[couchdive]

I think you are right, by law any other security or commodity or group would normally disclose any known profits or interest made.

It's a capital asset and you must disclose any realized gains or losses on a cost basis. And long term and short term gains rates apply.

The only difference here is that unlike a stock, I can go sell bitcoin on the street and it would be hard to trace.

IRS will have to go after exchanges or somehow get savvy enough for people to post proof of ownership on addresses to show they didn't liquefy their holdings or deal with those who said it got stolen...etcetera

I mean, I understand people don't like paying taxes, but laws in 2014 made it pretty clear you need to claim for crypto in the US. Some will argue that the feds don't make your local coin shop file if you pick up silver all the time in small batches, but if you went and sold 50k in silver to the shop, you better be ready to claim it on your taxes. (unless it sank on your boat of course)

[woolvalley]

It's general property, and you don't have to report pure losses AFAIK. Otherwise everyone will have to report the loss basis of stuff they sell for a loss on craigslist.

[couchdive]

Correct but slightly off.

Although the IRS considers it property, it also allows capital gains and losses on such due to its widely fluctuating price. This means filing cost basis and net gross and loss when the crypto was spent, sold, created (mined), given to another person, etcetera.

here is document Notice 2014-21. In which conditions for crypto IRS conditions are explained in an easy to understand fashion. It's widely interesting to me. https://www.irs.gov/pub/irs-drop/n-14-21.pdf

I filed for gains for three years, losses for one year. But im out of it, everything is to hot for me.

more info on filing losses. It is the same as declaring losses on stocks pretty much. Cost basis when received, bought, created, or given to you on commerce and then consolidation when that crypto is sold, traded in commerce, etc.

http://fortune.com/2018/01/29/bitcoin-taxes-cryptocurrency-i...

https://medium.com/the-litecoin-school-of-crypto/how-to-tax-...