So to my understanding cryptocurriencies are now taxed like property/capital gains, courtesy the Obama administrations's 2014 IRS ruling. The problem is these coins were never purchased. They were mined with CPU sweat and tears. As such, I'm not sure how to go about reporting them.
The Bitcoin.tax website only gives examples of people who purchased coins. These were discovered in an old wallet.dat. So I assume the first thing to do is signup for an exchange and then report the gain on the sale, the question is at what baseline? I guess I could use a block explorer to determine the average price at point of creation, but as I mentioned these were not purchased. I could use the money of the sale to help pay off debts, so I'm trying to do this as legally as possible.
Submitted December 14, 2017 at 08:36AM by Dowie605 http://ift.tt/2yrWiEH
