First, tax regulations differ for each country around the world, so how Bitcoin is taxed in one country may not be the same elsewhere. Please look into the tax laws of your own country to find the specific details. What is pretty much global, is that buying Bitcoin or any other crypto-currency is not in itself taxable. However, you are likely to be taxed when you sell or even spend those coins and make a profit. How much depends on the amount of gains, how long you owned the coins and if and how your country taxes capital gains.

Capital Gains Taxes

Most countries consider Bitcoin and crypto-currencies as capital assets, and so any gains made are taxed like capital gains. So if you make profits from selling your coins, those profits are taxed. If you make losses, you may be able to deduct the losses and reduce your taxes.

How are the IRS treating Bitcoins?

The IRS produced guidance in 2014 on the specific treatment of Bitcoins and other crypto-currencies, which has helped clarified the situation. Essentially:

• Bitcoin is a personal property, not a currency, and so is taxed as a capital asset
• Gains made from converting Bitcoins into a fiat currency are subject to capital gains tax
• Purchases of goods or services with Bitcoins must also account for gains
• Bitcoins and other alt-coins obtained from mining is recognised income immediately at their fair value
• Mining equipment can still be deducted as a legitimate business expense

Classification

The IRS are treating Bitcoin as property. Any gains made from the sale of personal property are subject to capital gains tax.

Where can I get real tax advice on Bitcoins?

You may find your accountant may not be too familiar with Bitcoin.  https://bitcoin.tax has put together a page of tax attorneys, CPAs and accountants who have registered themselves as knowledgeable in this area and might be able to help.