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Five Things You Should Know About New York State’s Taxation of Convertible Virtual Currency

On December 5, 2014, the New York State Department of Taxation and Finance issued TSB-M-14(5)C, (7)I, (17)S, explaining its policy regarding convertible virtual currency. The IRS has held that convertible virtual currency (CVC), such as bitcoin, is treated as property for U.S. federal income tax purposes. Consequently, transactions involving CVC…