The Internal Revenue Service considers cryptocurrency as a property. With that position any gains and losses in cryptocurrency should be treated as capital gains and losses. Credit score startup Qualtrics did a survey last month and the results are as follows: 57% of approximately 2,000 Americans polled have made some gain out of cryptocurrency. The study also concluded that nearly half of that percentage understood how the cryptocurrency would affect their taxes.
In 2017 cryptocurrency market surged enormosly in price. Yet it is still unclear how many Americans hold the cryptocurrency. And the legislation for the virtual currency is still building up. According to the earlier article, from January 1, 2018 all cryptocurrency trading will become taxable due to a new US tax code signed by D.Trump.
On top of that, on February 10, 2018 IRS has set up a special team of criminal agents to investigate possible tax evasion cases, according to the recent news. And that is 2 months prior the tax filing deadline. However, Americans with complex tax situations do tend to file closer to the deadline.
Given the popularity of bitcoin and cryptocurrencies in 2017, we’d expect more people to be reporting.
General manager for Credit Karma Tax