Tax pros in the cryptocurrency space are applying a hodgepodge of rules that historically have been applied to stocks, bonds and various other assets.
There is little guidance from the IRS on how to treat a token offering or SAFT for tax purposes. Determining how to do so is a fact-intensive process.
Crypto holders willing to take a risk can file an extension, pay their taxes in installments with penalties and interest, and possibly come out ahead.
The ways governments tax cryptocurrency users may be unjust and due for reform, but simply ignoring the law for this reason is a dicey proposition.
The spreadsheet got more and more complicated, until one day it took two minutes to load.
There has been no new cryptocurrency tax guidance from the IRS since 2014. Consequently, few investors fully understand how to treat 2017 gains.
From depreciation of rig equipment to a second reporting and tax requirement after mined coins are sold, tax rules for miners can get complicated.
U.S. income tax treatment of forks is unclear. A conservative approach would be to treat the receipt of new cryptocurrency as taxable ordinary income.
The prudent individual or business must keep up with regulation and develop a process to organize data related to trading cryptocurrency. Here's how.
Most individuals with unreported cryptocurrency income have options available to mitigate and defend against civil penalties and criminal prosecution.
There is something extraordinarily cruel, crazy even, in the IRS’s approach of treating virtual currencies as property for tax purposes.
Cryptocurrency reminds us that tax and other rules need to be fluid, as inaction or inappropriate responses can halt or slow technological advances.
Active crypto traders can qualify for trader tax status (TTS) to deduct business and home-office expenses. And there might be an additional benefit.
For cryptocurrency traders, the ability to use like-kind exchange rules to avoid U.S. tax on trades is a bit of a “good news/bad news” story.
Calculating tax exposure is always a data-heavy business process. With regular assets, this process is simple. In cryptocurrency, it's anything but.