Cryptocurrency and Taxes

By Michael D. Meyer EA

The first purpose of this book is to explain the structure of the monetary, banking and societal factors that gave rise to the cryptocurrency industry--particularly with the launch of Bitcoin that started the crypto revolution--and is still leading it as the largest crypto by market capitalization and adoption. Learn how Bitcoin works as sound money versus fiat money. Then with that basic monetary and cryptocurrency background, I describe how the IRS classifies cryptocurrency as a property asset and how it therefore expects cryptocurrency transactions to be reported on a U.S. tax return. I describe 28 cryptocurrency types and demonstrate how those are then reported on a 2023 U.S. tax return--in a "real world" case study prepared in TurboTax Desktop® then saved as a PDF file you can download and study. The first six chapters explain cryptocurrencies and the monetary policies that spawned their creation. The last four chapters cover the classification and taxation of cryptocurrency. 1) What is Bitcoin and how does it work 2) Bitcoin as an investment, speculation, or a store of wealth 3) Fractional accounting for bitcoin transactions 4) Ethereum, Litecoin, Bitcoin Cash and the other Altcoins 5) What is sound money and how that relates to Bitcoin 6) The Federal Reserve, U.S. dollar and Bitcoin 7) How the IRS defines, taxes and reports income sources 8) The IRS guidance on cryptocurrency with examples 9) 28 cryptocurrency transaction types with examples 10) Report 28 cryptocurrency transactions on a 2023 tax return * The book includes a 240-word Definitions and Acronyms section explaining the vernacular used in the cryptocurrency, monetary policy, and taxes realms as described in the book. * There are 338 footnotes referencing web pages and internet videos that support the topics discussed to provide additional research and learning opportunities. I provide a PDF file with these footnotes organized as "live" hyperlinks to quickly go to the web link--just by clicking the link. * There are over 340 color images throughout the book that support the topics being discussed. * A "visual bibliography" in the Appendix with book reviews of the 26 books I used for research. * 34 industry leaders/influencers who speak, write, report and evangelize about cryptocurrency are shown in the Appendix with links to their web pages or videos. You can visit my blog at https://TaxesAreEasyBooks.com/blog to download the PDFs of the footnote links and the case study. View blog posts about Cryptocurrency and Taxes topics. See my Twitter/X page for a 93-slide book review presentation on the book at: https://twitter.com/MikeTalksCrypto See my book web page at: https://TaxesAreEasyBooks.com/ About the Author Michael D. Meyer has been an IRS Licensed Enrolled Agent (EA) since 10/14/2016. He has worked in the tax industry since 2012 helping thousands of taxpayers while working at H&R Block for four years and the last seven years as a TurboTaxLive® Credentialed Tax Expert. He began studying cryptocurrency in October 2019, when the IRS began asking each taxpayer about their activity in cryptocurrency. He maintains a Coinbase account as an investor and fully understands the IRS crypto tax rules.

• Format: Paperback
• Language: English
• ISBN: B0CTH52SFD
• ISBN13: 9798846903203
• Release Date: February 2024
• Publisher: Independently published
• Length: 466 Pages
• Dimensions: 9.0" x 1.1" x 6.0"