Do you invest in bitcoin or other cryptocurrencies?
Do you accept cryptocurrencies as payment in your business?
Then my new article is for you!
You see, in 2019 the IRS issued new guidance dealing with cryptocurrency tax issues that may have important consequences for you.
The punch line: if you bought or sold cryptocurrencies this year, you better report the transactions on your tax return. If you don’t, you could wind up in Uncle Sam’s crosshairs.
Want to get all the facts and stay out of trouble? Read my new article titled Tax Tips: IRS Issues New Bitcoin Tax Guidance.
Three ways our fact-filled article can help you:
- We’ll explain why you have to treat cryptocurrencies as property for tax purposes. For years, the IRS has viewed cryptocurrencies as property. This means that selling them for cash or exchanging them for another cryptocurrency is a taxable event. The new IRS guidelines provide four criteria for treating your cryptocurrencies as property. We’ll tell you what they are when you read the full article.
- You’ll learn what a “fork” is and why it’s important. In the world of cryptocurrency, a fork occurs when the digital register that logs transactions of a particular cryptocurrency diverges into a new digital register. There are two types of forks, one is taxable and one is not. Sound confusing? It is, but we’ll make everything crystal clear when you read the full article.
- We’ll give you specific information about “specific information.”
First a definition:
The “specific identification” accounting method used on property transactions, applies to cryptocurrencies. Specific information requires “adequate identification” of units sold. Using specific information rules may save you taxable income!
When you sell property, you generally sell it on a first-in, first-out (FIFO) basis, unless you are eligible to use the specific identification method. You want to use the specific identification method if you can, because it lets you select the amount of gain or loss your sale will create. (With FIFO, you have no choice). You’ll get the whole story when you read the full article.