Cryptocurrency Taxation: CPA Panel Discussion

Crypto tax topics addressed by the xCubicle-hosted CPA panel, in which ReSure was represented by Bernard Reisz CPA include:
  • Crypto-to-Crypto Capital Gains
  • Crypto-to-Fiat Taxation
  • Taxation of crypto-gifting
  • Taxation of crypto-mining
  • Crypto-tax for non-US citizens
  • Business entities for crypto-investing and trading – LLCs and C-corps
  • Tax treatment of inherited cryptocurrency
  • 1031 like-kind exchanges for crypto-to-crypto transactions: Utility Tokens vs Digital Currency (Bitcoin, Monero, Ethereum, Zcash, etc.)
  • Tax Basis Calculations: FIFO, LIFO, HIFO, Specific Identification, Average Cost
  • Taxation of ICOs – Initial Coin Offerings
  • Hard Forks, Air Drops
  • The Cryptocurrency Tax Fairness Act
  • Ordinary income vs. short-term gain vs. long-term gain
  • Tax-free retirement accounts (Solo 401K, Checkbook IRA-LLC) for crypto investing
  • The IRS and Virtual Currency: Chainalysis, Coinbase John Doe Summons
  • FBAR (FinCEN 114), FATCA

Crypto IRA and Crypto 401k Overview: Tax Free Bitcoin Interview

In this live radio broadcast, we discussed the fundamentals of Cryptocurrency taxation and tax-free Cryptocurrency retirement account investing. If you’d like to invest tax efficiently in Bitcoin (BTC), Initial Coin Offerings (ICOs), Bitcoin mining, and any other Blockchain venture, this podcast will give you the basics for doing so with Checkbook SDIRA and Solo 401K Plans. The IRS published guidance regarding the tax treatment of virtual currencies in IRS Notice 2014-21. Cryptocurrency transactions, even when no “fiat” is received, are taxable events. For example, if a crypto investor trades Bitcoin for Ethereum, he may owe taxes on that trade – but the transaction will not have provided any US Dollars with which to pay the tax liability (the IRS does not yet accept crypto payment of taxes). Crypto-mining has particularly unfavorable tax treatments as ordinary income. Self-directed retirement accounts, when properly structured, can be used to significantly improve the tax results of mining operations.

How To Buy Bitcoin Using an IRA-LLC or Solo 401k

Self-Directed IRA-LLCs and Solo 401k Plans can buy and sell Bitcoin and other cryptocurrency the same way they can invest in real estate, private equity, tax liens, stocks, and mutual funds. When using Checkbook-Control the process for tading Bitcoin, Ethereum, Litecoin, Zcash, Dash, Ripple XRP, Monero and all other cryptocurrencies is the same as when purchasing them outside of retirement accounts.  Continue reading “How To Buy Bitcoin Using an IRA-LLC or Solo 401k”