Bitcoin Looks Like a Tech Startup to the IRS

The IRS says "virtual currencies" will be treated as property rather than currency.
Will Bitcoins still be fun if you have to pay taxes on them? Photographer: Philippe Lopez/AFP/Getty Images

The Internal Revenue Service has decided that Bitcoins are more like shares of a tech company than the money in your checking account, at least when it comes to taxes. Anyone who spends Bitcoins (or Dogecoins, for that matter) will now need to pay capital-gains taxes based on the difference between the value of the coins at the time they were acquired and their value at the time of the transaction.

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