Share to Twitter Share to Linkedin In 2014, the IRS said crypto was property. Five years went by, and the next thing the IRS said was that hard forks were taxable. How about swaps of crypto for crypto guidance? Not so much. There is no official guidance, although we all know that by statute, 1031 now applies only to real property. How about for 2017 and prior years? It just isn’t clear if you could claim 1031 exchanges on your 2017 taxes . That is why the world sat up when someone from the IRS said–at a conference–that 1031 didn’t apply even to those old years. Is that official guidance? Not hardly. An IRS person said the IRS view was “no” on 1031 for crypto. Suzanne Sinno, an attorney in the IRS Office of the Associate Chief Counsel, made the remark at an American Institute of CPAs conference November 13, 2019. She worked on the recent cryptocurrency guidance the IRS issued , but this was not an official announcement, nor was it “authority” … [Read more...] about IRS Kills Tax Free Crypto Exchanges? Not Hardly
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Share to Twitter Share to Linkedin You might think the biggest tax debate about bitcoin and other crypto is whether you should report it, or whether the IRS will catch people who don’t. Actually, there’s no longer much debate about these topics. Everyone seems to know that you should report, and that the IRS is after those who do not. The IRS is tracking with software, and the IRS Summons of Coinbase is already bearing fruit with account files for the IRS. In fact, the biggest crypto tax debate still seems to be about 1031 , the tax code provision that allows some like-kind exchanges. Everyone knows that 1031 currently only applies to exchanges of real estate. The Trump tax law passed right around Christmas 2017 means that for 2018, you can forget arguing that swaps of one crypto for another are tax free. But there is debate about the past. Shutterstock If you are about to file your tax return, should you claim 1031 treatment for 2017 … [Read more...] about Claiming Bitcoin 1031 Exchanges On Your 2017 Taxes
(CNN) It seems that every few days, a new star announces their foray into the world of non-fungible tokens, cryptocurrency or some other inscrutable corner of the metaverse -- the general term for a nascent virtual space where people can play, meet, and of course, buy things. This has been a habit for a while now, and every starry-eyed announcement usually promises some form of connection or exclusive opportunity. But for the majority of the population who don't own cryptocurrency or NFTs (and may not care to), big names and the pricey tech concepts they promote make for strange bedfellows indeed. Take some recent examples: Last week, Madonna minted an extremely NSFW NFT collection that featured explicit images of her giving birth to a tree, as well as a 3D model of her undercarriage. Charitably, the reactions were mixed. crypto-terms cryptocurrency: a currency that exists virtually and requires complex technology to verify and use NFT: … [Read more...] about The celebrity love affair with NFTs may be just beginning — even amid flops and doubts
Share to Twitter Share to Linkedin Crypto markets are notoriously volatile, but even so, the recent activity has been unsettling. Whether you are a buy and hold investor or an active trader with high frequency moves, it is nerve-wracking, and it may not be over yet. For some, it can be downright devastating, particularly if you had put all your nest eggs in Terra UST UST or Luna LUNA . But even those may bounce back, as luna has shocked some by staging a surprise rally . In the meantime, the turmoil may make plenty of crypto investors, as well as people in various crypto and crypto-related businesses less enthusiastic than they were when prices seemed ever to be climbing. But can some tax losses help? As your dollars shake out in the digital world, is there any lemonade you can make by claiming your losses on your taxes to share the pain with the IRS? First, ask what happened from a tax viewpoint. If you‘ve been trading and triggering big taxable … [Read more...] about Do Crypto Losses Trigger Tax Losses With IRS?