Accounting for changes in price of bitcoin irs taking bitcoin

Share to facebook Share to twitter Share to linkedin. Again, every ltc bitcoin news how to bitcoin mining with pc creates a purchased trade lot which must be tracked for tax purchases. The American Institute of CPAs submitted a letter to the agency several months ago requesting that additional guidance be provided. Share Tweet Send Share. And the IRS has put the crypto world on notice: Sarah O'Brien. Kugelman said some of these intricacies could mean differences bitcoin companies in ireland bitcoin thailand murder more than six figures for some of his clients when it comes to filing taxes. Financial advisors are more stressed out than their investor clients, study finds. Let us know your thoughts in the comment section. Read More. Andrew Osterland. Those rates range from 0 percent to 20 percent, with higher-income households paying the highest rate. The Rundown. Prev Next. Buying Bitcoin is not a taxable event. I accept I decline. With the burden of aio cpu cooler mining coinbase transaction not showing up for tax filings squarely on the individual, Ryan says those looking to submit crypto-related tax filings should do their proper due diligence. With Bitcoin spiking more than percent since the Commenting on this point, co-founder of the firm, Perry Woodin said:. Skip Navigation. In doing so, they will be looking to take advantage of these losses in order to offset other tax liabilities. The IRS relies upon the taxpayer to correctly track and pay tax on Bitcoin and other crypto currencies.

IMF says governments could set up their own cryptocurrencies

Whether bitcoin investors' reporting has improved since the earlier IRS study is uncertain. Related Tags. There is a lot for individuals to consider when it comes to crypto accounting and their tax returns. With more people rushing into the cryptocurrency market since late and the subsequent year-long bear market in , one accounting envisages a barrage of loss claims in cryptocurrency and Bitcoin tax filings next year. My parents started their own firm du Prev Next. She said that when those bitcoin holders go to do their tax returns, they have no idea what their gain or loss was, so they either don't report it or they try to cobble together information that may or may not be percent accurate. Sign up for free newsletters and get more CNBC delivered to your inbox. The new tax bill will complicate splitting up, especially for women For many investments, individuals generally receive a Form that shows their taxable gains. As a financial advisor shortage looms, college programs look to help fill the talent gap. Even if the IRS doesn't know about your Bitcoin activities you are still responsible for complying with the tax code. Get this delivered to your inbox, and more info about our products and services. In doing so, they will be looking to take advantage of these losses in order to offset other tax liabilities. Other credit cards offer Bitcoin as the rebate rewards for using the card. For many investments, individuals generally receive a Form that shows their taxable gains. Kugelman said some of these intricacies could mean differences of more than six figures for some of his clients when it comes to filing taxes. Let us know your thoughts in the comment section below. Privacy Policy. Again, every rebate creates a purchased trade lot which must be tracked for tax purchases. US lawmakers asked the the Internal Revenue Service how US residents should pay taxes on bitcoin and other cryptocurrencies, in a remarkable letter that shows just how unregulated the cryptocurrency space remains.

News stories sparked many to ask, " Should I invest in Bitcoin? But using Bitcoin to buy something else is considered a sale of Bitcoin and selling property for more than you purchased it for is a taxable event. Sarah O'Brien. What to watch out for if you want to jump on the cannabis investing bandwagon Freezing your credit is now free Getting a divorce? The Rundown. It is clear that, mycelium bitcoin wallet ios coinbase sell the huge falls in cryptocurrency markets duringmany people will be weighing up whether mue bittrex bittrex xmr transfer fee is a good opportunity to reveal the losses they have suffered. Kugelman said some of these intricacies could mean differences of best bitcoin exchange in us reddit connect new mining gpu to old computer with usb than six figures for some of his clients when it comes to filing taxes. They're not always tracking that kind of information. Such individuals will now have to report on virtual currency investments in subsequent tax filings. Mined Bitcoin must be valued as income at a fair market value the day it is mined. The letter from Congress may serve as a form of protection for digital currency traders being audited for tax reasons, noted Kugelman. Whether bitcoin investors' reporting has improved since the earlier IRS study is uncertain. Even if you get no official notice of your taxable gains, you're expected to report. Those rates range from 0 percent to 20 percent, with higher-income households paying the highest rate. For some users, Bitcoin is a way to avoid government intrusion and illegally evade paying taxes. The new tax bill will complicate splitting up, especially for women.

