Govt declares cryptocurrencies are NOT securities. In two opinion letters, IRS Chief Counsel office declares that cryptocurrencies are not securities. Obviously, IRS disagrees with
#SEC
#XRP
. 🫢 IRS Ruling 202302011 & 202302012
I heard a rumor that the proposal in the Congress spending package to monitor transactions is no longer in the bill! Very exciting... Can I have a Like?
Attn:
#XRPCommunity
This is the most important blog post we have written on this year.
Bookmark this post and be sure to join both of our live chats on Twitter Spaces and Clubhouse to discuss with Q&A session followed.
"The first meeting in the U.S. Securities and Exchange Commission’s lawsuit against
#Ripple
for the sale of
#XRP
between the two sides since the filing is today, Feb. 22, 2021."
@CoinDesk
The Senate Inflation Reduction Act allocates $45 BILLION specifically to enforce collection on "digital assets" (cryptos). Call your senator now unless you want the IRS coming after you.
There is no tax on just owning crypto. HODLing is tax-free! However, swapping one crypto for another is a taxable event that must be reported on your return.
We are one of the few firms that have genuinely defended crypto investors in a formal IRS audit of their
#crypto
investments. Our background creates some unique insights in terms of what the IRS is doing and how they’re looking at things.
We've got your back!
I haven't heard any statistics about how many IRS employees will be laid off for not getting vaccinated. Assuming at least 20-30% will be laid off, I'm confident that the IRS will seize up, unable to complete work in a meaningful time frame.
Just to be clear, buying a cryptocurrency is not taxable.
Trading cryptocurrency for cash is a taxable event. Also, trading one cryptocurrency for another is a taxable event. There is no difference.
The amount taxed is the capital gain from when you bought it.
The biggest way to reduce your capital gains tax is to hold your assets over a year before selling them.
The second-biggest way to save is to move to a state that doesn't have an income tax.
Positive cryptocurrency regulation is coming in a matter of weeks, by the end of the Trump term.
@BrianBrooksOCC
says, new regulation will “make it easier for crypto investors to know how to invest,” therefore attracting more institutional investors via
@kevinhelms01
@BTCTN
Learn the facts about the "army" of IRS agents coming to visit crypto holders in the US -- and how to avoid them! I'm speaking on the future of IRS crypto enforcement at the
#RareBloom
conference tomorrow after
@IOHK_Charles
opening keynote!
@AltcoinDailyio
@Bitboy_Crypto
@WadzPay
@Jsonsarriasolis
Congratulations to WadzPay on their latest milestone! With the addition of Jason Saria-Solis, the team is undoubtedly poised for remarkable growth and innovation. Jason's wealth of experience in fintech brings a global perspective that will undoubtedly drive WadzPay forward in
Yikes! Next year the question about virtual currencies in goes on the 1040 right after your address before your kids. That will get EVERYONE's attention. What do you think?
"This leaked document, titled Markets in Crypto-assets Regulation (MiCA), went into great detail on how the EU wants to regulate cryptoassets, with a particular focus on fiat-pegged stablecoins." - Crypto News
These members of Congress are basically asking for a reinstatement of Section 1031, Like-Kind Exchange. Like-kind exchange defers taxing crypto trades until cashed out for fiat. They say too much taxation oppresses fintech creativity. Do you agree?
"Speaking at a G-7 gathering, including central bankers, financial ministers and heads of the International Monetary Fund, World Bank, and Financial Stability Board, Mnuchin said there is strong support across G-7 leaders on the need to regulate digital currencies" - Market Watch
Thank you,
@BakkupBradley
for the shout-out. I've got your back! Happy to help.
XRP Investors: Live Twitter Spaces event to discuss: Spark Token Airdrop Tax Not As Bad As Your Fear.
15 minute talk followed by 15 minute Q&A
Tuesday, June 15th at 12:30pm PST
Set a reminder!
I tried calling the IRS lawyer who wrote the IRS Chief Counsel's opinion that digital assets are not securities. The phone company message said that "the person you are trying to reach is not accepting calls at this time." He's probably talking to his boss and Gensler.😟
The IRS classifies
#cryptocurrencies
as property, and property is taxed when you sell it.
If I buy a piece of art and the art price goes up and sell it, I will profit or a gain. The gain over what you bought it at is taxed, not the price you sold it at.
#cryptoart
#crypto
I’m here in the Bahamas to remind
@SBF_FTX
that taxes are owed on income even if obtained by fraud or theft. Also a form 5471 will be do on those 70 companies he constructively owns. Don’t forget the AML forms 8938 and FBAR.
@Bitboy_Crypto
Keep in mind that the IRS considers Bitcoin property, not currency, which means there are tax consequences. If you hold the bitcoin for a year or less, any trading profits are taxed as short-term gains — at the same rates as ordinary income. - Money
CryptoTaxAudit is a service of Donnelly Tax Law. As a team of professional crypto specialists, tax preparers, and Enrolled Agents, we fight for you as a crypto trader.
🧵A huge win
@CryptoTaxAudit
Our client, a prolific
#crypto
trader with 100,000 trades in a single year, faced an
#IRS
audit nightmare. The IRS claimed he owed $1.5M in unreported gains. But we didn't just accept their word for it.
#taxtwitter
#tax
$eth $btc $sol $xrp $dot
98% of tax preparers have never defended a tax audit against the IRS. We are in the 2% at Donnelly Tax Law.
