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Lettuce Be

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Member since: Fri Nov 2, 2018, 01:12 PM
Number of posts: 2,288

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Bitcoin is taxable. Trouble is no one mentions that

"... make no mistake: you are required to report gains and losses on each transaction or when you earn cryptocurrency, even if the gain or loss is not material. The IRS holds you responsible for reporting all income and transactions whether you receive a tax form from a crypto exchange or not. ..."

"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."

All transactions, meaning you buy a candy bar, you must keep track of that transaction. It's insane.

I worked for H&R Block last year (luckily had to leave in early March) and this was a giant PITA. Imagine the horror when people discover their Bitcoin isn't so awesome as they were lead to believe. For one it is not anonymous -- they can and will find you if you think you can lie to the IRS.

Crypto and Bitcoin Taxes

Edited to fix sentence I didn't finish
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