Yes, your cryptocurrency can be taxed. What, you thought that somehow the Internal Revenue Service wouldn’t want a piece of it? Of course they do! The IRS have even fought Coinbase and won, meaning Coinbase is turning over transaction information on some of its users to the IRS.
And while you may not be included in that small percentage of Coinbase users that are being reported to the IRS, that is not a reason to ignore the tax implications of your cryptocurrency dealings.
Here are some reasons it is good to tell the IRS about your crypto:
- They will find out about it eventually, get out in front of it.
- Declare basis now.
- Income may open up other tax savings – Roth IRA, business expenses, social security too many to mention.
The important thing to do is to get everything above board with your tax professional as early as possible. Some of your gains could be eaten up by fees and penalties in the future if you wait.
KMS Tax Prep is offering a special discount for Cryptocurrency filers through the end of March, 2019, to make sure everyone using this new technology doesn’t get bit the wrong way by Uncle Sam.
Schedule your free phone consultation and mention offer code “CRYPTO10” for 10% off your Cryptocurrency tax preparation package. Packages start at only $499! Who doesn’t want to save $50!?
Remember, not every tax preparer is up to speed on Crypto, let alone Crypto Tax Verified like Kim Schorr at KMS Tax Prep.