[BeetleB]

The IRS treats BTC as commodities like stocks, not as foreign currencies.

If you mine any coins, that is income you have to pay taxes on. Just like when my RSU stocks vest, I pay (regular income) taxes on the vested amount. It's treated as if my company gave me the money to buy these stocks I now have. Later when I sell them, I'll pay capital gains tax on the gain/loss.

Now if I buy coins, then I will only be taxed on them when I sell them.

[somebodythere]

> The IRS treats BTC [...] like stocks

This is also not correct. Crypto-tokens that are not securities are considered property. As such, they are not subject to wash-sale rules, while stocks are. (Not legal advice.)

Before anyone gets excited, despite being considered property, crypto-tokens are explicitly not eligible for 1031 like-kind exchanges after the latest tax bill (although it's debatable that they were allowed prior.)

[nihonde]

1031 is for profits.

As far as I know, you can still take a loss, then re-purchase at FMV, and claim the loss, even though you end up with the same assets in your portfolio.

[alkonaut]

If you trade an asset, any costs you have in the transactions are deduced (real estate agents fees deducted from house selling price, fees/commissions when buying selling stock etc) and you are only taxed for the net. I wonder if taxes from mining coins are for net gains? That is, can you deduce the electricity cost?