What taxes do you pay on cryptocurrency in US?
James Baker, CPA
We help business people to implement a correct tax strategy, saving thousands of dollars annually and to expand to the US and the world.
The first thing is to know whether or not you live in the US, you can have a company here, and save a lot of money on taxes.
Did you know that Bitcoin and other crypto currencies are defined by the IRS as property, not currency, since 2014, this is the base the IRS use to decide if an individual owe taxes or not.
The amount taxable would depend on whether you mined it or exchange, when mined the taxation will be immediate because this is what the IRS called a “realization event”, on the other hand if you exchange or buy goods and services and it would be taxed at either short-term or long-term rates and it would depend on the capital gain you might have received.
For this is pretty important to maintain a very careful track of your cryptocurrency activity, so you are sure everything is on rule.
If you ever need a done-for-you service, free time and guarantee your submissions are correct, please feel free to contact us directly at www.jamesbakercpa.com