Bitcoin tax property
Bitcoins held as capital assets are taxed as property. If Bitcoin is held as a capital asset, you must treat them as property for tax purposes. General tax principles. Exchanged some virtual currency for goods and services or for other property — including different cryptocurrency? You still need to answer. Review IRS tax guidance related to individual and business transactions using virtual currencies, such as Bitcoins or other similar currencies. Virtual currency transactions are taxable by law just like transactions in any other property.