How I Paid My Bitcoin Taxes

Kashmir Hill:

My record-keeping made my accountant’s job much easier, but there were multiple entries as we calculated my gains and losses on each day of spending. Like the day I spent .59 BTC or $56 on mini-cupcakes: Bitcoin was worth $96 that day; I’d bought it at $125, so I took a $17 capital loss. As I bombarded him with numbers (Bitcoin’s value when I bought it, the date I spent it, how much I spent, and the underlying value at the time), he muttered, “The government’s going to kill Bitcoin by taxing it to death.”