Cryptocurrency transactions are public.
The IRS is supplied the Wallet ID's owner information. The IRS then knows all of your transactions. Most of which are taxable.
If you are paid in Bitocoin or Cryptocurrency for goods or services you sell, that income IS subject to income tax. Thus, if you are paid in Crypto you have to pay tax on that that income. Affordable Tax & Accounting in Utah will help you report this correctly to avoid penalties and interest from the IRS.
Mining Income or Remuneration is Taxable.
Mining is the process of verifying cryptocurrency transaction to the public ledger - known as blockchain - and then being paid or rewarded with mining rewards, payments, or Coin.
Non-Reporting Can and Will Get You In Trouble.
However, Crypto has different rules from Stock trades. For example, there are is no such thing as a Wash Sale with Bitcoin or Cryptocurrency. Thus, Affordable Tax can help you with Tax Harvesting.
Contact the Cryptocurrency Tax Specialists for a consultation on your Bitcoin trading and taxation 801-295-8829.
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