Did You Sell Cryptocurrency in 2019?

Did You Sell Cryptocurrency in 2019?

tax planning
With the ubiquity of online transactions and accounts, taxpayers must take the necessary steps to ensure they are in full compliance with tax laws in regard to these transactions. This certainly applies to cryptocurrency transactions, which became significantly more common in recent years. If you have tax-related questions about crypto sales, contact a tax lawyer at SF Tax Counsel. The markets for Bitcoin and other forms of cryptocurrency have been volatile, leading many people to sell their crypto investments during 2019. The IRS has provided guidance regarding crypto sales, and these must be reported as capital gains and losses on Schedule D (1040). Despite its name, the IRS treats cryptocurrency as property and not as currency. Therefore, it is reported like sales of stocks, bonds, and real estate. If you…
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Changes to the 2019 Tax Return that Will Impact All Holders of Cryptocurrency

Changes to the 2019 Tax Return that Will Impact All Holders of Cryptocurrency

Gift Tax
By Anthony Diosdi Recently, the IRS announced a significant compliance measure that will impact anyone with financial interests in virtual currency. Taxpayers with a financial interest in digital currency such as bitcoin will be required to check a new checkbox on Form 1040. This checkbox is on the early release draft of the 2019 Form 1040 and it will appear on Schedule 1. This schedule is entitled “Additional Income and Adjustments to Income.” The checkbox is at the top of Schedule 1.The question the checkbox asks taxpayers is:“At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”This questions sounds eerily similar to Schedule B Part III Line 7. Schedule B Part III Line 7 asks taxpayers if they had…
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Cryptocurrency and Taxes

Cryptocurrency and Taxes

Tax Law
With investments in Bitcoin, Ripple, Ethereum, and other types of cryptocurrency increasing significantly in 2017 and 2018, many new investors should be aware of the tax implications of their investments. Cryptocurrency taxes may seem complicated, so many investors file to address them on their returns. This can result in future liability, however, so you want to make sure you understand how to file taxes based on crypto investments. The IRS is paying more and more attention to taxes on digital assets, and so should tax filers. All Crypto Sales and Trades are Taxable If you sell cryptocurrency for a profit, convert it to U.S. dollars, or spend cryptocurrency in any manner, you need to report it on your tax returns. Failure to do so can result in tax fraud allegations…
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