<p>From what I understand, you must report a capital gain (or loss) when you convert the BTC back into dollars.  But I am not an accountant so you should consult your own accountant and not rely on me.</p>

CC BY-SA 3.0
2013-11-20T15:47:53.363Z
2013-11-20T15:47:53.363Z
RentFree
<p>That's it...whenever currencies are traded, the possibility of a K-1 form arises, and since we're dealing with the dollar and the bitcoin here, and some people just trade the two without using them for a "pay-pal" purchase,it seems like a reasonable question.</p>

CC BY-SA 3.0
2013-11-21T00:27:32.853Z
Regulation in the area of digital currencies is still emerging, the best way to approach the topic is probably to talk to a tax advisor or tax lawyer.
Murch
<trading><legal>
Does using bitcoins require a "K-1" under some circumstances?
user8996
# Does using bitcoins require a "K-1" under some circumstances?

(Asked by: username_0 on 2013-11-19)

That's it...whenever currencies are traded, the possibility of a K-1 form arises, and since we're dealing with the dollar and the bitcoin here, and some people just trade the two without using them for a "pay-pal" purchase,it seems like a reasonable question.

**Tags:** trading, legal

> **Comments:**
> **username_1**: Regulation in the area of digital currencies is still emerging, the best way to approach the topic is probably to talk to a tax advisor or tax lawyer.  

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## 1 answers

### Answer by username_2 on 2013-11-20. Score: 0

From what I understand, you must report a capital gain (or loss) when you convert the BTC back into dollars. But I am not an accountant so you should consult your own accountant and not rely on me.


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