Bitcoin and taxes: Cryptocurrencies may be virtual, but they have real-world tax consequences

Virtual currencies are taxed as property, or as an investment, when you sell them. And using them to buy something counts as selling.
If you’re paid in bitcoin, for instance, that will be treated as taxable income to you.

That means almost every transaction may be taxable and should be reported.

While bitcoin and other cryptocurrencies may be virtual, they have very real-world tax consequences. If you fail to pay the tax you owe, you will be subject to interest and penalties and, in some…

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