Quote:
Originally Posted by L-Pink
Bitcoins are viewed as an investment since they fluctuate in value. Just like apple stock. If I pay a $428. bill with a share of todays apple stock that you in turn sell later this month for $628. you owe taxes on the $200 profit.
The same is true of any "asset" used as currency. Appreciation is profit, tax is owed on profit.
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I can't speak for how things work in the US, however in Canada I deal with this all the time taking in USD. It's permissible to use a monthly average exchange. I think you are blowing this out of proportion a bit. I appreciate the viewpoint though.
Also, I suppose if you took a trip to canada and exchanged $200 US for canadian money, came home with some remainder, and then the exchange became more favorable, you would be tracking and reporting that?
I'm sure there will be a sane way of acceptably accounting for this worked out at some point.