to Lisa Greene-Lewis, an accountant with TurboTax. Guide to Cryptocurrency Taxes: Crypto Day-trading Source: Shutterstock Without a doubt, several blockchain proponents actively day-trade cryptocurrencies. Daniel Morris, an accountant with expertise in digital currencies. Then, under IRS form Schedule C, deduct your utility costs incurred for your mining business. I bought a computer (or another product or service) using Bitcoin.
They could also hire illegal services, such as computer hacking or even a hitman. Coinbase, the largest Bitcoin exchange in the United States, requesting records for all customers who bought digital currency from the company from 2013 to 2015. But how much tax you owe will depend on how and when you acquired the digital currency which, in fact, isnt treated as a currency at all. 18, 2018, bitcoin may grab headlines when it skyrockets in value, as it did much of last year, or when it plunges precipitously, as it has this week. The zealous tax agency has been hounding cryptocurrency exchange Coinbase to release all its customer data, a ridiculous privacy violation. The bottom line is that this maligned organization has won every single frivolous argument case. Digital exchanges are not broker-regulated by the IRS, which makes matters more complicated for preparing tax documents if you traded cryptocurrency.