Tax Director John Britto authored an article on crypto taxation, enforcement and reporting for the Mann Report.
The Mann Report
By John Britto, Director, Tax & Business Services
In Notice 2014-21, IRS classified virtual currency as property for tax purposes. Any gain or loss upon the exchange of virtual currency for other property is a taxable transaction. The calculation of gain or loss is measured by comparing the fair market value of the property received in exchange to the cost basis of the virtual currency sold, or vice versa.