Looking for guidance with Cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dash, or others?
If you have only purchased cryptocurrency, you have not had a taxable event yet and just need to be prepared whenever you sell. A benefit of the "hodl" strategy.
You can start with understanding how the IRS treats cryptocurrencies, which can be found here.
Included on that page is a link to the original guidance notice. That notice goes into more depth to include mining and using cryptocurrency for business operations.
So if you have sold/traded cryptocurrencies and have very few cryptocurrency sale/trade transactions and prefer to do your own taxes, you would most likely need to fill out one or more 8949 form(s) to include with your schedule D. For the taxpayer with just a few sell/trades that is familiar with using those forms for their typical stock/bond/security activities, cryptocurrencies are handled the same way with respect to short-term and long-term classifications.
For anyone that has more complex circumstances or would just like to have the peace of mind in having someone else look over how they are filing their taxes, give us a call and we will see how we can help you. A bitcoin CPA is ready to help you with your particular circumstances.
For those unfortunate individuals that have experienced the loss or theft of their cryptocurrencies, depending on the circumstances, those losses can be tax deductible and we can help you with determining that too.
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