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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