Crypto’s tax status: Property
Taxes on gains: Calculated based on the coin’s value as of the date it was traded
The Internal Revenue Service (IRS), a U.S. government agency that collects taxes and enforces tax laws, views cryptocurrencies as properties. Therefore, if you sell your coins for a profit you will be liable to pay a capital gains tax.
In 2014, the agency issued general guidance on how cryptos are taxed. According to Notice 2014-21, received or mined cryptocurrencies must be included in computing gross income with fair market value of the virtual currency as of the date it was received. The taxes are calculated based on that value. Hence, gifts, mining and crypto-to-crypto swaps are all taxable events, estimated by the value of the coins on the day those events occured.
Importantly, crypto-brokers are not required to issue 1099 disclosure forms — the ones used by the IRS to report income other than wages, salaries and tips — which makes the process of reporting gains more difficult for crypto users. However, U.S.-based crypto exchange and wallet service Coinbase has reportedly sent the form to some of its customers.
The IRS has shown significant interest in cryptocurrencies as a source of revenue over the past few years. For instance, in February 2018, Coinbase sent an official notice to approximately 13,000 of its customers, informing them that their data is being handed over to the IRS per their request. Moreover, the IRS allegedly uses software for tracking purposes and reminds crypto holders to pay their taxes via memos, highlighting the “inherently pseudo-anonymous aspect” of cryptocurrency transactions.
Source:cointelegraph
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I think they need to revise these taxes....
You have a minor misspelling in the following sentence:
It should be occurred instead of occured.Steemit income is problematic. In theory the pile of pennies in my account came from my content creation skills. I am planning on reporting the cash as income despite the fact that the money will have a combination of income and capital gains.