We recently published our new KROST Quarterly Magazine which is packed full of articles and insider knowledge focusing on tech topics. Here is an excerpt from the article “The Tax Treatment of Cryptocurrency” by Tax Manager Matthew Weber, CPA, MAcc:
“Many taxpayers realized significant gains from the disposition of cryptocurrencies in 2017, and as tax season approached, these taxpayers had to compile accounting reports, review the latest tax guidance, and determine how to correctly report their transactions to the IRS.
Coinbase has a new online tax report
In the summer of 2017, the IRS narrowed its summons against Coinbase, the largest U.S.-based coin exchange, to retrieve information on large trades and other transactions to find unreported income. At the very end of 2017, Coinbase added tax reporting of capital gains and losses using first in, first out (FIFO), which pleases the IRS and helps taxpayers report their transactions since coin trades are currently not reported on Form 1099-B.
Capital gains and losses
The IRS classifies cryptocurrencies as “intangible property” (a capital asset) because they are not…” Continue here