Bitcoin holders in the U.S. might be feeling giddy about the “free money” they’ve received as of late from bitcoin hard forks.
But with tax season right around the corner, they might also be feeling a bit uneasy.
While the money generated by the bitcoin cash hard fork – and the possible money generated by the bitcoin gold hard fork – has played a role in driving bitcoin’s price surge, it’s not all fun and games. Bitcoin owners have effectively acquired value for free, but there is still a cost associated with the assets.
According to Perry Woodin, CEO of Node40, a TurboTax-like platform for cryptocurrency owners:
“People are piling into bitcoin so they can get the free money, but I think very few people are thinking about the tax implications of it. And if they are, they’re probably thinking ‘Well, I can get around it’.”
But that might not be clear thinking.
For tax reporting purposes, the Internal Revenue Service (IRS) currently classifies bitcoin and “other virtual currencies” as property, meaning owners are legally obliged to report the capital gains and losses incurred from cryptocurrency holdings during each calendar year…
Read Full: Make Big Money on Bitcoin Cash? The IRS Might Be Watching