Virtual currency transactions are taxable by law just like transactions in any other property. Taxpayers transacting in virtual currency may have to report those transactions on their tax returns.
Even if you don't receive 1099s from crypto exchanges, brokers or other companies who paid you for crypto activities, you will need to report this income on your tax return.
If you earn $600 or more in a year paid by an exchange, including Coinbase, the exchange is required to report these payments to the IRS as “other income” via IRS Form 1099-MISC (you'll also receive a copy for your tax return).
It's important to keep track of every transaction, and enter them into IRS's Form 8949 in order to reconcile your capital gains and losses. All that information then should be reported on your Form 1040 tax return using Schedule.
Can I get a Amen for real! Taxing cryptocurrency was definitely newsworthy. But you are right some churches are taking crypto now. Who would have thought we would have a new wave of currency that is directly tied to technology huh?! Oh how times and money have changed.
Is it really even possible for crypto currencies to be taxed?
I mean crypto technically isn't real money in the broadest sense
It's simply a means with which people can make make transactions free of third party observations
I'd say only actual money can be taxed.
I agree to that
I only partially agree😂😂
Yep✔
The IRS also says you don't have to pay taxes on cryptocurrency that's a gift until you sell, exchange or otherwise dispose of it.
Okay. So crypto being mined isn't likely to be taxed?
I'd really like to know
I'd like to research more on it before jumping into conclusions
The IRS says you do not have to pay taxes for purchases of cryptocurrency with real, physical currency.
Okay. That's quite insightful
That's a basic understanding of it
But it's digital and a realistic investment plan.
For the 2020 US tax season, Coinbase will issue the IRS Form 1099-MISC for rewards and/or fees through Coinbase.com, Coinbase Pro, and Coinbase Prime.
Interesting
Exactly ❗
Yeah of course
It's basically the future of online transactions existing in the present
It's the future of finance as a whole
Yes. That's true
Virtual currency transactions are taxable by law just like transactions in any other property. Taxpayers transacting in virtual currency may have to report those transactions on their tax returns.
Okay
Crypto currencies exist as a decentralised type of currency free of third party interruptions. We're your data is free from possible hackers
However it's still very much advisable to store your accumulated coins in a crypto wallet
Can you elaborate on some of the wallets please
It really just depends on how you see it
To some people, crypto currencies are as real as actual money
So it would probably be based on the perception of the users
It technically isn't actually
I don't really think so🤔
I think wed have to make further research in this
It's already obvious what need isn't there?
Non-US customers will not receive any forms from Coinbase and must utilize their transaction history to fulfil their local tax obligations.
That's interesting 🤔
I think there's always need to make careful research in any endeavour before diving head first into it.
That's how to work smart❗
Yeah. It seems like the best option
There's no need for that bud
No need at all
Hmmmm
Yes
I think we should look into this
I agree with you on that.
I agree
Tax filers must answer a question on Form 1040 asking if they had any type of transaction related to a virtual currency during the year.
Okay
Crypto exchanges are required to file a 1099-K for clients who have more than 200 transactions and more than $20,000 in trading during the year.
Alright
That would not be in the near future
But we could make it possible if we push for it.
Rome wasn't built in a day you know. The push is progressive over a long period of time
Yeah. That's true
Slow and steady wins the race I guess😂🤷♂️
Exactly what I wanted to say
Yes. It's very possible
Yeah. It's best that way
Highly unlikely
How so?
I think I read somewhere that they can be taxed🤔
I could be wrong though🤷♂️
I suddenly feel the urge to confirm this from an actual accountant😂
So do I 🤣
Lol. Me too😂
Me three🤣🤣
I have a friend who's an accountant. I'll just ask him later
Me 4😅
I did contact a manager at an ROI company Robert and he confirmed to me.
Wow. That's very interesting
That's dope. Any chance I can get to meet him?
If you earned income as a freelancer or through other crypto-related activity, you may receive Forms 1099-MISC or 1099-NEC.
Okay😁
Me 5 😀, joining in the fun lol.
This seems really fun😂
It's so fun😂
Me 6😁
Me 7😏
Me 8😂😂
The crypto market is also expanding at an alarming rate. Things like this are actually good to invest in especially at their early stages.
The more reason an awareness and more importantly some seminars and webinars to educate more people
Exactly. Knowledge is power
The more people know about this, the better it'll be for them
Exactly ✔
Yep❗
Yes. It's very important to spread the word
Knowledge is power🔥🔥🔥🔥
If only we knew this a decade ago🤧
Right 👉
Even if you don't receive 1099s from crypto exchanges, brokers or other companies who paid you for crypto activities, you will need to report this income on your tax return.
Can u elaborate further?
Life would be so much better😫
It's very wise to invest right now
It's very wise to invest in it right now
Even if taxes are implemented the tax rate will be way too high to keep up with.
Exactly what I thought. People would lose more money than they make because of this.
Yeah. I've observed this
If you earn $600 or more in a year paid by an exchange, including Coinbase, the exchange is required to report these payments to the IRS as “other income” via IRS Form 1099-MISC (you'll also receive a copy for your tax return).
I noticed that
I personally see crypto trading as a very good investment. Provided one is smart in their trading
Yes. It's important to know the best time to sell your coins and understand the market structure
The more the better.
Yep❗
It's important to keep track of every transaction, and enter them into IRS's Form 8949 in order to reconcile your capital gains and losses. All that information then should be reported on your Form 1040 tax return using Schedule.
So as to not lose any of one's finances I presume?
I feel so
Smart contracts can help with this I think🤔
Let's observe.
Hmmm. Seconded❗
Amen to that🙏🔥
Can I get a Amen for real! Taxing cryptocurrency was definitely newsworthy. But you are right some churches are taking crypto now. Who would have thought we would have a new wave of currency that is directly tied to technology huh?! Oh how times and money have changed.
😖