Cryptos and Taxes, April 15 Is Just Two Months Away

Today is February 15, which is just two months away from when taxes are due, assuming you’re an American citizen of course.

Actually, this year April 15 falls on a Sunday so you get an extra day.

But is anyone paying?

According to this timely CoinTelegraph article just 0.004% of filers have reported crypto gains in 2017.

The information came from Credit Karma and for people that had reported as of this last Tuesday.

I think you have to take those numbers with a grain of salt. The people who file the quickest are generally looking to get that refund. I doubt many are crypto traders.

By the end of the tax season we’ll likely see the number grow a lot bigger and it will be a sizable jump from 2016. It’s no secret the IRS is going after crypto tax evaders. I think most people are sensible enough not to mess around with the IRS.

Speaking of taxes, the Arizona Senate just passed a bill to accept tax payments in bitcoin. That’s pretty big news. Keep in mind though it still has to be reviewed by the House of Representatives and won’t go into effect until 2020. But it’s a step in the right direction.

The ironic part is that pay taxes in bitcoin would likely lead to another taxable event, as this article details.

That’s the problem with cryptos and taxes right now. The IRS considers cryptos property and each exchange is a taxable event. And it makes for onerous tax reporting requirements.

I’m hoping the IRS discovers it will be a huge burden on their end as well and make changes for a more reasonable crypto tax structure.

Until then, pay your crypto taxes.