Buying, owning and selling virtual currency is all subject to the IRS supervision and must be recorded and reported properly to avoid severe tax penalties.
1. Characteristics: Virtual currencies are treated as property, as opposed to currency for federal income tax purposes. As a result, basic tax principles applicable to property transactions also apply to Bitcoin transactions.
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Continue Reading What to Know About Tax Implications of Buying, Owning, and Selling Cryptocurrency
Once you stop to think about it, you might will realize you have more digital assets than physical ones. These include online banking and brokerage accounts (banking and brokerage), photo storage sites, social media accounts, and cryptocurrency. If you were to die tomorrow, does anyone have the right to possess these accounts? Will they know the necessary steps to access them?
Online providers handle the accounts of deceased users differently. Some, (like Facebook,) have created a legacy contract, which enables one to designate a person to manage one’s account after death. Others do not have such a clear policy, and there are federal laws (such as The Computer Fraud and Abuse Act and The Stored Communications Act) that severely limits provider’s’ ability to share personal account information with others.…
