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IRS lists specific Crypto question on 2019 tax form


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Not for nothing but there are like 10 lawyers in the entire world who specialize in crypto currency and US law.

Right. Very rare that anyone would need a tax lawyer for crypto transactions unless they had an ICO or some other rare situation that current tax law doesn't really cover specifically.

 

My accountant had no problem with mine and there were days where my bot was making hundreds of trades per day.

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Crypto schmypto, you trade crypto and make a profit it's a gain(or loss), the only discussion is how that will be treated? Is it considered a financial instrument and get the benefits associated with short/long term gains/losses, or will it be considered a collectible,etc, where they dont?

 

There, I have explained everything! :cigar

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Crypto schmypto, you trade crypto and make a profit it's a gain(or loss), the only discussion is how that will be treated? Is it considered a financial instrument and get the benefits associated with short/long term gains/losses, or will it be considered a collectible, where they dont?

 

There, I have explained everything! :cigar

 

It’s already determined.   You have to calculate capital gain or loss on every transaction except same person wallet to wallet. 

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Crypto schmypto, you trade crypto and make a profit it's a gain(or loss), the only discussion is how that will be treated? Is it considered a financial instrument and get the benefits associated with short/long term gains/losses, or will it be considered a collectible, where they dont?

 

There, I have explained everything! :cigar

The only real controversy is whether it's considered capital gains or ordinary income.

 

Err to the side of capital gains like a stock and you have absolutely nothing to worry about.

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Crypto schmypto, you trade crypto and make a profit it's a gain(or loss), the only discussion is how that will be treated? Is it considered a financial instrument and get the benefits associated with short/long term gains/losses, or will it be considered a collectible,etc, where they dont?

 

There, I have explained everything! :cigar

 

Surely one of the 11 individuals working the CRYPTO FLOOR down the street from KOVA have that answer.

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IRS has clarified

 

 

 

Fortunately, to that end, back in 2014 the IRS released IRS Notice 2014-21, providing its first substantive guidance on the taxation of Bitcoin and cryptocurrency transactions. Notably, the IRS determined that cryptocurrencies are “property” for Federal tax purposes, and not currency. Thus, the sale of cryptocurrency results in capital gains and losses, rather than ordinary income.

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The only real controversy is whether it's considered capital gains or ordinary income.

 

Err to the side of capital gains like a stock and you have absolutely nothing to worry about.

In fact the only consideration is whether you think the IRS is getting your info, if they are not(and cannot) you might want to take your chances. if you think they are, you better do the right thing.

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In fact the only consideration is whether you think the IRS is getting your info, if they are not(and cannot) you might want to take your chances. if you think they are, you better do the right thing.

If they don’t have it, you best bet they will be getting it eventually...at least from US exchanges....Coinbase, Gemini etc....

 

CB has already had to turn over certain records a few years back.

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Probably true, so even if you skated before, and you'd be a fool to amend now, going forward you better get in line. Is that fair?

I would imagine.   Honestly I would imagine no regular auditor wants to mess with figuring out changing BTC to ETH to SKY in satoshis and figuring what price was on any given date.   

 

Once they gave clarification on no like kind transactions, (2018) it set up nightmare scenarios for active traders with poor records.   I think there is better software now, but I am sure they will be looking for the big fish on which to focus to use their limited manpower.  Many people got whipsawed bad late 17/early 18....paper gains that they never realized...might owe tens of thousands in tax with no money to pay when prices dropped January 2018.    Assuming they ever moved or traded during that time.  Even just buying ETH with their BTC. Etc

 

I have an obvious paper trail with my bank, so no way I would have ever even thought about not claiming.

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If you do enough transactions you get a 1099-k from them as well.

 

I basically stopped trading after the new laws clarified...about not claiming like kind transactions with different cryptos.  Wayyy too much paperwork for me.   That’s why I don’t like to fund or pay anything in crypto if I don’t have to. 

 

 

Do they send to IRS as well?   I assume no at this time?

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I basically stopped trading after the new laws clarified...about not claiming like kind transactions with different cryptos. Wayyy too much paperwork for me. That’s why I don’t like to fund or pay anything in crypto if I don’t have to.

 

 

Do they send to IRS as well? I assume no at this time?

Yeah. They are sent to the IRS. 1099's (like 1099-MISC for contract employees) are basically the same as W-2's for regular employees.

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I’ll take the over for max.

you would be betting the dog. I went to a crypto convention here at UM Law a few months ago and met the main players. They are just now trying to put together a curriculum for this to become a specialty. It hasn’t happened yet so they would tell you there are zero at this time.
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you would be betting the dog. I went to a crypto convention here at UM Law a few months ago and met the main players. They are just now trying to put together a curriculum for this to become a specialty. It hasn’t happened yet so they would tell you there are zero at this time.

 

 

There might be thousands of self proclaimed experts but they aren’t really experts education wise

 

I looked it up. 

One firm had about 50 crypto attorneys?

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