Quote:
Originally Posted by diskoteque
Not 100% but I think if you use/sell the bitcoin <1yr from time you obtained then any money you've made on market movements would be taxed as ordinary income. Beyond a year would be capital gains.
I think you may be able to get away with a wash sale since those only apply to securities but again not an expert and would suggest talkin to one for something like that
If you are in the USA this is partly wrong. Bitcoin is treated as a stock and capital asset.
If you sell your bitcoin from before 1 year, for profit, from purchase date you owe short term capital gains.
If you sell your bitcoin after 1 year, for profit, you owe long term capital gains.