Crypto, the IRS, and Taxes
Taxes, ugh. The bane of cryptocurrency investors.
Made even more complicated by the fact cryptos are borderless.
Nevertheless, something crypto investors need to be aware of. And since I’m from the US, I’ve been following the news of the IRS and crypto.
News came out recently that the IRS will address longstanding questions about the tax treatment of cryptocurrency.
In its original guidance, the IRS stated that for tax purposes, virtual currency is treated as property and not as currency.
Some matters the IRS is expected to address:
How coins gotten from a fork are handled.
The tax implications of staking and airdrops.
Clarity on crypto stored on overseas exchanges.
IRS Commissioner Charles P. Rettig said the forthcoming guidance would address these issues and others.
Some think they will get it out before October 15, when the individual extension due date arrives.
In other news regarding taxes, US Congressman Ted Budd testified to the House of Representatives Ways and Means Committee that cryptocurrencies should have a de minimis tax exemption like foreign currencies.
We’ll see what happens.
I have zero faith the IRS or Congress will do anything productive.
or Abra
and trade cryptos on Binance and Bibox...
And delegate SP with MinnowBooster
I realy do not understand why they doing it
The problem is no one knows where they stand until there is more clarity. There will be loopholes and have a few ideas, but obviously best to keep quiet until they see what they come up with.