With the price of Bitcoin hitting record highs in 2017, many Bitcoin holders cashed out not realizing the impact it could have on their tax bill.
Many retailers and online businesses now accept virtual currency for sales transactions, but the federal tax implications were relatively unknown until recently when the IRS issued a set of FAQs on virtual currency such as bitcoins. The FAQs provide basic information about the U.S. federal tax implications of transactions in, or transactions that use, virtual currency. Here’s what you need to know. Sometimes, virtual currency such as bitcoins operate like “real” currency–i.e., the coin and paper money of the United … Read More