There is currently no standard accounting practice when it comes to cryptocurrency. As of now, it is not considered an actual currency that can be used to determine gains or losses under a tax law. However, it is a growing reality that cryptocurrency is more than likely here to stay, as millions continue investing into this market. Greenlight Financial is equipped to assist individuals with virtual currency when it comes to tax time.
When it comes to filing taxes and taking into account virtual currency, the fair market value of the crypto must be must be considered as taxable income when used to pay for goods and services.
Fair Market Value is determined by the US $ amount of the virtual exchange at the date of acquisition. A record of value at time of purchase and time of spend must be kept to accurately calculate gains and losses.
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