Cryptocurrency And Your Taxes

VIDEO TRANSCRIPTION

Cryptocurrency like Bitcoin has changed the way a lot of do business including the Internal Revenue Service. If you’re using the 1040 form this upcoming tax season, you should expect to see a question about whether you have sold, received, exchanged, or acquired cryptocurrency in 2019. If the answer is yes, you’ll need to file a schedule one since there is no place on the 1040 to enter virtual income or transactions. The IRS is scrambling to keep pace with the rapidly changing crypto landscape and has issued some guidance for tax payers who engage in these transactions. If you log on to the IRS.gov website, you’ll find a new revenue ruling that examines some common questions from tax payers and tax preparers regarding the treatment of things like a cryptocurrency hard fork, soft fork, and airdrop. There’s also a frequently asked questions section. Now, if you’ve already tried the IRS site and still find yourself in state of virtual confusion, don’t panic. Just call an attorney who understands the rapidly changing rules on cryptocurrency. Call the Law Office of Mary King P.L. at 941-906-7585 or log on to Floridataxlawyers.com.