With Tax Reform in the rear view manner, Congress is pressing the IRS to issue additional virtual currency guidance.
Soon? Two Weeks? I wouldn't be surprised to find out some guidance is already in the works.
You can read more here.
https://waysandmeansforms.house.gov/uploadedfiles/letter_irs_virtual_currencies.pdf
Open Issues Include:
- Taxation of Forks
- Taxation of AirDrops
- Basis alternatives to "specific identification"
- Migration of utility token rights from a smart contract to a main net chain (token swap).
- Taxation of tokens issued in Initial Coin Offerings (ICO's) (i.e. to companies).
- Foreign Bank Account Reporting (FBAR) requirements
I still owe a couple articles on the latter two points and FBAR is a topic I hope to address by the end of the month due to the upcoming October 15th deadline.
For detailed guidance on cryptocurrency taxtation issues, please feel free to check out the E-Book: https://steemit.com/bitcoin/@cryptotax/crypto-tax-series-e-book-april-2018-edition-u-s
Steem on!
Crypto Tax
Would love some clarification before October 15 on FBAR....thanks.
I doubt they will address like kind exchange since they killed it going forward for sure....
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The simple rule is if more than $10,000 USD worth of crypto was on a foreign exchange between 1/1/17-12/31/2017, there probably is a filing requirement. The problem is valuation methods (testing max value and reporting it) and tracking down the required information for the crypto accounts (i.e. name, address, country). Coming soon!
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You may call it "simple" but it assumes a lot of interpretation of how you define crypto currency and an "exchange".....I thought the $10,000 referred to bank accounts?
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Right, I meant "simple" as in the "short version of the conclusion."
The foreign crypto exchanges operate similar to a financial institution so although they aren't "bank accounts" per sae, I believe they would be examined under similar principles. Great point.
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I think this is great as it provides better understanding on how to more efficiently engage in these transactions over time.
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Yes tax planning is better managed especially knowing what basis options are allowable.
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