Digital Currencies are the new Topic’s everyone searching for, in this new era of community. Now a days there’s hardly any news source left not reporting on the crypto world. Be it be the news related to crypto markets, current prices, future predictions or the crypto regulations, cryptocurrencies are the new top related searches on Google, Yahoo or Bling.
After the massive crypto market uplift in 2017, many local and international regulatory authorities are keeping a sharp eye on its success including IRS. There’s only one way to avoid coming into the eyes of IRS with the currency. You might find that the yellow brick road doesn’t lead to the wizard you were promised.
Currently, the only way for your virtual currencies not to be taxed is by giving and receiving it as a gift. That’s right, no income tax on gifts. Don’t call your boss just yet to tell her you want all your checks as “gifts” from now on. The IRS doesn’t have a brain made from straw. The gift has to actually be a gift, and the IRS hears this excuse all the time. They’re seasoned at exposing fakers. It also makes no sense if the gift doesn’t occur in a gift-giving setting. You and your boss won’t get away with it.
Besides, if your gift is worth over $15,000 it is subject to the gift tax return at the very least. And forget about leaving a tax-free fortune to your kids. The most a single parent can leave behind tax-free is $11.2 million.
Contrary to popular belief, Bitcoin isn’t a tax-free, super rich kind of thing and can’t hide behind the curtain forever.