What are the Bitcoin Tax guidelines?

Many Governments are concerned that they are missing out on tax revenues from cryptocurrency enthusiasts, the USA in particular.

 

 

It has been reported by Reuters that less than 100 people out of the 250,000 individuals who have already filed federal taxes this year through company Credit Karma reported a cryptocurrency transaction to U.S. tax authorities.   

 

In an attempt to gain the taxes due to them, popular Cryptocurrency Exchange, Coinbase, has been ordered to send more than 13K client details to the IRS. Read more – Click Here

 

 

Here are the US Treasury department “Virtual Currency guidelines” released on  23 March, 2018:-

 

General tax principles that apply to property transactions apply to transactions using virtual currency. Among other things, this means that:

 

  • A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
  • Payments using virtual currency made to independent contractors and other service providers are taxable, and self-employment tax rules generally apply.  
  • Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer and are subject to federal income tax withholding and payroll taxes.
  • Certain third parties who settle payments made in virtual currency on behalf of merchants that accept virtual currency from their customers are required to report payments to those merchants, Payment Card and Third Party Network Transactions.
  • The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.

 

 

Read the full statement – Click Here

 

 

Are you interesting in Bitcoin or cryptocurrency and don’t know enough yet?

Here are a series put together to help “noobs” get started:-

 

Understanding Cryptocurrency Terminology

How to Bitcoin #1 – Introduction

How to Bitcoin #2 – How is Bitcoin Processed

How to Bitcoin #3 – Bitcoin Trading

How to Bitcoin #4 – Storing Bitcoin

How to Bitcoin #5 – Ways to Make Money with Bitcoin

How to Bitcoin #6 – Mining Bitcoin

 

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Are you a Bitcoin Believer?  Test your belief here – The Bitcoin Believers Business Manifesto

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