And of that 2%, we are the small percentage that know
#crypto
.
We've got your back!
#cryptotaxfixer
#cryptotaxes
"James Harper is suing the IRS over its recent “crackdown” against cryptocurrency users. More specifically, he claims that demanding private financial information – or seizing it through other means – violates the Fourth and Fifth amendments." Cryptomode
@WadzPay
I'm really looking forward to this AMA and I must say, I'm quite impressed by
@Jsonsarriasolis
hands-on approach to communicating with the community. I think I speak on behalf of the whole $wtk community when I say its great to see someone so engaged and involved with fostering
You must report all your gains (and losses) from selling (swapping or exchanging). Losses reduce your taxes by reducing the amount of taxable gains. Also, you must report your income from rewards of all types.
I have some of the largest clients in the
#crypto
space, with tens of millions in crypto investments, complex reporting obligations, and anti-money laundering reporting needs.
I've got your back!
"The US cryptocurrency industry has just revealed a significant new capability. It has proved conclusively that it can make itself heard on Capitol Hill."
- Financial Times
For smaller-scale U.S. investors, moving to a
#crypto
-friendly state with moderate living costs can allow you to live large off your crypto gains, even if you are not a whale.
#cryptotaxes
According to the National Taxpayer Advocate Service, the IRS has hit historic low levels of customer service.
In particular, for their (individual) phone helpline, they answered on average, in the first quarter of this year, 3% of all phone calls.
This is staggering.
My firm not only prepares tax returns, but we have also created a whole slew of do-it-yourself tools and books, and we now have video courses to help the average person do their
#crypto
taxes and save a lot of money.
1/4
#Florida
has just been named the "Best State for Crypto Taxes" in the US.
- Recognized as the best state due to no state income
#tax
.
- Crypto-friendly regulatory policies, including a pilot program allowing state fee payments in
#crypto
.
@WadzPay
Congratulations to WadzPay Technologies Africa on your exciting partnership with SMI!
This collaboration is a big moment for both organizations and holds so much potential for the future.
By using blockchain technology and your expertise in digital asset management, this
A capital asset that is held greater than 12 months is treated as a long-term capital gain & subject to the reduced long-term capital gains rate of 15%, or 20% for high-net-worth individuals. The length of time your crypto was held determines the type of tax that is paid
@Forbes
The development in the Tezos staking lawsuit is exciting, but not final. It will be months before the judge rules. A win would cause big changes is many crypto tax rules in the U.S. I think their case is strong Go Josh
@nohardforks
#defi
#CryptoTax
Not ready to file taxes? File an extension. Pay 90% of estimated taxes by April 18th, if possible. Take extra time to calculate your crypto gains. Do it right.
Did you get a Form 1099 from Coinbase or another crypto exchange? Take it seriously. Usually, the income amount seems too high. You must still report the high amount and adjust off the difference on your return. Otherwise, expect to get a letter or call from the IRS.
This past weekend, I was distinguished with the title of Fellow at the National Tax Practice Institute in recognition of my accomplishments and learning.
"Clinton, thank you so much for coming on the show. You are the best crypto tax return preparer in the business. You have the cojones to do what every other CPA doesn't. The CPAs that I've talked to have turned me down." — - Charlie Shrem, Untold Stories
"As early as this week, the Biden administration will announce new measures, including sanctions, that will make it more difficult for hackers to seek cryptocurrency payments in ransomware attacks, according to a report Friday from The Wall Street Journal" - CNET
I doubt XRP would ever be taxed as a security because it doesn't represent ownership in a corporation.
If XRP were taxed as a currency, then all gain is taxed as ordinary income. Long term capital gains rates would not apply.
All U.S.-based crypto exchanges will report everyone receiving over $600 in crypto sales in 2022. For prior tax years, many exchanges reported only those receiving over $20,000. In addition, the IRS has used court summons against some U.S. exchanges to obtain taxpayer info.
"For America to remain the financial leader it is today, we must continue to lean forward to innovate and deliver better service and greater economic opportunity while soberly managing practical risks that innovation and new technology may present."
-Brian P. Brooks
Large crypto investors can enjoy 0% on capital gains by moving to Puerto Rico, but you must live there for at least 4 years else, the IRS will hit you with back taxes.
"High net worth crypto traders, could find Puerto Rico to be a good fit. With a corporate tax rate set at 4% for exported services and several other taxes at zero, Puerto Rico is an opportunity worth considering." Forbes
Crypto investor sues IRS over taxes: “Taxing newly created cakes, books, or tokens as income would have far-reaching and detrimental effects on taxpayers and the U.S. economy.” via Fortune
SEC Chairman Gary Gensler's staff is working to meet a demand from Sen. Elizabeth Warren (D-Mass.) that the SEC lay out a broader framework for crypto regulation by July 28 via
@CoinDesk
WARNING: Ultimately, you are responsible for your tax return, regardless of whether you or a professional prepares it.
Meaning, pick your tax professional wisely, or it may be time to learn how to do your own
#crypto
taxes.
We can help!
#cryptotaxes
Big changes ahead for crypto traders! The IRS' new Form 1099-DA will require broker-dealers to report not just transaction details but also the digital asset addresses involved. Privacy alert 🚨 as your wallet addresses will now be tracked.