Best Bookkeeping Services in Clarkstown, NY

Tax Time for the Crypto-Savvy Country Club Cook For many Americans, tax season is a tedious but relatively straightforward matter of reporting their W-2 wage income and taking the standard deduction. However, things can get a bit more complicated when you have additional sources of income or investments to account for. This is the situation facing Mike, a cook at a prestigious country club who also happens to be an investor in bitcoin and other cryptocurrencies. In addition to her W-2 wages from the club, Mike has realized some gains and losses over the past year from buying and selling bitcoin. While cryptocurrencies like bitcoin have gone relatively mainstream in recent years, they still represent a bit of a tax gray area for many filers. The IRS treats bitcoin and other cryptos as property, similar to stocks or real estate. This means any gains from selling bitcoin are taxed as capital gains, using the same rules and rates that apply to profits from more traditional investments. What makes things a bit tricky for Mike is that he has to report not just her net capital gain or loss from bitcoin, but every single transaction - each buy and sell. Imagine having to log and calculate the gain or loss for every stock trade you made! For an active crypto trader, that represents a lot of record keeping........... For more insight, call tax professional Kolonji Murray of tax preparation firm Tax Assurances located in New Rochelle, NY.