Bitcoin
ALERT: THE BIDEN INFRASTRUCTURE BILL INCLUDES PROVISIONS THAT INCREASE THE REPORTING REQUIREMENTS FOR CRYPTOCURRENCY TRANSACTIONS. CONTACT US FOR MORE INFORMATION
When it comes to tax losses on bitcoin and other cryptocurrencies, you’ll find in this article an escape from a tax-loss rule that does not allow you to deduct a tax loss. Yes, you read that right! The tax code has rules that don’t allow current deductions for tax losses.
A hard fork in blockchain technology is a radical change to a network’s protocol and requires all users to upgrade to the latest version of the protocol software. The change makes previously invalid blocks and transactions valid — or vice-versa.
No matter what your attitude or comfort level is about cryptocurrency, it has become mainstream in a relatively short time.
What has gained the keen interest of the IRS is the meteoric rise of bitcoin’s price (before its recent descent) and the increased acceptance of bitcoin and other cryptocurrencies as forms of payment. Bitcoin can now be used to buy much more than you might think.
Whether you’ve invested in Bitcoin and sold it at a profit or loss or received it for services performed, you’ll need to report it on your tax return. Here’s what you should know:
Prior to 2014, there was no IRS guidance and many people did not understand that selling virtual currency was a reportable transaction. They may have found themselves with a hefty tax bill – money they were hard-pressed to come up with at tax time. Others were unaware that they needed to report their transactions at all or failed to do so because it seemed too complicated.
January 27, 2020, marked the start of this year’s tax filing season. Complicating matters is a newly revised Form 1040, U.S. Individual Income Tax Return. With more than 150 million individual tax returns expected to be filed for the 2019 tax year, here’s what individual taxpayers can expect:
In mid-October 2019, the IRS released new rulings regarding how virtual currency is viewed in light of tax law.
The main takeaway is this: If you’ve got crypto, the IRS is keeping a close eye on you. There’s no need to panic! Here at Robert Russo CPA, we’ve put together 4 things you need to understand about taxes on cryptocurrency – and how the new October ruling impacts you.
