2019 Frequently Asked Questions (FAQs) regarding taxpayers holding Cryptocurrency as capital assets

On October 9, 2019, the IRS announced the following Frequently Asked Questions (FAQs) that apply to taxpayers, who hold Cryptocurrency as a capital asset. 

Almost everything you own and use for personal purposes, pleasure, or investment is a capital asset. For example (1) Stocks and bonds, (2) A home owned and occupied by you and your family, (3) Household furnishings, (4) A car used for pleasure or commuting, (5) Coin or stamp collections, (6) Gems and jewelry, (7) Gold, (8) silver, (9) and other metals, (10) Timber grown on your home property or investment property, (11) even if you make casual sales of the timber, (12) Personal-use property, (13) Generally, property held for Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible. You can deduct a loss relating to personal-use property only if it results from a casualty or theft, subject to limitations under the 2017 New Tax law.

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Zaher Fallahi, Los Angeles Tax Attorney, CPA, advises cryptocurrency owners with income tax, FBAR and FATCA, nationwide.

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