Back in 2014, the IRS issued Notice 2014–21 which described how existing general tax principles apply to transactions using virtual currency. This notice contained 16 Q&As, which have now been amended and added to the 2019 ruling, resulting in a whopping 43 questions and answers that cover the entirety of crypto taxation issues.
Fair Market Value (FMV) is typically defined as the selling price for an item to which a buyer and seller can agree. For crypto, FMV is the value of the currency when you received it, and the adjusted basis in the property exchanged.
According to the ruling…
They’re back. The U.S. Internal Revenue Service (IRS) has recently released two new pieces of guidance for taxpayers who engage in transactions involving virtual currency.
Additionally, the IRS has published a new draft to form 1040 schedule 1 including a broad declaration regarding crypto holdings or trade.
So what are airdrops and hard forks, and what do they mean for the tax obligations of crypto holders?
In short, an airdrop occurs when a company distributes its tokens to a user’s…
If you are a recipient of the recent IRS tax letters 6173, 6174, or 6174-A regarding your crypto holdings, understanding your filing obligations is crucial. In order to help you understand those obligations and follow proper procedures to ensure the health of your assets, we’ve provided a guide below.
What are the crypto tax guidelines?
According to clarifications released by the IRS in 2014, virtual currencies such as Bitcoin are considered assets that are subject to capital gains: 25% short term, 15% long term.
For example, if you purchase Bitcoin, it appreciates in value, and you sell it, that gain…
It’s been said that nothing in this world is certain except death and taxes. If you’re reading this, thankfully you’re among us in the land of the living. Unfortunately, that means still having to pay taxes… on everything, including your cryptocurrency holdings. The United States Internal Revenue Service (IRS) has begun to remind holders through mass mailings of IRS letters 6173, 6174 and 6174-A that their tokens are subject to taxation and it’s time to pay dues.
The news shouldn’t come as a shock, as the letters are the culmination of an initiative sparked back in 2014 when the IRS…
Innovative tax calculation platform with the aim to assist cryptocurrency holders maintain IRS compliance.