Bitcoin tax attorney florida

Did you dabble in bitcoin inriding bitcoin tax attorney florida cryptocurrency roller coaster that seemed to captivate the nation? You can run afoul of IRS rules on bitcoin in a few surprising ways. Inthe IRS issued a notice declaring that cryptocurrency is treated like property, not a currency. In each case the bitcoin owner may have created a tax liability. That tax liability will be assessed as if it were a capital gain, and taxed at either short-term or long-term ratesas appropriate.

That issue of cost basis can be problematic, to say the least. Just as for stocks or bonds, the cost basis is the price at which you acquired the asset. So bitcoin owners need to know not only the price when they realized value but also the acquisition price of their digital currency. Normally with stocks, for example, you bitcoin tax attorney florida a Form B from your broker with the cost basis, but with bitcoin you might not.

But both conditions have to be met, and many people may not be using bitcoin times in a year. Whether you cross these thresholds or not, however, you still owe tax bitcoin tax attorney florida any gains.

The agency bitcoin tax attorney florida already sued Coinbase, a cryptocurrency broker, for the records of traders who might not have reported their bitcoin gains. Bitcoin has suffered several high-profile thefts since it was established in However, the new tax rules do away with the deduction for personal theft losses.

Before the recent tax overhaul, owners of bitcoin wanted to know whether they could engage in like-kind transactions with other cryptocurrencies. Now the new tax reform has limited like-kind exchanges to real property, not personal goods. While you must report taxable gains on any realized bitcoin transaction, the IRS also gives you a bit of relief and the potential for a tax break. You can deduct capital losses on bitcoin, just as you would for losses on stocks or bonds, and offset other gains on sale.

If you have losses on bitcoin or any other cryptocurrency, make sure you declare them on your tax return and see if you can reduce bitcoin tax attorney florida tax liability. A tax liability just for using bitcoin? Connect with 13News Now.