Tax Seizer on Bitcoin & its legal or not cryptocurrency Trading
Bitcoin is the modern and technical digital money system and this virtual currency system facilitates the secure transactions and storage through the use of cryptographic encryption system. Bitcoins are not printed form of currency these are generated by mining which is the strong digitalized system in which high powered computers and distributed network with the use of open source mathematical formula produce bitcoins.

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Bitcoin is not legal tenders however this is traded by the small scale business and Cryptocurrency trader. Bitcoins can be used to buy goods and services so one can either mine them or buy them by paying cash or through credit card. Bitcoins are also listed on many exchanges and paired with international currencies after the announcement of US Federal Reserve of taking bitcoins as legal tender. After the legal approval the next concern for the investors was about the tax regulations on bitcoins. After the drastic growth and huge investments in the Bitcoin activities it was obvious to impose tax on bitcoins by the tax authorities.

For the tax implications on bitcoins most of the countries are on the same page and even IRS cleared to treat Bitcoin as an intangible asset as it cannot be treated as currency because it is not issued by central bank and cleared about its tax implication.

According to IRS it is important for the tax payer to keep the record of all Bitcoin transactions without considering about its value means whether the transaction value is small or high, it is mandatory to keep record of all kinds of transactions.

Following is the list of some transactions which are under the tax seizer

• Tax seizer will act if bitcoins are sold, mined personally to third party
• When bitcoins selling to third party but brought from someone
•  Using mined bitcoins for buying goods or services
• Using bitcoins to buy goods or services but are bought from someone

In the scenarios one and three, if by using personal resources mined bitcoins are sold to someone for cash or equivalent value good or service then they are taxable as personal or business income but after deducting incurred expenses.

Under scenario two and four if bitcoins are trade for profit means bought and sold with profits then they will be counted under capital gains tax but the tax will be charged on the profit earned and this condition will work only for long term means if the profit was earned after keeping Bitcoin more than one year. If the bitcoins are held less than a year then short term capital gain tax will be implacable equal to the ordinary income tax.
Cryptocurrency automatic trading -thegunbot

All in all, bitcoins are taxable but it is not easy to understand for the beginners to understand about tax obligations on Bitcoin so complete homework about tax regulations for bitcoins must be done before mining or buying bitcoins.

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