Would You Owe Taxes on Cryptocurrency?
It’s the million-dollar concern that a number of crypto investors and crypto newbies alike are wondering for the last years. But, so how exactly does the IRS determine the amount owed in cryptocurrency taxes? By the final end of 2018, crypto had a combined market cap greater than $600 billion, and individuals are continuously becoming more aggressive within their investing.
Numerous investors use the Coinbase platform.
With any investment comes tax concerns. So if you are using this platform or every other similar people, continue reading to take into account all you need to learn about Coinbase tax reporting and crypto taxation as a whole.
1. The IRS’ Definition of Home
First things first, the answer to that million-dollar question – in most situations, yes, you will need to spend fees on cryptocurrency.
L k no further than the IRS’ definition of property.
This definition is organized in IRS Notice 2014-21. In this pair of recommendations, it states that property also includes things bought by way of electronic currency.
Bitcoin is the most form that is popular of today, but other people, such as for example