Do I need to report cryptocurrency to the IRS?

Originally coined in 2009, Virtual Currency refers to “a digital representation of value that functions as a medium of exchange, a unit of account and/or a store of value.” In some environments, it operates like real currency, but it does not have legal tender status in the United States. Cryptocurrency is a type of virtual …

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Are cryptocurrency tax loopholes closing?

A wave of cryptocurrency tax questions from friends and family hit me this past weekend. I am unsure if it related to the stock market dip on Black Friday and people looking to invest elsewhere, the increase in popularity of digital assets or the fact that news articles are coming out about the House passing …

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Are nonfungible tokens the new Bitcoin?

Fungibility is the ability of an asset to be easily and readily interchanged for another like its kind. A $5 bill is fungible, whereas an owned home or a car is nonfungible. Due to the asset’s inability to be interchanged, it makes it one-of-a-kind, or unique. So, what are nonfungible tokens? Don’t miss: QR codes …

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Is increased cryptocurrency regulation on the horizon?

The last few years have brought cryptocurrencies far more into the mainstream, thanks in large part to the meteoric rise in asset value for many of the coins. Such mainstream attention has already brought additional cryptocurrency regulation and IRS scrutiny – in 2014 the IRS began asking taxpayers directly on their Form 1040 whether or …

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Game over or respawn? IRS clarifies treatment of in-game currencies

There’s been plenty of discussion in recent years about cryptocurrency in general, and among the tax community the taxability of cryptocurrency in its many forms and transaction types, including things like in-game currencies and bitcoin. If you’ve started working on your 2019 tax return, or perhaps handed those duties off to your trusted tax professional, …

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