Cryptocurrency and Taxes
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…