Arizona income tax bitcoin
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Bitcoin rally generates fear of missing out, but smart play may be in staying away. What to know about investing in Bitcoin and other cryptocurrencies. Ducey wants state to hire tax collectors.
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Arizona could become first state in the U. Ryan Randazzo The Republic azcentral. Show Caption. Hide Caption. What is Bitcoin? A motion graphic explains what Bitcoin is and how Bitcoin works. Keith Carter and Ashley M. The Building Blocks of Bitcoin.
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The Bitcoin phenomena experiences both record highs and lows this week, but…uhh, what the heck is it again? Phoenix nonprofit accepts first bitcoin donation.
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Barrow Neurological Foundation receives its first donation in the form of digital currency to further memory research. It depends on how long you held the bitcoin and whether you sold it for a profit or a loss.
If you owned your bitcoin for more than a year, you will pay a long-term capital gains tax rate on your profit, which is determined by your income. This IRS worksheet can help you do the math. If you owned your crypto for less than 12 months, the taxes you pay will be the same as your normal income tax rate. If you sold your crypto for a loss, there's some good news.
› /02/10 › arizona-bitcoin-taxes. Also, as a surprise to many, Cryptocurrencies aren't just a currency replacement, although some such as Bitcoin are designed for that, so we have what's known as.
A profit of any amount needs to be reported to the IRS. For the first time, this tax season's form includes a question about virtual currencies on the front page asking taxpayers if "at any time during , did [they] receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Indeed, the cryptocurrency question is the first item on the form, just below the individual's contact information.
In the past, taxpayers may have been able to feign ignorance about their obligation to report crypto gains, but that won't fly anymore. Spending your bitcoin isn't all that different from selling it in the eyes of the IRS, especially if your holding has greatly increased in value since you first purchased it.
The IRS website states that "the use of virtual currencies to pay for goods or services.