Contact: Saul Brenner; Berdon LLP (New York, New York, USA)

 The IRS recently ruled that transactions involving bitcoin and other virtual currencies may create a tax liability since digital currencies, like stocks, are treated as property for all U.S. tax purposes1. Generally, this means that capital gains rates, as opposed to higher regular tax rates, would apply as well as capital loss limitations. This has implications for transactions such as employee wages, payments to independent contractors, and reporting gain or loss on a sale or exchange.

Read more: IRS Says Bitcoin Is Property, Not Currency