
James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comOf Counsel
732-568-8360 jmcdonough@sh-law.comAre Bitcoins Taxable? Bitcoins are becoming more visible and popular among consumers, and many investors are even focusing on the prospects that this digital currency may yield. As the demand for Bitcoins – which are used in a digital environment as real cash – increases significantly, the Internal Revenue Service may set its sights on the currency as taxable income.
A recent article in Business Insider noted that the value of Bitcoins have nearly tripled since March alone, and are currently valued at $115. Some analysts predict that as the value of Bitcoins continue to increase and demand grows, new potential tax law guidelines may come into play, the news source theorized.
Some have argued that the U.S. may not focus too heavily on taxing the currency because they are not recognized as legal currency, save for the online world, and they receive financial backing from governments around the globe, Business Insider added. As a result of these stipulations, many who are opposed to taxing them argue that if the currency is not recognized, it should not fall under tax rules.
However, many users are finding ways to add real value to the Bitcoins, which may result in taxation down the road. For example, some users can visit online currency exchange websites and sell Bitcoins for real currency, including USD, the article noted. As a result, this may be considered income under federal law, and therefore taxable.
“As soon as you go to exchange them for dollars, you definitely have a tax obligation on that,” David Stewart, an international tax reporter for Tax Analyst, told the news source. “There is value in Bitcoins, whether or not people outside the Bitcoin community believe it.”
When it comes to businesses that accept Bitcoins, IRS spokesperson Anthony Burke told the Huffington Post that the agency is trying to classify whether payments should be considered payments in foreign currency, barter or in-kind payments, as these may each fall under different tax guidelines.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!