At the start of 2013, one bitcoin sold for around ten bucks but then shot up to well over $1,000 by year’s end. That’s great news for bitcoiners who bought low and sold high, but there’s a small catch: Uncle Sam wants a cut of the profits — and no one is sure how much.

As with many things related to bitcoin, the tax implications are mind-boggling. For instance, the IRS hasn’t even said if it considers the virtual currency to be a currency in the first place, or if bitcoins should instead by classified as a capital asset. Should bitcoins, in other words, be treated like Apple stocks or like euros and other foreign currencies?

The classification matters because foreign currency and capital asset profits are taxed at different rates. (I’m no authority, but the distinction goes something like this: forex earnings are taxed on a 60/40 formula that blends long- and short-term capital gains, while capital assets must be held for a year…