Cryptocurrency Tax
Trader, Miner, Getting paid in Crypto, we have your solutionBitcoin or other Cryptocurrency investor, trader, or miner? Use crypto to pay for goods or services?
We have helped many of our clients who had not considered the tax ramifications of cryptocurrency.
IRS and Cryptocurrency
The IRS has taken notice of cryptocurrency use and published Notice 2014-21. It established that for federal tax purposes, cryptocurrency is treated as an investment asset. That means virtually every sale of or purchase made using crypto is a taxable capital gain or loss.
As with stock trades, capital losses offset capital gains in full, and a net capital loss is limited to $3,000 ($1,500 for married taxpayers filing separately) against other types of income on an individual tax return. An excess capital loss is carried forward to the subsequent tax year.
What if you are paid in Bitcoin or other crypto?
Many people who have an online business are paid partly or mainly in Bitcoin or other cryptocurrency. If you are paid for your work or services in crypto it is very likely taxable income.
What if you use Bitcoin to buy other cryptocurrencies?
Coin-to-coin trades (e.g., Bitcoin to Ethereum) are also a taxable event and subject to capital gains.
What if you lost money trading Cryptocurrencies?
That is a shame, but we can show you how it can help you reduce your taxes.
Cryptocurrency mining
The fair market value of mined coins is considered gross income. If you have a trade or business mining currencies the income is subject to self-employment tax.
Let us help you
- File your taxes if you trade or were paid in cryptocurrency.
- Take the headache out of cryptocurrency taxes.
- Use your crypto losses to help lower your tax bill.
- Determine whether you have Long-term or Short-term capital gains.Grow your wealth faster.
- Eliminate your Self-Employment tax and reduce your tax bill.
We’ll save you money and keep you compliant with the IRS.
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Jacksonville Tax Accountants
5011 Gate Parkway
Building 100
Suite 100
Jacksonville FL 32256
(904) 217-6363
(904) 325-9039
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