IRS and Cryptos!! What next?

By
Real Estate Broker/Owner with International Properties and Investments LLC BK679997

The IRS updated their form for U.S. taxpayers they use to report taxpayer's income to include a question about cryptocurrencies.  The question is;  " At any time during the 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"  They have forward this revision to software companies that provide tax programs to include this question. 

 

If you are not familiar with cryptos/coins/tokens you better start getting familiar with it.  Already there has been real estate transactions/closings with crypto instead of cash.  And I hear that that owners of certain properties may sell shares of that property(s) by mean of cryptocurrencies/crypto/coins/tokens. 

 

It's going to get interesting with this issue.  I wonder how many times some seller(s) is going to get taxed for making a profit selling a property.  Capital gain from selling the property itself.  Then taxes the seller who took payment with cryptos if the seller(s) make a profit from selling those cryptos too?  

 

How is the IRS going to determine the captial gain tax of selling a property using cryptos? The current value of that crypto at the time of the sale? 

 

What happens if that crypto that was used for payment and the seller(s) actually loses a profit bases on the current value of that crypto that was used to purchase that property, does the seller gets to write it off?  Is there going to be a time limit?  How many years and how much money/funds per year can you write off? Or maybe nothing at all?

 

It might be something like this; the IRS taxes you for the profits and income that you have made throughout your live and you pay those taxes.  Then the IRS taxes those who inherited the same money or property that has been already taxed prior.  I hear often that this is not a fair system. 

 

I have included the link so you can explore this a bit more.  It's going to be interesting! 

 

What do you guys think? 

 

 

 https://www.coindesk.com/the-irs-will-now-ask-if-you-own-crypto-in-the-1040-tax-form

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Oct 14, 2019 10:25 AM #1
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Debe Maxwell, CRS
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Should be interesting to see how and what gets reported. I'm guessing cryto transactions are going to be way under-reported.

Oct 14, 2019 02:18 PM #3
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