SouthJersey.CPA

These are common tax issues for taxpayers who have exposure to virtual currencies:
1. Switching accounting methods or using different accounting methods for different wallets.
2. Blockchain technology is expected to lead to eventual higher tax audit rates than would exist otherwise.
3. John Doe summons being used by government, matching with disclosure question on form 1040.
4. Loss deduction only after sale, not because it is worthless. (Theft loss or worthless securities deductions do not apply).
5. Incomplete reporting: not reporting all wallets.
6. No deduction of charitable donation without independent appraisal.