BitCoins NOT tax exempt says Revenue CanadaSubmitted by SteveMT on Mon, 04/29/2013 - 19:31
There is no such time as a free lunch.
Revenue Canada says BitCoins aren't tax exempt
Apr 26, 2013 5:02 PM ET
Just in time for tax season, the Canada Revenue Agency says the users of Bitcoins will have to pay tax on transactions in the upstart digital currency.
BitCoins are a fringe online currency that entered the mainstream this year after speculators rushed in and caused their value to more than quadruple in value. Originally designed as a virtual currency alternative to conventional money, the cash value of a BitCoin jumped from under $50 US to above $250 and back earlier this month, as speculators flooded the market after awareness of them grew.
Price swings like that mean some BitCoin buyers and sellers likely made or lost a lot of money, which raises the question of how that will be handled come tax time.