Comment Long-Term vs. Short-Term (Score 1) 273
How does one determine which specific Bitcoin (or fraction) was spent from one's owned pool to determine whether any appreciation is long-term or short-term? Is it a record-keeping thing only, much like tossing pennies in a jar every day and recording it in a ledger, then taking random pennies back out to pay and noting that they're the oldest, whether or not they are (or can be proven to be)?
I foresee IRS challenges around long-term vs. short-term in audits, especially for folks with lots of transactions.