Bitcoin, Cryptocurrency and Taxes

What’s all this Bitcoin buzz about?

  • Are you interested in investing in cryptocurrency?
  • Have you already invested in bitcoin?
  • What are the tax implications with cryptocurrency?

If you are a U.S. taxpayer, and you buy, sell, use or trade crypto, you might owe taxes.

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.

Taxable crypto events include:

  • Paying for goods or services using crypto
  • Selling crypto for cash (like cashing out a stock investment)
  • Buying crypto in one exchange using your crypto in another exchange
  • Receiving mined crypto, and crypto rewards
  • Being paid in crypto for employment

In other words, it’s complicated!

The IRS provides guidance here. And like most publications from the IRS, this can be an awesome cure for insomnia.

We can help you navigate these strange new waters. Please give us a call to set up a free consultation.

Call James at 410-457-7331 and get started today.