Do we know if the profits from a currency exchange are taxed as income or as capital gains?
There’s two sections of the tax code that contradict each other. One says capital gains, one says income. I think the IRS will issue a statement about the Iraq dinar and then they may have to do one again for all the other currencies…If it’s taxed as income, the [purchase] date doesn’t matter. If it’s taxed as capital gains, if it’s less than a year, it’s short-term. If it’s more than a year, it’s long-term capital gains. : Guy
