Overview of Section 1031 Section 1031 generally permits taxpayers to defer gain or loss on the exchange of properties that are of a “like kind.” The basic reason for allowing…
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UPDATE: In the absence of guidance from the IRS and in light of the inherit difficulty of reporting hard fork income accurately, taxpayers might consider reporting income only when they claim…
Bitcoin Wash Sale FAQs What is a wash sale? A wash sale is a transaction where an investor sells stocks or securities for a loss, but then repurchases the same…
Tax Treatment of Bitcoin Losses Beginning Assumption: This post deals only with “capital losses.” If your bitcoin losses are characterized as “ordinary losses,” then these rules wouldn’t apply. However, very,…
You are permitted to deduct investment related expenses as an “itemized deduction.” However, this deduction is fairly meaningless for most investors. This is because you must actually itemize your deductions…
The proper tax treatment of bitcoin gains is generally uncertain. The issue comes down to whether cryptocurrencies are capital assets, foreign currency, or something else. There are strong arguments…
It is impossible to say at this point whether bitcoins are a foreign currency for purposes of income taxation. No US court has directly addressed this issue, nor has…
Gains are taxable in the year they are realized. Realization occurs when you exchange bitcoins for any type of other property; such as cash, merchandise, or services. This includes…
Yes, bitcoin and other cryptocurrencies are probably a capital asset. Under Sec. 1221(a) of the income tax code, a capital asset is anything that is not: Inventory or property held…