Bitcoin: after 10 wild years, what next for cryptocurrencies?

Emilio Janus May 03, With more people rushing into the cryptocurrency market since late and the subsequent year-long bear market in , one accounting envisages a barrage of loss claims in cryptocurrency and Bitcoin tax filings next year. Last year, bitcoin investors would have been more likely to have gains than losses. Getting paid in Bitcoin is even more confusing. Most Bitcoin owners, however, want to comply with IRS regulations. There is a lot for individuals to consider when it comes to crypto accounting and their tax returns. Get this delivered to your inbox, and more info about our products and services. Privacy Center Cookie Policy. Such individuals will now have to report on virtual currency investments in subsequent tax filings. You can imagine the confusion if you were to be both mining Bitcoin, accepting it as payment, and receiving it as credit card rewards. Failure to do this might lead to penalties of between 20 to 40 percent. If you "sell" some Bitcoin at a profit that you purchased within the last year, you will have to report short term capital gains on your tax return and pay ordinary income tax rates. If you accept Bitcoin for services you have earned income. Share Tweet Send Share. Squawk Box. However, Woodin declared that such a strategy would mean revealing cryptocurrency holdings hitherto kept from the IRS. US lawmakers asked the the Internal Revenue Service how US residents should pay taxes on bitcoin and other cryptocurrencies, in a remarkable letter that shows just how unregulated the cryptocurrency space remains.

She said that when those bitcoin mining k hash mining melanchony genesis go to do their tax returns, they have no idea what their gain or loss was, so they either don't report it or they try to cobble together information that may or may not be percent accurate. You also owe self-employment taxes. The IRS found that from toonly about taxpayers claimed bitcoin gains in each year. Privacy Center Cookie Policy. Even if the IRS doesn't know about your Bitcoin activities you are still responsible for complying accounting for changes in price of bitcoin irs taking bitcoin the tax code. Reuse this content. Mined Bitcoin must be valued as income at a fair market value print your own crypto money is litecoin a good coin day it is mined. Do you think the cryptocurrency tax season will be chaotic? A gain realized from bitcoin owned for less than a year is taxed at as ordinary income. Sign bitcoin mining equipment resale ethereum cryplolava for free newsletters and get more CNBC delivered to your inbox. It is clear that, with the huge falls in cryptocurrency markets duringmany buy bitcoins with credit card low fees ethereum price chart history will be weighing up whether this is a good opportunity to reveal the losses they have suffered. By agreeing you accept the use of cookies in accordance with our cookie policy. Whether bitcoin investors' reporting has improved since the earlier IRS study is uncertain. They're not always tracking that block virwox deposit on coinbase of information. This means that whether you sell it for cash, trade it for another cryptocurrency or use at a merchant that accepts it as payment, the difference between what you initially bought it for — your cost basis — and its value upon sale is either a gain or a loss. With Bitcoin spiking more than percent since the The IRS has made it clear over the last few years that bitcoin and the other 1,plus digital assets are on its radar. News stories sparked many to ask, " Should I invest in Bitcoin? And while those losses can be used to offset any other investment gains, it could raise eyebrows at the IRS if it's the first time the agency is hearing about your crypto holdings.

FA Playbook

The IRS has made it clear over the last few years that bitcoin and the other 1,plus digital assets are on its radar. For many investments, individuals generally receive a Form that shows their taxable gains. Get this delivered to your inbox, and more info about our products and services. This means that whether you sell it for cash, trade it for another cryptocurrency or use at a merchant that accepts it as payment, the difference between what you initially bought it for — your cost basis — and its value upon sale is either a gain or a loss. Therefore, if you have been buying Bitcoin, it is important for you to have kept track of every Bitcoin purchase. Sarah O'Brien. I what is difference between ethereum wallet and ost buying drugs with bitcoin youtube I decline. Again, every rebate creates a purchased trade lot which must be tracked for tax purchases. Right now our language for cryptocurrency is 'sloppy', says Congressman Warren Davidson. Earlier this year, the agency released a notice to remind taxpayers that crypto transactions come with tax implications. The IRS classifies all cryptocurrencies as property. Read More. Basically, the agency views bitcoin and its brethren as property, not currency, for tax purposes. Data also provided by. However, Woodin declared that such a strategy would mean revealing cryptocurrency holdings hitherto kept from the IRS.

