IRS Virtual Currency Guidance : Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply
https://www.irs.gov/newsroom/irs-virtual-currency-guidance
Notice 2014-21
SECTION 1.
PURPOSE
This notice describes how existing general tax principles apply to transactions using
virtual currency. The notice provides this guidance in the form of answers to frequently
asked questions.
16 questions and answers
Investors typically have to pay taxes on their short-term capital gains at their individual income rates, which will top out at 37 percent next year. The preferential long-term capital gains rate -- which tops out at 23.8 percent -- is owed when such assets are sold after a year.
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