"As for buying and selling cryptocurrency, it's treated either as a capital gain or as ordinary income if you treat the coins as inventory : buying, selling, turning over your capital in doing so."
As for Americans, the IRS has this to say:
- Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
- Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
- The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
- A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
Thanks for adding those guidelines. I'm sure American readers will appreciate it..in a certain way. ;)