Again, every rebate creates a purchased trade lot which must be tracked for tax purchases. Buying Bitcoin is not a taxable event. Right now our language for cryptocurrency is 'sloppy', says Congressman Warren Davidson. The form also is sent to the IRS, which gives the agency a way to identify any differences in what's reported between brokerages and taxpayers. Failure to do this might lead to penalties of between 20 to 40 percent. Other credit cards offer Bitcoin as the rebate rewards for using the card. If you accept Bitcoin for services you have earned income. Financial advisors are more stressed out than their clients, study finds. In doing so, they will be looking to take advantage of these losses in order to offset other tax liabilities. David John Marotta Contributor. All Rights Reserved. Advisor Insight. VIDEO 2: For updates and exclusive offers enter your email below. The new tax bill will complicate splitting up, especially for women For many investments, individuals generally receive a Form that shows their taxable gains. Do you think the cryptocurrency tax season will be chaotic? Privacy Policy. As a financial advisor shortage looms, college programs look to help fill the talent gap.

And the IRS has put the crypto world on notice: You also owe self-employment taxes. This means that whether you sell it for cash, trade it for another cryptocurrency or use at a merchant that accepts it as payment, the difference between what you initially bought it for — your cost basis — and its value upon sale is either a gain or a loss. All Rights Reserved. Digital Original. What to watch out for if you want to jump on the cannabis investing bandwagon Freezing your credit is now free Getting a divorce? The new tax bill will complicate splitting up, especially for women For many investments, individuals generally receive a Form that shows their taxable gains. They're not always tracking that kind of information. For updates and exclusive offers enter your email below. Nearly every transaction is both taxable and potentially a wash sale.

For some users, Bitcoin is a way to avoid government intrusion and illegally evade paying taxes. Those rates range from 0 percent to 20 percent, with higher-income households paying the highest rate. Key Points. But questions remain regarding how to determine the value of currencies at a given time and how to account for events like initial coin offerings, in which companies raise money by selling virtual currencies to investors. There are credit cards tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. Share Tweet Send Share. Whether bitcoin investors' reporting has improved since the earlier IRS study is uncertain. With more people rushing into the cryptocurrency market since late and the subsequent year-long bear market inone accounting envisages a barrage of loss claims in cryptocurrency and Bitcoin tax filings next ethereum supply vs bitcoin supply coingeiko ripple. Christina Comben Apr 15, Nearly every transaction is both taxable and potentially a wash sale. The new tax bill will complicate splitting up, especially for women For many investments, individuals generally receive a Form that shows their taxable gains. By ing ethereum a bitcoin wallet that truly allows unlimited address generation you accept the use of cookies in accordance with our cookie policy.

The Tax Treatment Of Bitcoin And Other Cryptocurrencies

Whether bitcoin investors' reporting has improved since the earlier IRS study is uncertain. Basically, the agency views bitcoin and its brethren as ledger nano s restore seed how do i get my bitcoin off of rippex, not currency, for tax purposes. There are credit cards tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. For updates and exclusive offers enter your email. The form also is sent to the IRS, which gives the agency a way to identify any differences in what's reported google authenticator coinbase poloniex add new coin rule brokerages and taxpayers. Financial advisors are more stressed out than their investor clients, study finds. Squawk Box. We use cookies to give you the best online experience. All Rights Reserved. And the IRS has put the crypto world on notice: But buying any Bitcoin within 30 days before or after selling Bitcoin for a loss may generate a wash sale and then the loss must be folded back into the purchase. More than a decade after bitcoin was first introduced, the IRS has released just one public notice on how to pay taxes on digital holdings. Andrew Osterland.

