Putting together everything the SEC and CFTC have said, it is safe to assume Bitcoin and Ethereum aren’t securities, but are commodities in the US.
This section focuses on taxes, rules, and regulations regarding cryptocurrency.
The IRS has released new tax guidance on cryptocurrency. Rev. Rul. 2019-24 covers forks and airdrops. The gist is both count as gross income when you claim or receive them.
Here are some last minute tax tips for crypto traders and investors in the United States.
Washington State Senators have sponsored a blockchain bill, introduced it to the Senate, and it is now in Committee.
To summarize the tax rules for cryptocurrency in the United States, cryptocurrency is an investment property, and you owe taxes when you sell, trade, or use it.
Anyone who realized crypto gains early in a year only to lose money on paper later in the year might want to consider “Tax-Loss Harvesting.”
KYC / AML stands for “Know Your Customer / Anti Money Laundering.” KYC and AML guidelines are followed by banks, insurers, broker-dealers, cryptocurrency exchanges, and other such entities.
The SEC’s Hester Peirce did an interview with Peter McCormack of “What Bitcoin Did” where she discusses crypto regulations.
You can carryover capital losses forward each year. $3k worth of losses can be deducted from capital income or ordinary income each year until the full amount is deducted.
FINRA has been “encouraging” broker-dealers to report details about digital assets. It is good to have formal rules, but some broker-dealers are avoiding crypto to avoid the soft requirements.