Posts Tagged ‘Individual’

Q&A with virtual currency Q1: What is cryptocurrency?A1: Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain. A transaction involving cryptocurrency that is recorded on a distributed ledger is referred to as an “on-chain” transaction; a transaction that is…

Qualifying for DeductionTo take a business deduction for home office expenses, you must use your home under one of the following scenarios.• You have an area in your home that is regularly and exclusively used as your principal place of business.• You have an area in your home where you regularly and exclusively meet with…

Q&A with virtual currency Q1: The 2021 Form 1040 asks whether at any time during 2021, I received, sold, exchanged, or otherwise disposed of any financial interest in any virtual currency. During 2021, I purchased virtual currency with real currency and had no other virtual currency transactions during the year. How do I answer the…

Capital AssetsMost property you own and use for personal or investment purposes is a capital asset. For example, a house, furniture, car, stocks, and bonds are capital assets.Noncapital AssetsA capital asset is any property held by you except the following.• Stock in trade or other property included in inventory or held mainly for sale to…

High-Income Taxpayers In addition to higher federal tax rates, taxpayers whose in-come exceeds certain levels may have reduced or eliminated tax deductions and credits.The provisions listed may have additional qualifications or restrictions. Other provisions of the tax code can further re-strict certain deductions or generate increased taxes. Ask your tax professional for more details. Taxes…

Get ready for tax filing season 2026! As tax filing season approaches, the IRS Get Ready campaign reminds taxpayers of simple steps they can take now to get ready to file their 2025 federal tax returns. As the IRS continues its digital transformation, it’s making filing easier for taxpayers by providing new online tools as…

Capital Gains and Losses Capital AssetsMost property you own and use for personal or investment purposes is a capital asset. For example, a house, furniture, car, stocks, and bonds are capital assets.Noncapital AssetsA capital asset is any property held by you except the following.• Stock in trade or other property included in inventory or held…

Q&A with virtual currency Q1: Will I recognize a gain or loss if I exchange my virtual currency for other property?A1: Yes. If you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss. For more information on…

Q&A with virtual currency Q1. One of my cryptocurrencies went through a hard fork, but I did not receive any new cryptocurrency. Do I have income?A1. A hard fork occurs when a cryptocurrency undergoes a protocol change resulting in a permanent diversion from the legacy distributed ledger. This may result in the creation of a…

Q&A with virtual currency Q1: Do I have income if I provide someone with a service and that person pays me with virtual currency?A1. Yes. When you receive property, including virtual currency, in exchange for performing services, whether or not you perform the services as an employee, you recognize ordinary income. For more information on…