Taxation of Digital Currency
We specialize in tax planning related to digital currencies. This includes calculating the gains and losses resulting from the sale or exchange of digital currency for your income tax return. Under IRS Notice 2014-21, digital currency dispositions will be treated as as a sale of property, as opposed to an exchange of a currency.
Therefore, as an example, if you use bitcoin to purchase an item, a tax calculation has to be made to determine the tax gain or loss related to the disposition of the currency for that purchase.