Zach Mcclure, IRS, Fiat discussed on This Week in Crypto


This episode. We're going to be talking about cryptocurrency taxes for tax filing for twenty nineteen tax year and with me today I have Zach McClure. He is the CO founder of token tax. They help folks repair their cryptocurrency taxes. And for those of you that have followed me for a little bit. I had Zach on last year on. Oc live which is different podcast. That I did so Zach. Welcome to the show. Thank you so much for having me side to be here so let's begin with what do Americans need to know about cryptocurrency taxes? If somebody's just tuning in right now What is three or four or five takeaways known? Then we can dive into the Michael details. Yes so first. Taxable events all have to be reported in one thing that people don't realize actually Crypto crypto trades are taxable events. And if you've bought crypto dollars it's correct that doesn't have to be reported but then if you bought crypto with another cryptocurrency that does have to be reported so another taxable event is by is selling Crypto for Fiat another taxable event. Third one is if you spend crypto to buy coffee to buy software to buy anything you have to calculate your gains and losses on that spend and this hasn't changed but it was clarified by the IRS. At the end of October or the middle of October in two thousand nineteen and then additionally if you receive crypto income. That's the same as receiving the crypto a receiving dollars income. That's a taxable if you also mind crypto that's taxable staking crypto is taxable. There's a big raising the community in shoutout to post which is a nonprofit trying to work with the IRS. For more sensible taxation argument Y staking probably arguably doesn't need to be taxed as the same way as in ordinary income or or mining but TVD. What the IRS actually says about that? And then.

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