Understanding the Taxation of Crypto (Virtual) Currency
What you'll learn
- The IRS has come up to speed in the crypto (Virtual) currency arena and now expects transactions to be reported annually. Students will learn what the reporting requirements are and how cryptocurrency exchanges will report the results to investors. Learn about the taxation of this relatively new investment area.
Understanding the Taxation of Crypto (Virtual) Currency. Do you own Crypto (Virtual) Currency? This class gives a brief introduction to virtual or cryptocurrency going back to the original white paper written by Satoshi Nakamoto. It briefly defines the concept of a wallet and blockchain and covers the original intent of Bitcoin as a peer to peer decentralized medium of exchange.
The class gives the IRS definition of virtual currency. It also explains how the IRS collects information about and taxes cryptocurrency transactions. Crypto flew under the IRS radar from 2009 to 2013 but no longer. In 2014, the IRS issued its first regulation explaining the taxation of virtual currency. If you own cryptocurrencies such as Bitcoin, Ripple, Ethereum, or any others, you may have a taxable event. Learn the different ways to receive cryptocurrencies and how each is taxed. Understand the way the IRS classifies cryptocurrency. You will be introduced to the IRS regulations regarding virtual currency and the three ways the IRS states that a taxpayer can receive cryptocurrency. Learn what tax reporting to expect from crypto exchanges and under what circumstances the different reporting forms will be issued. Follow along with an actually example of entering cryptocurrency transactions in tax preparation software.
Who this course is for:
- Tax professionals and those investing in or interested in investing in cryptocurrency.
Michael E. Scott, is a licensed Certified Public Accountant in Idaho, Wyoming, and Texas, and has owned and operated CPA practices in all three of those states. He has been active with individual and small business taxation for 45 years. He has accounting and taxation experience with private firms such as Atlantic Richfield Company, EDS, and IBM Corporation. He was a Tax Director in PricewaterhouseCoopers' tax practice for six years. Michael is a national expert in integrating tax into SAP implementations for global U.S. based corporations.
Michael has a Master's degree in accounting from Brigham Young University and is a Certified Management Accountant (CMA) as well as a CPA. He wrote the book "U.S. Tax and SAP" and has authored several other articles dealing with accounting and tax issues. He taught accounting at the University of Texas at Arlington and at Navarro College in Texas.
He currently prepares a few tax returns each year, runs two YouTube channels, (thevideocpa and seniorsinaction) and is the owner and force behind The Video CPA's Targeted Tax Training.