Satoshi Nakamoto, and there is no proof that Craig Wright ever had any money, bitcoin or otherwise.
What there is proof of is that Craig Wright:
Is under investigation from the Australian Tax Authorities for a possible scheme to defraud it out of $54 million in rebates.
That he claimed to own a $100 million super computer in partnership with SGI. SGI disavowed ever having Mr. Wright as a client and there is no evidence the computer exists.
That one of his companies was in bankruptcy
I could go on but the picture is pretty dark for someone who maybe the creator of one the biggest technological breakthroughs th
is century and would be estimated to own close to $450 million worth of Bitcoin.
