How would they know what the dollar amount was you purchased them at? I get the US based companies have to report the transactions but a lot of these exchanges are global....
Here's the Q&A
http://www.irs.gov/pub/irs-drop/n-14-21.pdf
See questions 12, 13, and 15. The tax reporting requirements are for US citizens only for transactions > $600 and US based third party payment/settlement providers by completing 1099s, which is what a VC money exchanger will now need to do depending on volume and dollar base.
Other countries are following suit. Heck, this IRS guidance comes right after Canada's
Revenue Agency issued its own guidance in November 2013 on the tax rules and treatment of Bitcoin.
From Wikipedia, "Canada, the federal government announced that it was going to regulate Bitcoin under its anti-money laundering and counter-terrorist financing legislation, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The Quebec government agency, the Autorité des marches financiers, also announced that it would prosecute violations of the Securities Act (Loi sur les valeurs mobilières), the Derivatives Act (Loi sur les instruments dérivés) and the Money Services Businesses Act (Loi sur les enterprises de services monétaires) for Bitcoin transactions, particularly those involving Bitcoin ATMs" (
http://en.m.wikipedia.org/wiki/Legality_of_Bitcoins_by_country).
Bitcoin has real time exchange values that are tracked by all money exchangers, so a transaction right now for 0.04 BTC has a USD equivalent of $22.8457. Here's an example of a BTC exchange rate chart:
https://bitcoinity.org/markets
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