Crypto Currency and the IRS- What you need to know!
If you are a TRADER in the CRYPTO MARKET or are making plans to be , then you must understand how DIFFICULT it can be to REPORT these trades accurately and timely on your tax return. Crypto currency is commonly referred to as DIGITAL ASSETS and until just recently, the trading of these assets has gone pretty much unregulated. Except for the large brokerage firms, REPORTING the amount you PAID to buy crypto (COST) and the amount you SOLD the crypto (PROCEEDS) for has been left up to the trader to figure out on their own. Since the trading of these assets must be reported on the tax return, this information is necessary to be able to correctly report the GAINS OR LOSSE S from these trades (like stock/bond trading). As a tax preparer, I have received a variety of information from clients who typically use a CRYPTO TRADING PLATFORM which mostly provides some type of a disorganized spreadsheet of random transactions that don’t clearly define or match up the COSTS and PR