The Bigger Picture of Cryptocurrency Taxes – Fuck all the FUD already. Here’s the REAL deal.
I am qualified to give you the bigger picture of cryptocurrency taxes as I hold a degree in accounting and was a partner in an accounting firm in a previous life in which supervising personal and corporate tax preparation was a part of my daily responsibilities. To this day I do tax prep for myself and my companies year after year. So believe me when I say that the IRS tax picture painted by the mainstream media is not necessarily dark. I’m on something of a rant here after reading this injustice of journalism in the United Kingdom’s Telegraph.
To give you the bigger picture of cryptocurrency taxes I have to first tear apart this article and in the process humiliate its author Vickie Oliphant. First of all, Ms. Oliphant – presumably a citizen of the UK – should not be seen as an expert on the US tax code. Judging from her published work she shouldn’t be seen as an expert in cryptocurrency either. If I had to judge I’d consider her a jackass in the world of journalism. Her previous articles include extensive coverage of snowfall in the United Kingdom and a recent piece exploring the heights of various members of the royal family. Queen Elizabeth must be so impressed by the tabloid tosh Vickie Oliphant is churning out.
While her entire article is slanted shit I’ll shine the spotlight on this particular section:
Why is bitcoin dropping today?
The drop comes after it was revealed cryptocurrency investors could face hefty tax bills as the IRS closes in.
According to the Internal Revenue Service, anything purchased using a digital currency is liable to be taxed as a capital gain.
So anyone who has cashed out or paid for anything using cryptocurrency may have capital gains to report to the IRS.
One Reddit contributor earlier this week claimed they had discovered they owe the IRS $50k because they traded in cryptos.
The user wrote they had ended up with a $50,000 tax liability on trades after they sold $120,000 worth of bitcoin to buy different coins, which have a current value of $30,000.
What the reporter failed to mention is that the investor referenced above – were he to sell all his cryptocoin positions today – would have the benefit of a $90,000 tax deduction.
Ms. Elephant (sic) failed in journalism by not reporting BOTH SIDES of this cryptocoin investing world story. Schedule D on IRS form 1040 allows for the reporting of gains AND losses. Gains are taxed and losses are deducted.
I couldn’t close this accurate article on the bigger picture of cryptocurrency taxes without giving Vickie a parting word of advice; stick to reporting the perfectly obvious and leave cryptocoin to the experts. You keep on reporting to British readers the perfectly obvious such as Prince Harry is tall and it’s snowing outside. You’re not needed for this as anyone can look out their window or see Prince Harry in any number of ways and draw their own conclusions. I’m not particularly sorry if I hurt your feelings. Your irresponsible journalism could wreck people’s lives and global markets. To quote a Brit who has his shit together, I proudly invoke the famous words of legendary chef Gordon Ramsay: “Piss off.”