RMS Accounting knows this year more and more people are investing in Bitcoin and other Crypto Currencies. This year the IRS is also expecting people to report any income they may gain in the newly emerging market.
10/23/19 The IRS has issued guidance on the federal income tax treatment of hard forks.
This Year Bitcoin ballooned, surpassing new high after new high. Along with Bitcoin, we saw huge growth in Ripple, Etherium, LiteCoin, and even the coin started as a joke, DogeCoin. Well, the money people have been making is no joke, and that income is 100% taxable. Chances are your not going to receive a statement telling you how much you made in bitcoin this year, but you are still responsible for reporting it to Uncle Sam. Did you pay someone in Bitcoin this year?, well even if you did you still have a capital gain(or loss) as far as the IRS is concerned. Bottom line there are a lot of complicated rules surrounding the new crypto phenomena, and you want to make sure your up on all the latest rules.
Whether you are a Bitcoin miner, a casual crypto investor, a Bitcoin millionaire, or anything in-between, the tax experts at RMS Accounting understand the tax consequences of this newly emerging market and are staying on top of the guidance that is coming out day by day. The U.S. Government has made one thing clear, the IRS is looking for people to make an example of, so this is an area where you want to especially cautious. If you have a question give us a call at 1(800)-382-1040 for a FREE , no-obligation, tax consultation.
For answers to some commonly asked crypto tax questions check out our Q&A.
***RMS ACCOUNTING DOES NOT ENDORSE NOR ENCOURAGE THE INVESTMENT IN BITCOIN OR OTHER CRYPTO CURRENCIES. ANY INVESTMENTS MADE SHOULD NOT BE DONE BASED ON THE INFORMATION RECEIVED HERE AND NOTHING ON THIS PAGE SHOULD BE CONSTRUED AS INVESTMENT ADVICE. NEVER INVEST MORE THEN YOU CAN AFFORD TO LOSE AND ALWAYS CONSULT YOUR FINANCIAL ADVISOR AS TO YOUR PARTICULAR SITUATION BEFORE INVESTING.