The IRS is getting serious about cryptocurrency. While it's not a new tax topic, conflicting advice about losses and different wording on Form 1040 are resulting in some head-scratching.
Not every digital asset transaction requires you to tick the yes box. For example, just holding a digital asset in a wallet or account, or transferring a digital asset from one wallet or account you own or control to another wallet or account that you own or control doesn’t result in a yes. It also doesn't include the purchase of digital assets using cash or other currency, including through the use of electronic platforms like PayPalDo not leave the question unanswered.
If you buy and sell cryptocurrency as an investment, you'll calculate gains and losses the same way you buy and sell stock. For tax purposes, you figure your capital gains or losses by determining how much your basis—typically, the cost you pay for assets—has gone up or down from the time that you acquired the asset until there’s a taxable event. A taxable event can include a sale, gift, or other disposition.
And while cryptocurrency goes up and down, you care the most about the beginning and the end—what happens in the middle doesn't really count. That’s because, for tax purposes, when cryptocurrency takes a dive, that doesn't equal a realized loss. Similarly, when it goes back up in value, that doesn't equal a realized gain. To realize a gain or a loss for tax purposes, you must do something with the asset, like sell or otherwise dispose of it.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rockets vs. Lakers: Five things to watch in Wednesday's gameThe Rockets will try to make it consecutive wins when they host the LeBron James-less...
Read more »
Megan Fox and MGK Need a ‘Significant Breakthrough’ to ‘Make Things Work’Megan Fox 'isn't sure where things stand' with Machine Gun Kelly after their whirlwind romance hit a rough patch — exclusive details
Read more »
Rockets vs. Pelicans: Five things to watch in Friday's gameAfter winning consecutive games against Boston and the Lakers, the Rockets host the...
Read more »
These Walking-Powered Shoe Insoles Don't Need Batteries to Warm or Cool Your FeetYou don't need batteries to power the Climfeet insoles, you just need to keep moving.
Read more »
Basketball Recruiting - I've Got Five On It: Most intriguing first-round NCAA matchups
Read more »
Stranger Things’ Eddie Munson Blasts Online Trolling Of Chrissy ActorICYMI: A London Comic Con attendee asked how Joseph Quinn felt about recent cases of targeted harassment towards Grace Van Dien. Quinn answered by calling the actions against the Chrissy actor 'awful', revealing he had spoken to her about the experience.
Read more »