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performance, and past performance is not a guarantee of future performance. You can run afoul of IRS rules on bitcoin in a few surprising ways.
Here’s how using bitcoin can affect your tax situation. In 2014, the IRS issued a notice declaring that cryptocurrency is treated like property, not a currency.
That may sound like a trivial distinction, but it’s the basis for when the IRS decides whether individuals owe taxes. And these tax consequences revolve around what the government agency calls a “realization event.” A realization event, as it relates to bitcoin, involves three actions: In each case the bitcoin owner may have created a tax liability. Read more from nerdwallet.com…
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