THE IRS IS LEARNING HOW TO TAX CRYPTOCURRENCY

The IRS is aware of "Virtual Currency" as many of you already know. It is vital to keep a log of your purchases, sells, and trades at Fair Market Value. Fair Market Value is what is used for your Cost Basis. Yes, you have to pay taxes on your gains BUT you get to use your loses as well. I have created a spreadsheet with the Date of Purchase, Purchase Price, Rate Trading at time of Purchase, and Amount Purchased. I have also set up an LLC that handles all of my Cryptocurrency Investments. The LLC keeps the liabilities out of my personal life. It gives a degree of separation while the governments are coming to terms with this new currency. Just remember to offset your gains with your losses.

Happy Crypto-purchasing - It's an exciting time!!