Are you part of the virtual currency revolution? Don’t forget to report and pay taxes on virtual currency transactions.
The IRS just issued a news release (IR-2018-71, March 23, 2018) reminding taxpayers to properly report transactions involving virtual or digital currency such as Bit-Coin citing IRS Notice 2014-21 which provides taxpayers and their advisors with guidance on how to properly report virtual currency transactions and pay any tax due on those transactions. For tax purposes, virtual currency is treated as property, not money. This means when you buy and sell virtual currency or use virtual currency to buy things, it is a taxable transaction on which you can recognize a gain or loss and pay tax. Welcome to the revolution. If you are trading or using Bit-Coin or other digital currency, you need to consult with a tax professional to make sure you are properly reporting these transactions.