Virtual currency is a digital representation of value that functions as an instrument for money exchange; this includes cryptocurrency and bitcoin. Virtual currency equates to a value in an established real currency.
The IRS.gov web-site posts information and webinars on other tax generated income from sales and services. It is a free source. For more information, refer to the listed IRS Publications below.
- Publication 525, Taxable and Nontaxable Income, for more information on miscellaneous income from exchanges involving property or services,
- Publication 526, Charitable Contributions, for more information on charitable contribution deductions,
- Publication 544, Sales and Other Dispositions of Assets, for more information about capital assets and the character of gain or loss,
- Publication 551, Basis of Assets, for more information on computation of basis, and
- Publication 561, Determining the Value of Donated Property, for more information on the appraisal of donated property worth more than $5,000.