2017 Tax Cuts and Jobs Act
The complete IRS tax code is over 70,000 pages long. The 2017 Tax Cuts and Jobs Act (TCJA) is 185 pages long. You are probably asking yourself, “How do I keep up with all these tax laws”? Let us do the heavy lifting!
We provide tax planning consultations not only on new tax laws, but also in some of the more complex areas of the tax code, such as Schedule C reporting, casualty losses, rental real estate, elder care deductions, and cryptocurrency taxation.
There is a lot and will be more misinformation out there with friends and family and social media memes spreading inaccuracies about the taxation changes that will affect 2018 income tax reporting. Get your information from a reliable source…us!
What’s the latest news on cryptocurrency taxation? The TCJA does not specifically address cryptos except within the context of a Section 1031 like-kind exchange. Popular cryptocurrencies include:
In 2014, the IRS issued guidance that classified cryptos as “property”, not currency. Property is eligible for Section 1031 like-kind exchanges. The TCJA changed the language in Section 1031 from “property” to “real property”. Real property is now defined as real estate. Cryptos are now taxable on not just their conversion to fiat currency but also on exchange transactions, such as Bitcoin to Ethereum, or Litecoin to Bitcoin.
A Cryptocurrency Tax Fairness Act is currently working its way through Congress. This bill would not tax crypto transactions under $600. As of late December 2017, this bill has not yet become law.
For additional information regarding cryptocurrency taxation, see the following articles: