Cryptocurrency or Virtual Currency Tax Consequences
By Kokou Michael Logossou
(Tax Resolution Society LLC)
The IRS had issued IRS Notice 2014-21, as guidance for individuals and businesses on the tax treatment of transactions using virtual currencies. According to the notice, the following transactions like the sale or other exchange of virtual currencies, or the use of virtual currencies to pay for goods or services, or holding virtual currencies as an investment, generally has tax consequences that could result in tax liability.Indeed, some virtual currency owners who did not file their virtual currency transactions, might receive IRS educational letters 6173, 6174, or 6174-A advising them to amend their tax returns. So how to file each of the virtual currency transactions? When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitatio...