Bitocoin and Cryptocurrency Taxation Specialists

The IRS Knows Your Crypto Transactions

Crytocurrency and Bitcoin transactions are taxable and must be listed on your tax return.

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.

Payments To You in Cryptocurrency IS subject to Income Tax

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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.

Bitocoin and Cryptocurrency: What Are Taxable Events?

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  • Coin to Fiat Sale
  • Coin to Coin Exchanges
  • Purchase Made with Coin
  • Receipt of Coin for Goods and Services

What Are Non-Taxable Events

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  • Purchases of Coin with Fiat
  • Transferring Fiat out of an Exchange
  • Moving Coin: Exchange to Exchange
  • Moving Coin: Exchange
  • Hard Forks
  • Gifting Coin to a Charity or another person

Mining is a Taxable Transaction

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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.

Do You Have To Report Cryto Trading, Purchase, Sales and Exchanges on My Tax Return?

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YES!


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.