Crypto Tax Season

in crypto •  11 months ago

With tax season looming near, I wanted to solicit some feedback regarding other Steemian’s plans to fully report, further research, promptly ignore, unapologetically evade, etc.

  • Is there any way the IRS will be able to enforce proper reporting on cryptocurrency gains in 2017?
  • Is anyone taking measures which are out of the ordinary in order to comply and/or properly file taxes this year?
  • What are your thoughts on crypto being treated as property?
  • Has anyone come across resources which actually do a good job of explaining the best perspective to take?

Here’s the best content I’ve found, but still leaves a lot to be desired as far as offering definitive answers :

https://overcast.fm/+JlWCD_Ksk

http://cryptocurrencyfacts.com/the-basics-of-cryptocurrencies-and-taxes

Sending you all my best as we collectively race exponentially faster towards the great unknown :)

—Taylor
@tayken

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I don’t have any info to share, but I appreciate you sharing the podcast. Going to check that out! Thank you.

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Thanks for the read and glad you found some value. The BadCrypto podcast is definitely a force on the rise.

Oh man...

Things could have changed since I was researching a few months ago, though the basic gyst: there’s a “responsibility” to report both income and capital gains.

Trying to avoid either could equate to tax fraud.

Could be possible to bypass reporting certain sources, depending upon how one has structured their dealings. With risk, of course.

If you’ve been pulling out $20k+ from Coinbase, you’d probably wanna report, as risk of getting busted for avoidance would be higher.

If you’ve really been flying below the radar, more likely to escape without attention. But still, with risk.

In regards to Steem, there may be some room for interpretation and creativity in how to account. i.e. Steem Power may not be accountable as income until Powered Down; could SBD be accounted as worth $1, or market value at time of distribution, etc.

If trading frequently, that might constitute income. Buy and hold long-term, capital gains.

These are the basics.

I’d recommend consulting with a knowledgeable accountant and lawyer specializing in crypto tax regulation to get a clearer idea of how to best structure your reportings, as that’ll give you the best perspective on how to navigate the particulars of your individual situation... ;-)

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Excellent information. Thanks for sharing.

I've read a few articles and watched several videos on this matter and like @rok-sivante stated at the end of their reply, probably best to consult a professional. Thanks for the post.