As a few online and bricks & mortar casinos now accept bitcoins, I thought I’d mention a potential tax problem. The IRS has ruled that bitcoins are not a currency, but property. As property, I would imagine that transactions would have to be reported, which could result in a very long Schedule D and/or form 8949s. With stocks, your broker will send you most of the required info. But, with bitcoins, I expect you’d need to track this yourself. I expect you’d have to determine with each sale the cost basis of the bitcoin sold. And, you’d need to separate transactions into long-term and short-term. Sounds nightmarish.

Any accountants care to weight in on this?