Tax Court: Frequent Flier Miles Are Income

imagesAre frequent flier miles income to U.S. taxpayers? On Tuesday, the Tax Court held that they are. Sometimes, anyway.

What does the Tax Court decision mean to you? Let’s explore the ramifications of the Tax Court’s decision in an Explainer.

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The IRS Looked at Bitcoin . . .

bitcoinsA couple months ago, I posted about the problems with taxing bitcoins. In short, we didn’t know if bitcoins were currency or property. Largely, of course, the difference is immaterial: receipt of currency or property constitutes the receipt of taxable income, and using property or foreign currency to acquire goods or services constitutes a taxable realization event.[fn1] The most significant difference is that if bitcoins were property, any gain or loss could be capital, whereas if they were a currency, that gain or loss would essentially always be ordinary.

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