In today’s episode, we will discuss what the IRS is doing Virtual Currency. Please look at how we are solving this issue for business owners!
The bill passed by Congress earlier this year had a law about Cryptocurrency, and the IRS had until 2023 or 2024 to figure out how they would deal with Crypto. Well – The IRS is not waiting – it’s on this year’s 1040 form!
So what is the IRS saying about Cryptocurrency?
1. They are now referring to all Crypto as Virtual Currency
2. They are going to tax you on the profits and two different levels
Level 1 – if you sold, traded, or transacted with it and held it for under a year, there is one rate.
Level 2 – if you held it for over a year, the rate is lower. The rates all depend on your tax bracket – not simple.
Also, you would have to prove that you did a “Business Transaction” and what the costs were and show who paid you to take any deductions. Right now, the IRS says – they will “Collect” tax and sort it out with the taxpayer later. We have a service that eliminates – the issues with the IRS.
Businesses can accept Virtual Currency, Digital Currency, or Cryptocurrency; the name keeps changing. That currency is converted to FIAT – U.S. Dollars and deposited into your bank account. So, since you never handled the Virtual Currency – you can show the sale on your books, deduct your cost of goods, expenses, etc. and avoid all the IRS issues.
Want to find out more? npsbank.com/cryptocurrency, and you can book a call or sign up for our service there!