Cryptocurrency technology shook up the economic world when BitCoin burst into the scene a couple months ago. If you aren’t in the loop, you might want to consider checking it all out – starting here! Recently our CEO, Vinnie Fisher, had the privilege to be apart of The Future of Money Summit presented by Totally Crypto, where he talked about cryptocurrency and how is it impacting individual and businesses with reply to taxes. We encourage you to check out the whole presentation below, but we’ve highlighted a few key points for you below as well.
AdvantagesCryptocurrency has many advantages and solves a lot of the problems which are connected to centralized nature of assets/currencies:
- No fraud
- No identity theft
- Immediate settlement
- Access to everyone
- Lower fees
What’s Taxable vs. What Isn’tRemember: as a US citizen you are required to pay taxes, and cryptocurrency is no exception. Currently the IRS is treating this as property (like stocks or bonds) and because of this it is treated like the taxation of property. So, what’s taxable and what isn’t?
- Trading cryptocurrency to a fiat currency
- Trading cryptocurrency to cryptocurrency
- Using cryptocurrency for goods and services
- Selling, trading, or using forked coins or coins you mined
- Buying cryptocurrency with USD
- A wallet-to-wallet transfer (Ex: Bitcoin is sent form one Bitcoin wallet to another)
- Giving cryptocurrency as a small gift