Cryptocurrency Taxation

Cryptocurrency Taxation – Things to Know

Unless you’ve been living in isolation for the last year or so, it’s surely impossible for you to have not heard about bitcoin and cryptocurrency. Cryptocurrency is very much the topic of the day at this moment in time, but what about cryptocurrency taxation? Well, that’s where things get tricky for everyday individuals, business owners, and investors alike. You see, although the premise of cryptocurrency has been around for decades, it is only now that more of an interest in it is being shown, which is why people are looking to purchase experts offering tax help, to help them deal with cryptocurrency taxation. To help make your tax problem that little bit easier, we will shortly be looking at several things to know in regards to cryptocurrency taxation, to ensure you know what is required to get your taxes in order. Take a look at the following, familiarize yourself with as many of the facts as you can, and we will then go from there.

Call us today for a consultation at 877-788-2937.

Bitcoins are taxable – Years ago, there was a huge deal of hype surrounding the mining of Bitcoins – arguably the most popular form of cryptocurrency, and subsequently people worldwide invested thousands in state of the art computer mining technology to help them ‘mine’ Bitcoins online. If you yourself have managed to mine Bitcoins and now plan on selling them, one clear cryptocurrency taxation law states that you will owe taxes on any Bitcoins that you sell on. Also see our FAQs on cryptos taxation.

Cryptocurrency is treated as property – When it comes to tax help in regards to cryptocurrency taxation, another thing you need to know is that cryptocurrency is treated as a form of property for taxation purposes. This means that, just like in the case of bonds, gold, investment properties, and stocks, it is considered a capital asset rather than like a form of currency such as the dollar. Just because of this however, it is important to remember that not every individual rule which applies to real estate or stocks, will apply to cryptocurrency.

Always seek help from taxation experts – The world of cryptocurrency taxation can be confusing, even for some pros, which is why you should speak to seasoned experts for help and advice. Taxation experts deal with issues such as payroll tax help and tax audit issues every single day, so it’s safe to say that they know what they’re talking about. If you are in possession of cryptocurrency, or are maybe thinking of investing in Bitcoin, seeking tax help from experts is considered a must.

You generally won’t owe taxes when moving the same Bitcoin from one wallet to the next – Bitcoins are stored online in what is known as a ‘wallet’. If you move one Bitcoin from one wallet to the next, you do not owe taxes on it. However, you still need to account for this action. As you can see, the world of cryptocurrency taxation is pretty complex, but you should never cut corners when it comes to your taxes, because once the taxman has his sights set on you, you can rest assured that one way or another, he will catch up with you.

Call us today for a consultation at 877-788-2937.

Disputes will arise from trading Cryptocurrencies and other virtual currencies, and having a tax expert by your side could even the odds if challenged by the IRS or the state. We represent US taxpayers worldwide. Schedule your consultation today at 1-562-204-6700.

About Mike Habib, EA

I own and manage a boutique tax representation firm, we represent taxpayers before the IRS and state tax agencies in various tax controversy matters.

Schedule your consultation today at 1-562-204-6700.

Client Reviews
Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike! April S.
Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him! Joe and Deborah V.
Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation! Marcie R.
Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied! Marshall W.
I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends. Nancy & Sal V.