Jan 01

Tax Time Cometh…

It’s time to start thinking about the tax man.  The IRS says Cryptocurrency is property and must be taxed.  Here is an article that may help to clear some of the confusion.

Ten Tax Tips for Cryptocurrency: Expert Blog

Ten Tax Tips for Cryptocurrency: Expert Blog

1.  Remember, it’s property.

You might not agree with the IRS, but the tax man says cryptocurrency is property. The IRS made this clear in Notice 2014-21. Cryptocurrency isn’t foreign currency, and it isn’t domestic currency, regardless of how you use it. That means every time you transfer it, you might trigger gain or loss. That means taxes.

2.  Barter is old-fashioned, but the IRS gets a piece.

These are old rules, and cryptocurrency hasn’t changed them. Property trades are taxed to both sides, even if one party just wants credit for later. Swapping one product or service for another is taxable, as the IRS explains at its Bartering Tax Center. Earning trade or barter dollars through a barter exchange is also taxable income, just as if your product or service was sold for cash. Plumbing for dental work? The IRS taxes it. You name the swap, it’s income to both sides. Both must report the fair market value of goods or services received on their tax returns.

Read the rest of the story.

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