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Bitcoin

mark94

Arizona

We haven’t heard much about Bitcoin since you-know-who apparently stopped posting. Also, since the most recent price collapse of this “ investment”.

Here’s something even more troubling than the price drop. The IRS has determined that exchanging cryptocurrency is a taxable event. Further, it is attempting to get individual financial records from the exchanges.

There is a current case where an indidual accumulated $120,000 in Bitcoin, then exchanged it for another currency, which has dropped in value to $60,000. The IRS claims that individual owes $60,000 in taxes from the taxable event when they sold Bitcoin. The indidual will likely have to sell the remaining currency to pay the tax bill.

There are likely thousands of situations out there where someone cashed in Bitcoin, spent the money, and now faces a huge tax bill they can’t afford.