Tax Planning for Mt. Gox Bitcoin Losses Hampered by Lack of Regulations
March 20 —The fallout from the spectacular failure of Japan-based Mt. Gox Co., one of the world's most popular Bitcoin exchanges, is far from over, but tax practitioners who handle returns for Bitcoin investors told Bloomberg BNA they are already looking for ways to minimize the damage to their clients.
That careful tax planning, however, is hampered by a continued lack of guidance from the Treasury Department and the Internal Revenue Service about what, exactly, Bitcoin is.
The 2013 tax year may be the first time many taxpayers have had to consider reporting Bitcoin income, after the virtual currency took investors on a rollicking ride on the exchanges. Trading values rose slowly from about $13 in early January 2013 before a sharp rise in November and eventually topping out at more than $1,100 in early December, according to the CoinDesk price index