Tax expert says buying crypto is not a taxable event
Purchasing crypto with fiat or any “unrealized appreciation” are not taxable events according to Thomas Shea, an EY crypto tax executive. While many refer to crypto as the “Wild West,” some believe that this may only continue for a little longer.Thomas Shea, crypto tax leader at EY Financial Services, told Cointelegraph that taxation for crypto is an evolving area and new regulations may be implemented soon. “There is new legislation that will require reporting for at least some crypto transactions and when those rules go into effect there will be significant changes,” says Shea.The EY....
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Most transfers of cryptocurrency are taxable, unless the transfer is qualified as a gift or a charitable contribution. Way back in 2014, the United States Internal Revenue Service (IRS) ruled that cryptocurrency is property in Notice 2014-21. That classification as property has some big tax consequences accentuated by wild price swings. Buying and selling crypto can trigger gain or loss and be taxable. Yes, buying something using crypto — a house, a car, a new suit — can trigger taxes. Even paying taxes in crypto can trigger taxes.If you owe $5,000 in taxes, you could pay the $5,000 in....
The IRS has considered crypto mining revenue as part of taxable income since 2014. North American mining and hosting firm Compass Mining is offering a new tax avoidance method for savvy crypto miners that file in the United States. In a Thursday announcement, Compass Mining said it had partnered with IRA provider Choice by Kingdom Trust to help Bitcoin users mine directly to their IRAs “without ever triggering a taxable event.” Under current U.S. law, income is often the only taxable source of funds for many who file returns. Crypto users who purchase tokens may be required to declare the....
The US tax regulator, the Internal Revenue Service (IRS), has restated its stance on cryptocurrency staking, clarifying that rewards generated from staking activities are taxable as soon as they are received. The IRS added that staking rewards do not constitute new property, and are therefore subject to immediate taxation upon generation. IRS Confirms Crypto Staking […]
Now that crypto markets have flipped bullish, thoughts have turned once again back to profits and the inevitable cut we’ll need to pay the taxman when the time comes. Generally speaking, a taxable event occurs when you buy, sell, and trade crypto. You are required to report gains and losses on each transaction or when […]
The U.S. Internal Revenue Service (IRS) has modified the crypto question asked on the main U.S. tax form. Reducing the scope of the question, the IRS now focuses on taxable cryptocurrency transactions. New Crypto Question on Tax Form 1040 The IRS published a draft Form 1040 for the tax year 2021 Thursday. Form 1040 is the main tax form used for filing individual income tax returns in the U.S. The draft form shows that the tax agency has modified the crypto question slightly. The crypto question now reads: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose....