Internal Revenue Service is All Set to Release Crypto Tax Guidelines

Internal Revenue Service is All Set to Release Crypto Tax Guidelines

The Internal Revenue Service recently announced that it would be fixing the new guidelines for tax on crypto.

Because the IRS identifies crypto as property and not currency, it is because it is taxable to purchase and sell crypto. Consequently, tax rules which apply for property transactions, such as the sale of collectable coins or vintage vehicles, but not real estate tax rules, are also applicable to Bitcoins and other cryptocurrencies. The fair market value of transactions measured in US dollars must be reported. So if you bought a Bitcoin pizza, you would have the Bitcoin available in dollars equivalent to pizza costs (fair market value).

IRS Commissioner Charles Rettig said in his new address to Emmer that the agency “had it as a priority” to issue the appropriate guidance. The directive specifically addresses issues like acceptable methods for cost basis calculation, cost-based allocation, and fork tax treatment.

Transactions shall be reported in US dollars at their fair market value.

Recent Twitter survey shows that the vast majority of crypto investors refuse to report taxes and are prepared to risk tough sanctions if they find out the unreported earnings from the Internal Revenue Service. Investing Crypto is already risky because it is an emerging market and technology which is not fully utilized at the moment, but it is absolutely flammable to avoid paying taxes. Exchanges work with IRS actively to provide customer information that can be used to compare reported profits or losses. Those who do not report correctly are at or worse risk of being audited.

Article Produced By
Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ – the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

https://www.cryptonewsz.com/irs-to-introduce-guidelines-for-crypto-assets-related-taxes/20791/

Related articles

What is Ethereum? The ULTIMATE Research-Backed ETH Guide

What is Ethereum? The ULTIMATE Research-Backed ETH Guide So what exactly is Ethereum? Ethereum is the leading blockchain app platform that was proposed in 2013 by Vitalik Buterin and went live on July 30, 2015. There are many different strands to this project and getting your head around it all can be quite the challenge. […]

Learn More

China Scraps Plan to Categorize Bitcoin Mining as Industry to Be Eliminated

China Scraps Plan to Categorize Bitcoin Mining as Industry to Be Eliminated                                    More than six months after the China National Development and Reform Commission proposed to categorize bitcoin mining as an industry to be phased out from the country, it appears the agency has now scrapped that plan. The National Development and Reform Commission […]

Learn More

Markethive Coin – MHV Now Listed On Its First Exchange

Markethive Coin – (MHV) Now Listed On Its First Exchange: Press Release     Markethive Makes Headway to Complete the Monetization of the First Market Network to utilize Blockchain Technology.   ANNOUNCEMENT: Markethive’s Cryptocurrency Coin has been accepted by one the first of many exchanges, Raisex.io. Although the mid-term goal is for Markethive to have […]

Learn More

Leave a Reply

Your email address will not be published. Required fields are marked *