WASHINGTON, March 25 The U.S. Internal Revenue
Service said on Tuesday that virtual currencies such as Bitcoin
are to be treated as property for tax purposes.
Weighing in with official guidance in a murky tax area, the
IRS said wages paid to employees using virtual currency are
taxable to the employee, while other payments made using virtual
currency are also taxable.
"The character of gain or loss from the sale or exchange of
virtual currency depends on whether the virtual currency is a
capital asset in the hands of the taxpayer," the agency said in
(Reporting by Patrick Temple-West; Editing by Kevin Drawbaugh
and David Gregorio)