Bitcoin: IRS says ‘Less than 100 people have reported holdings so far’
The Big Q: What will be the impact of last years digital currency boom be on US tax payers?
Notably, Germany has declared Bitcoin Tax Exempt.
In Y 2017, cryptocurrencies became among the very trendiest investment opportunities. And, after much debate and question about what the implications of digital currencies are for US tax filers, Tax-day is here.
The IRS has said that less than 100 individuals have reported capital gains investments associated with cryptocurrency holdings as of Friday, 13 April.
According to the IRS, which has provided guidance on Bitcoin (BTC) transactions for more than 4 years, cryptocurrency is considered to be property. And as such, the purchase, sale, trade, and mining of digital currencies could be considered taxable events.
Credit Karma maintains a tax platform, and has documented information from the IRS which has detailed the individuals reporting capital gains from cryptocurrency investments.
According to the report, just under 100 people have reported these taxable events to the IRS out of the 250,000 most recent tax filers, just 4 days ahead of the deadline to file.
Currently, Bitcoin is trading at: 8,138.7852, +31.3701, or +0.39%, as of 6:12a BST, the market is open.
The low figure, which amounts to about 0.04% of tax filers, is not far off from previous figures.
For the 2015 tax year, the IRS indicated that only 802 people had included cryptocurrency gains or losses in their tax filings.
Credit Karma Tax GM explained that there is a “good chance that the perceived complexities of reporting cryptocurrency gains are pushing filers to wait until the very last minute.”
Analysts estimate that the crash in cryptocurrency prices in Q1 of Y 2018 may have been due to a larger sell-off by digital currency investors interested in holding fiat currency heading into tax season.
It is also thought that cryptocurrency holders are ignoring the guidelines and underreporting their activity. As most of the people in the cryptocurrency world tend to have a very high risk tolerance.
Have a terrific week.
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