Tag: IRS

The Real Reason Behind Bitcoin’s Price Crash Revealed – Cryptocurrency Today

Bitcoin-Price-Today-What-is-triggering-the-Bitcoin-sell-off

The Real Reason Behind Bitcoin’s Price Crash Revealed -Cryptocurrency Today

 

Bitcoin investors in the United States are selling off their crypto to pay off capital gain tax.

First-time investors in Bitcoin are faced with large capital gain taxes from the profit they made in 2017. Reports show that they are now selling off quickly before they file their April taxes.

You’ll recall that the IRS made an announcement in 2014 that cryptocurrencies are defined as property and not currency.

The CEO of ARK Invest said in a quote:

“Those who have never paid taxes before are shocked. Many people gained a lot from cryptocurrency last year but currently, do not have enough cryptocurrency to pay taxes for their last year’s gains.”

Also, the founder of OnlineTaxman.com, Vincenzo Villamena said that people have realized that they are stuck with large tax bills. They are either preparing to pay or selling off the cryptocurrency.

How Does Selling Off Cryptocurrency Help People Avoid Paying Huge Taxes?

If an individual buy and sells Bitcoin within the same year, the person will be taxed on short-term capital gains which can be as high as 39% depending on the tax bracket.

Airdrops and Bitcoin mining are also being taxed. However, they are taxed as ordinary income, and so the rate depends on the Individual’s tax bracket. However, when a person holds on to Bitcoin for more than a year before selling, it will only be liable for what the IRS refers to as long-term capital gains. The rate for this kind of tax is significantly lower from about 15 to. 23.8%.

 

Jun 14, 2018 by Andreas Kaplan

 

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Coinbase Informs 13K Affected Customers Of Imminent Data Handover To IRS

Coinbase Informs 13K Affected Customers Of Imminent Data Handover To IRS

Coinbase Informs 13K Affected Customers Of Imminent Data Handover To IRS

 

US-based cryptocurrency exchange and wallet service Coinbase sent an official notice Friday, Feb. 23 to approximately 13,000 of its customers whose information it is legally required to turn over to the US Internal Revenue Service (IRS).

 

The IRS had initially asked Coinbase in July 2017 to hand over even more detailed information on every one of its then over 500,000 users in an attempt catch those cheating on their taxes. However, another court order in Nov. 2017 reduced this number to around 14,000 “high-transacting” users, which the platform now reports as 13,000, in what Coinbase calls a “partial, but still significant, victory for Coinbase and its customers.”

 

On Friday, Coinbase told the around 13,000 affected customers that the company would be providing their taxpayer ID, name, birth date, address, and historical transaction records from 2013-2015 to the IRS within 21 days.

 

Coinbase’s letter to these customers encourages them “to seek legal advice from an attorney promptly” if they have any questions. Their website also states that concerns may also be addressed on Coinbase’s Taxes FAQ.

 

The ongoing legal battle between Coinbase and the US government dates back to November, 2016, when the IRS filed a “John Doe summons” in the United States District Court for the Northern District of California.

 

On Feb. 13, personal finance service Credit Karma released data showing that only 0.04 percent of their customers had reported cryptocurrencies on their federal tax returns so far this tax season.

 

 

 

Author Molly Jane Zuckerman

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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