Posted on 02/15/2021 10:07:36 AM PST by amorphous
Buying and selling crypto is taxable because the IRS identifies crypto as property, not currency. As a result, tax rules that apply to property (but not real estate tax rules) transactions, like selling collectible coins or vintage cars that can appreciate in value, also apply to bitcoin, ethereum, and other cryptocurrencies.
Starting with 2019 tax returns, the IRS requires you to answer “yes” or “no” to a question about whether you had any crypto transactions during the year.
Transactions must be reported at their fair market value as measured in US dollars. So if you bought a pizza with bitcoin, you would have a disposition of the bitcoin equal to the cost of the pizza (the fair market value) in dollars.
If you are lucky enough to receive crypto as a gift you are not likely to have a taxable event until you sell the crypto.
For all transactions, you need the cost basis of each transaction — the amount in dollars that you spent originally to buy it — and the amount in dollars it was worth when you sold it. This will be used to calculate your gains and losses.
The IRS considers cryptocurrency to be property, like stock, and says general principles that apply to capital assets, should apply to crypto transactions.
This will explain Bitcoin in a few minutes without using the word “Bitcoin”
Funny too.
Language warning
https://m.youtube.com/watch?v=YHjYt6Jm5j8
Google, the three letter agencies, and five eyes know who you are. And if you’re using a freebie VPN, you are the product.
Thanks!
Or, you might try actually looking for the answer for yourself.
Yeah, to me it seems to be no more then just another promissory note.. Is it a kids game, played by a bunch of geeks..?
I think it was in “Extraordinary Popular Delusions and The Madness of Crowds” that I read where a Dutch sea captain just arrived from Java unaware of the Tulip Mania raging then, went into a store.
He grabbed an “onion” off the shelf and started chomping down, giving the owner a screaming fit. He had eaten a prize bulb, worth “thousands” of guilders.
My point is that I'm avoiding a high profile, not claiming invisibility.
Just a heads up. You're probably are already aware of this. :)
I’m not invested in Bitcoin, but I’ve started to invest in cryptocurrency. Everyone should.
As the dollar gets worse and weaker, cryptocurrency will get better and stronger.
Could you Freepmail me how to get started? I am very interested.
You do understand that a company selling hardware wallets doesn’t have anything to do with bitcoin network, right? That’s like seeing Amazon have a customer database breach for those buying Nike’s and blaming the federal reserve.
Yes. But to suggest that bitcoin is secure is also a misnomer. It appears that Bitcoin is as secure as the methodology you use t store it - just like fiat money - or gold.
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