As a financial advisor shortage looms, college programs look to help fill the talent gap. With bitcoin down more than 50 percent so far this year, there's a chance some investors have triggered or will trigger a tax loss by either selling, trading or spending it. We want to hear from you. Any subsequent gains are taxed at long or short term capital gains tax rates. Commenting on this point, co-founder of the firm, Perry Woodin said:. Get In Touch. But buying any Bitcoin within 30 days before or after selling Bitcoin for a loss may generate a wash sale and then the loss must be folded back into the purchase. If you have a loss, you can use it against gains from the sale of any qualifying asset. Andrew Osterland. Bitcoin Taxes Bitcoin: In an examination of tax returns from to , the IRS found that in each year only about taxpayers claimed bitcoin gains. Therefore, if you have been buying Bitcoin, it is important for you to have kept track of every Bitcoin purchase. Once the Bitcoin is mined and you have paid income tax, it enters your inventory as its own trade lot. However, Woodin declared that such a strategy would mean revealing cryptocurrency holdings hitherto kept from the IRS. Kugelman said some of these intricacies could mean differences of more than six figures for some of his clients when it comes to filing taxes.

However, Woodin declared that such a strategy would mean revealing cryptocurrency holdings hitherto kept from the IRS. With bitcoin down more than 50 percent so far this year, there's a chance some investors have triggered or will trigger a tax loss by either selling, trading or spending it. Highlighting some of the intricacies involved, Ryan said:. VIDEO 4: Once the Bitcoin is mined and you have paid income tax, it enters your inventory as its own trade lot. Cryptocurrency prices experienced a massive surge in late with many of them attaining all-time highs. Again, every rebate creates a purchased trade lot which must be tracked for tax purchases. For a currency intended to make money simple and easy, IRS regulations make it a nightmare of compliance issues. Most Bitcoin owners, however, want to comply with IRS regulations. US lawmakers asked the the Internal Revenue Service how US residents should pay taxes on bitcoin and other cryptocurrencies, in a remarkable letter that shows just how unregulated the cryptocurrency space remains. They're not always tracking that kind of information. And the IRS has put the crypto world on notice: Skip Navigation.

Marotta Wealth Managementa fee-only comprehensive financial planning practice in Charlottesville, Virginia. Nearly every transaction is both taxable and potentially a wash sale. News Tips Got a confidential news tip? It is clear that, with the huge falls in cryptocurrency markets duringmany people will be weighing up whether this is a good opportunity to reveal the losses they have suffered. If you had gains in the past that you didn't report, you can amend affected tax returns. With bitcoin down more radeon 5830 hashrate radeon 6870 hashrate 50 percent so far inthere's does omisego have a product the ceremony zcash chance some investors have triggered or will trigger a tax loss this year by either selling, trading or spending their digital assets. In an examination of tax returns from tothe IRS found that in each year only about taxpayers claimed bitcoin gains. The IRS relies upon the taxpayer to correctly track and pay tax on Bitcoin and other crypto currencies. US lawmakers asked the the Internal Revenue Service how US residents should pay taxes on bitcoin and other cryptocurrencies, in a remarkable letter that shows just how unregulated the cryptocurrency space remains. For many investments, individuals generally receive a Form that shows their taxable gains. This means that whether charting websites crypto top up and coming cryptocurrencies sell it for cash, trade it for another cryptocurrency or use at a merchant that accepts it as payment, the difference between what you coinbase send ether to wallet bitcoin podcast classes bought it for — your cost basis — and its value upon sale is either a gain or a loss. Share to facebook Share to twitter Share to linkedin. The new tax bill will complicate splitting up, especially for women For many investments, individuals generally receive a Form that shows their taxable gains. Share Tweet Accounting for changes in price of bitcoin irs taking bitcoin Share. You can imagine the confusion if you were to be both mining Bitcoin, accepting it as payment, and receiving it as credit card rewards. The new tax bill will complicate splitting up, especially for women. But every time you use such a card it is a taxable event which must be tracked. Those rates range from 0 percent to 20 percent, with higher-income households paying the highest rate. Get In Touch. VIDEO 2:

Even if the IRS doesn't know about your Bitcoin activities you are still responsible for complying with the tax code. If you accept Bitcoin for services you have earned income. We want to hear from you. The new tax bill will complicate splitting up, especially for women. For some users, Bitcoin is a way to avoid government intrusion and illegally evade paying taxes. Highlighting some of the intricacies bitcoin spread desktop bitcoin wallet for mac, Ryan said:. Such individuals will now have to report on virtual currency investments in subsequent tax filings. CNBC requested data from the agency but did not hear back by publication time. Prev Lost passphrase litecoin use ledger nano s with coinbase. All Rights Reserved. Bitcoin Taxes Bitcoin: Most Bitcoin owners, however, want to comply with IRS regulations. Mined Bitcoin must be valued as income at a fair market value the day it is mined. Financial advisors are more stressed out than their clients, study finds.

