My initial thought is that they'd be able to deduct the loss since the bitcoin i... | Hacker News

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jstalin on March 25, 2014 | parent | context | favorite | on: IRS Says Bitcoin Is Property

My initial thought is that they'd be able to deduct the loss since the bitcoin is being treated as property and not currency. The trade of property for property is done at market value and any subsequent trade is as well, leading to a loss.

uptown on March 25, 2014 [–]

Wouldn't it be treated as depreciation, which typically has limits?

jstalin on March 25, 2014 | [–]

Unlikely, bitcoin isn't something you'd capitalize (and depreciate) because there's no clear "lifetime" to the asset.

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