IRS Considers Virtual Currency Bitcoin Similar To Stock, Bond Holdings

The International Revenue Service issued a six-page report with guidelines on how virtual currencies like Bitcoin are being regulated in the same way as stock or bond purchases.

According to a report by Ars Technica, “That would make it roughly analogous to a stock, bond, or piece of real estate whose value fluctuates over time and would be subject to a capital gains tax when that property (Bitcoin, or another similar altcoin) were to be sold at a profit or loss.”

Bitcoin enthusiast Jared Kenna, CEO of moneyandtech.com, told Wired,

“I think this is going to create a huge opportunity for hosted wallets.”

According to Wired, startup companies interested in designing such wallets could create applications with the ability to track capital gains/losses and even prepare an IRS 1099 Form at the end of the year, making filing that much easier.

Read the guidelines here: http://www.irs.gov/uac/Newsroom/IRS-Virtual-Currency-Guidance

 

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