You owe ordinary income taxes. With more people rushing into the cryptocurrency market since late and the subsequent year-long bear market in , one accounting envisages a barrage of loss claims in cryptocurrency and Bitcoin tax filings next year. Failure to do this might lead to penalties of between 20 to 40 percent. Financial advisors are more stressed out than their clients, study finds. Selling Bitcoin at a loss will generate short or long term capital losses which can be used to offset capital gains. With bitcoin down more than 50 percent so far this year, there's a chance some investors have triggered or will trigger a tax loss by either selling, trading or spending it. Most Bitcoin owners, however, want to comply with IRS regulations. Advisor Insight. For a currency intended to make money simple and easy, IRS regulations make it a nightmare of compliance issues. If you "sell" some Bitcoin at a profit that you purchased within the last year, you will have to report short term capital gains on your tax return and pay ordinary income tax rates.

Advisor Insight. Again, every rebate creates a purchased trade lot which must be tracked for tax purchases. Thousands of initial coin offerings have raised billions of dollars in recent years, making reporting how to create a cryptocurrency exchange current price of steem power cryptocurrency complex. News Tips Got a confidential news tip? But every time you use such a card it is a taxable event which must be tracked. Let us know your thoughts in the comment section. Right now our language for cryptocurrency is 'sloppy', says Congressman Warren Davidson. Reuse this content. You also owe self-employment taxes. Do you think the cryptocurrency tax season will be chaotic? The American Institute of CPAs submitted a letter to the agency several months ago requesting that additional guidance be provided. Topics Bitcoin.

Let us know your thoughts in the comment section below. News Tips Got a confidential news tip? Financial advisors are more stressed out than their clients, study finds. Congressmen are requesting a written response from the IRS outlining plans to issue updated guidance on virtual currencies by 15 May The IRS relies upon the taxpayer to correctly track and pay tax on Bitcoin and other crypto currencies. There are credit cards tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. Sign up for free newsletters and get more CNBC delivered to your inbox. It is clear that, with the huge falls in cryptocurrency markets during , many people will be weighing up whether this is a good opportunity to reveal the losses they have suffered. Kugelman said some of these intricacies could mean differences of more than six figures for some of his clients when it comes to filing taxes. When Are Taxes Due? Prev Next. Last year, bitcoin investors would have been more likely to have gains than losses. Advisor Insight. If you "sell" some Bitcoin at a profit that you purchased within the last year, you will have to report short term capital gains on your tax return and pay ordinary income tax rates. Basically, the agency views bitcoin and its brethren as property, not currency, for tax purposes. But questions remain regarding how to determine the value of currencies at a given time and how to account for events like initial coin offerings, in which companies raise money by selling virtual currencies to investors. Highlighting some of the intricacies involved, Ryan said:. This means that whether you sell it for cash, trade it for another cryptocurrency or use at a merchant that accepts it as payment, the difference between what you initially bought it for — your cost basis — and its value upon sale is either a gain or a loss. Other credit cards offer Bitcoin as the rebate rewards for using the card.

VIDEO 2: This means that whether you sell it for cash, trade it for another cryptocurrency or use at a merchant that accepts it as payment, the difference between what you initially bought it for — your cost basis — and its value upon sale is either a gain or a loss. Hour pay bitcoin define transaction code bryan micon bitcoin when you sell some Bitcoin or use it buy a goodpoloniex short selling coinbase bitcoin fees is important for you to keep track of which trade lots comprised the sale. Therefore, if you have been buying Bitcoin, it is important for you to have kept track of every Bitcoin purchase. Selling Bitcoin at a loss will generate short or long term capital losses which can be used to offset capital gains. News stories sparked many to ask, " Should I invest in Bitcoin? Commenting on this point, co-founder of the firm, Perry Woodin said:. Most popular. Earlier this year, the agency released a notice to remind taxpayers that crypto transactions come with tax implications. Osato Avan-Nomayo May 21, Prev Next. Most Bitcoin owners, however, want to comply with IRS regulations. With the burden of proof for tax filings squarely on the individual, Ryan says those looking to submit crypto-related tax filings should do their proper due diligence. Questions remaining, according to the letter, include how taxpayers should calculate the fair market value of notoriously volatile currencies, how to track exchanges, and how to account for forks in the blockchain, which are fundamental changes to the protocol on which bitcoin and other cryptocurrencies run. US taxation Cryptocurrencies news. Privacy Center Cookie Policy. What to watch out for if you want to jump on the cannabis investing bandwagon Freezing your credit is now free Getting a divorce? Get In Touch. Advisor Insight. Any subsequent gains are taxed at long or short term capital gains tax rates.

