McAuliffe's investment paid off almost immediately: Within a month, the price of bitcoin had more than doubled to over $19,000. Although McAuliffe doesn't intend to exchange his virtual currency back into dollars anytime soon, other investors have. You might owe capital gains tax if the bitcoin you paid at the cash register had increased in value from the time you first acquired it. With stock, brokerage firms such as Vanguard and Charles Schwab typically help investors track their gains and losses with a year-end tax document, Form 1099. But many retail investors who do not frequent the site are now coming to grips with the tax consequences of their bets.

Source: Washington Post January 11, 2018 17:15 UTC