With the staggering rise in the value of some cryptocurrencies such as Bitcoin and Ethereum, crypto traders and enthusiasts may have serious tax questions on their minds. With the Internal Revenue Service (IRS) stepping up enforcement efforts, even those who hold the currency — let alone trade it — need to make sure they don’t run afoul of the law. That might be easier to do than you think, given how the IRS treats cryptocurrency.
While one of the selling points of Bitcoin, for example, has been its anonymity (or at least semi-anonymity), authorities have been playing catch-up in recent years with some success.
So it’s all the more reason for those who transact in cryptocurrencies to know the law and what taxes they might be incurring by their actions. The good news: The IRS treats cryptocurrencies similarly to how it treats other capital assets such as stocks and bonds. The bad news: That treatment also makes it difficult to actually use cryptocurrency to buy goods and services.
Here are a number of key things you need to know about cryptocurrency taxes and how to stay on the right side of the law.
- You’ll be asked whether you owned or used cryptocurrency
- You don’t escape being taxed just because you didn’t get a 1099
- Just using crypto exposes you to potential tax liability
- Gains on crypto trading are treated like regular capital gains
- A gift of crypto is treated the same as other gifts
- Inherited cryptocurrency is treated like other inherited assets
Why not take advantage of new technology to manage these taxes?
As new technologies develop in an era of exciting innovations, reliable data collection is undoubtedly important for any organization. Data fuels analytical insights and enables decision optimization. In this blog post, I will share a web-based application that makes must-have services scalable for any business: tax consulting.
The benefits of artificial intelligence are no longer limited to high-profile corporations, movie supervillains and programmers conducting fruitless experiments. What was once science fiction has now finally become reality, and when combined with Deep-Learning technology, it's no wonder that AI is making leaps and bounds. That being the case, and how about applying these technologies to tax advice, web-based help that is fast and professional. Useful at any level of requirement, from professionals in the sector who need to contrast information to citizens seeking to clarify their doubts.
Serapeum Expert System is an online tax advice service that gives answers in 10 minutes to all your doubts about taxes.
Knowing that taxes are important for everyone, Serapeum wanted to offer a service that could help everyone with their doubts in this complex field. That is why they created this online tax advice in Spain The company has the best professionals in this field and the assistance of Artificial Intelligence to provide the right information at any time of the day or night.
You use natural language and you get a solution designed so that anyone can understand it, with multiple legal references in case you have to use it before official bodies.
Serapeum Expert System structures its answers in two levels:
1.- A first answer that acts as a summary and is designed to be easily understandable.
2.- A second, extended answer, designed to be presented to third parties. With multiple legal references.
You will receive the answer in your email, where you can consult it, you can also access your user area and read it, you can print it or download it in PDF format.
You can access Serapeum in two ways
1.- Through Easytax
Easytax is the best option to get answers to your tax questions in a comfortable, fast, accurate and professional way. Buy the consultations you need without further commitments. The price of each consultation is 5 euros VAT included.
2.- Through TAXBREAK and TAXBREAK PLUS
TaxBreak and TaxBreak plus are the best options to clear your tax doubts online when there is volume. By using any of our plans you combine on the one hand a significant savings in tax costs as well as the most efficient and powerful tools that exist today.