Those rates range from 0 percent to 20 percent, with higher-income households paying the highest rate. More from FA Playbook: David John Marotta Contributor. Right now our language for cryptocurrency is 'sloppy', says Congressman Warren Davidson. Therefore, if you have been buying Bitcoin, it is important for you to have kept track of every Bitcoin purchase. For some users, Bitcoin is a way to avoid government intrusion and illegally evade paying taxes. Do you think the cryptocurrency tax season will be chaotic? Get this delivered to your inbox, and more info about our products and services. The same is true if you are mining Bitcoin. And the added confusion if you were also using it on daily basis to purchase your groceries and other expenses.

By agreeing you accept the use of cookies in accordance with our cookie policy. The IRS classifies all cryptocurrencies as property. For many investments, individuals generally receive a Form that shows their taxable gains. Cryptocurrency prices experienced a massive surge in late with many of them attaining all-time highs. The same is true if you are mining Bitcoin. However, Woodin declared that such a strategy would mean revealing cryptocurrency holdings hitherto kept from the IRS. Sign up for free newsletters and get more CNBC delivered to your inbox. Each purchase is considered a trade lot. There are how to send bitcoin to my trezor bitcoin for ios cards tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. Digital Original. There is a lot for individuals to consider when it comes to crypto accounting and their tax returns. Buying Bitcoin is not a taxable event.

With the burden of proof for tax filings squarely on the individual, Ryan says those looking to submit crypto-related tax filings should do their proper due diligence. For a currency intended to make money simple and easy, IRS regulations make it a nightmare of compliance issues. Even if the IRS doesn't know about your Bitcoin activities you are still responsible for complying with the tax code. Any subsequent gains are taxed at long or short term capital gains tax rates. Buying Bitcoin is not a taxable event. My parents started their own firm du Data also provided by. Share to facebook Share to twitter Share to linkedin. Reuse this content. Failure to do this might lead to penalties of between 20 to 40 percent.

More than a decade after bitcoin was first introduced, the IRS has released just one public notice on how to pay taxes on digital holdings. As a financial advisor shortage looms, college programs look to help fill the talent gap. CNBC Newsletters. Despite the confusion, the IRS has suggested it is enacting more aggressive enforcement towards taxpayers who misreport or underpay taxes on digital currencies, according to an April report from Coin Center , a not-for-profit research center focusing on blockchain technology. However, Woodin declared that such a strategy would mean revealing cryptocurrency holdings hitherto kept from the IRS. There is a lot for individuals to consider when it comes to crypto accounting and their tax returns. And the IRS has put the crypto world on notice: This includes historical trading data, proper cost basis, an up-to-date audit trail, etc. Reuse this content. The new tax bill will complicate splitting up, especially for women. There are credit cards tied to Bitcoin accounts where every credit card use sells a tiny amount of Bitcoin to pay for the purchase. Each purchase is considered a trade lot. Meanwhile, since its guidance on the tax treatment of cryptocurrencies, the IRS has not issued further input. During the height of the cryptocurrency bull-run, many investors undoubtedly acquired significant stakes in the market.

If you didn't tell the IRS about your gains from bitcoin or other cryptocurrencies in the past, you might regret it this year. The new tax bill will complicate splitting up, especially for women For many investments, individuals generally receive a Form that shows their taxable gains. Sign up for free newsletters and get more CNBC delivered to your inbox. And the IRS has put the crypto world on notice: Read More. Share Tweet Send Share. How to start your very own cryptocurrency. Questions remaining, according to the letter, include how taxpayers should calculate the fair market value of notoriously volatile currencies, how to track exchanges, and how to account for forks in the blockchain, which are fundamental changes to the protocol on which bitcoin and other cryptocurrencies run. Kugelman said some of these intricacies could mean differences of more than six figures for some of his clients when it comes to filing taxes.