Congress Again Pressing IRS to Issue Crypto Taxation Guidance
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.
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
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....
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!
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?
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.
I think this is great as it provides better understanding on how to more efficiently engage in these transactions over time.
Yes tax planning is better managed especially knowing what basis options are allowable.