You got into Bitcoin last year, made some trades, and now it’s time to pay your cryptocurrency tax. That’s right. Even though Bitcoin was founded on the idea of cutting go-betweens out of the whole financial process, the U.S. Internal Revenue Service still wants its share of your profits. Regulation in the Bitcoin and cryptocurrency
The cryptocurrency world was confusing enough before the U.S. Internal Revenue Service got involved and cryptocurrency tax was born. In late 2017, the IRS ruled that the like-kind loophole popular with real estate investors did not apply to cryptocurrencies, so taxes were owed on all trades. This caught many folks off-guard. Luckily, we’ve compiled 11
As a general rule, that first tax day is a rude awakening for freelancers.
If you’ve left the corporate world behind to set out on your own course, you soon realize why all those deductions coming out of your paycheck every two weeks were necessary.
As individual proprietors, freelancers and other self-employed professionals are responsible for paying their taxes to the state and federal governments. You can do so one of two ways: either with four quarterly estimated tax payments or in a lump sum when you’re doing your taxes before April 15 each year.