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.

Related articles

The Best Leads are Inbound Leads from Markethive

The Best Leads are Inbound Leads     If you are an entrepreneur, a business, a shoe store, an affiliate or referral promotor, musician, artist, attorney, teacher, waitress, anything that requires a buyer or consumer or subscriber to something you have or are selling or promoting, then you need a market. Within that market are […]

Learn More

Malta AI and Blockchain Summit Spring Addition 2019: Day 2 recap

Malta AI and Blockchain Summit Spring Addition 2019: Day 2 recap After a productive day one at the Malta AI & Blockchain Summit, delegates returned for their second dose of expo floor exploration, sessions, workshops and networking opportunities at the Hilton. While the summit attracted established businesses and entrepreneurs encompassing a number of industries, the […]

Learn More

Coinbase’s 2018 Revenue Is 60 Less Than Projected by the Firm: Report

Coinbase’s 2018 Revenue Is 60% Less Than Projected by the Firm: Report                                   Major global crypto exchange Coinbase reportedly saw around $520 million in revenue last year, Reuters reported on April 18. The publication calculated the sum by looking at a filing to Britain’s corporate registry last week showing Coinbase’s non-U.S. revenue equaled around 154 […]

Learn More

Leave a Reply

Your email address will not be published.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