Tips, tricks, and hacks for the tech in your life. It’s been a turbulent year for bitcoin, and now it’s time to talk about taxes.
Most people who held on to bitcoin over the past year made money off of it, and as Americans prepare for income tax season, the IRS wants its cut of the profits. Amid unprecedented gains — and unprecedented enforcement efforts — this looks to be the year that tax collectors get serious about bitcoin earnings, which means it’s a very good time to make sure you’re doing everything right.
So let’s get into what you’re reporting and how to report it. To simplify things, we’re only talking about bitcoin here, but note that these general guidelines apply to other cryptocurrencies as well.
Also, none of this is legal advice, so if you have specific questions, it’s best to consult with a tax lawyer or accountant. We’re talking about income tax, so your goal is to figure out your income from bitcoin in 2017.
For the purposes of the IRS, that means bitcoin assets that were converted into non-bitcoin assets like cash or goods and services. Your bitcoin holdings aren’t taxable (at least not yet), but any time you sold bitcoin or used it to buy something, you were accruing taxable income. Read more from theverge.com…
thumbnail courtesy of theverge.com