Quote:
Originally Posted by mayabong
If I buy a beanie baby and sell it for thousands more, is that considered investment income? Not trying to be smart just trying to figure it out.
Like I said, I have never cashed out my Bitcoins so those rules wouldn't apply.
Also if you are a merchant and use Bitpay you are not subject to market fluctuations. You aren't even investing in bitconi you are just seeing cash.
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Any net gain from any sale is taxable income.
When/if you cash out you will pay ordinary income or capital gains on profit from each sale.
Merchants that cash out each day don't pay taxes. Those that hold bitcoins for any extended period become investors and are subject to investment rules on the profit/loss of each bitcoin cashed out.
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