Lesson Plan For The Future
Crypto Currency such as Bitcoin, Etherium, et al (4000 plus)
Taxation on the sale or exchange of Cryptocurrency…
Remember, Al Capone went to prison for tax evasion. What is the difference between tax avoidance and tax evasion?
10 years in the “Gray Bar Motel.”
In a nutshell… All crypto sells, conversions, payments, donations, and earned income are reportable by US taxpayers
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.
The IRS isn’t kidding around. Failure to report income, including income from the sale of crypto, could result in IRS levying penalties.
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. Please consult with a tax-planning professional regarding your individual reporting obligations.