Crypto Transact 99 is an enabler who will accelerates tax (Capital Gains & Income Tax) calculations and accounting statements such Balance Sheet, Income Statement by combining Crypto transaction with sovereign currency transaction. The platform is flexible to just consolidate only Crypto transaction as well.
The Crypto Transact 99 Financial Operating SystemTM—underpinned by an end-to-end technology platform and supports Transaction retrieval, Data Harmonization and Evidence creation.
The IRS focuses on cryptocurrency for two primary reasons: trading cryptocurrency is a taxable event and converting cash into virtual currency is a way to launder money.
This focus resulted in the IRS releasing guidance on the reporting and taxation requirement for the sale, purchase, and trade of cryptocurrency—but some grey areas remain.
To help you understand the tax implications of cryptocurrency, our article will address:
Exchanging Cryptocurrency for Other Cryptocurrency Taxpayers commonly used to ask the question whether cryptocurrency exchanged for other cryptocurrency without USD ever received was a taxable event. The short answer is yes, the IRS appears to view these exchanges as taxable events.
IRC Section 1031, known as the like-kind exchange rules, used to apply to real and personal property, however, the rules changed in 2018 to apply only to real property. Real property is land or any permanent fixtures attached to that land; personal property isn’t permanently affixed to either.
Even before the updated rules, it was considered an aggressive approach to apply them to cryptocurrency. Now that they’re only allowed for real property, it’s clear a taxpayer can’t utilize Section 1031 to defer a crypto-to-crypto exchange.