Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
Bitcoin investors may want to forget 2018. First, they should file their taxes.
"[Last year] was essentially a blood bath for most crypto investors," said Tyson Cross, a tax attorney in Reno, Nevada.
The digital coin began last year trading at around $15,000, compared with $3,400 today.
Their reasons for staying quiet? Not knowing if they can deduct their losses, or believing they don't have to.
"Taxpayers didn't [used to] report their Swiss bank accounts," Ozelli said. "These crypto traders could be following the same logic."
Or, some could be trying to save time, Cross said. "Crypto investors probably think it's easier to file their tax return without the crypto losses," he said.
The bottom line, however: "Taxpayers must report any and all asset sales, including sales of crypto," Cross said.
That's because the IRS has no way of knowing whether your sale resulted in a gain or a loss "unless you specifically report it that way on your tax return," Cross said.
Failing to report your losses and gains could have big consequences, said Kevin F. Sweeney, a former federal tax prosecutor and an attorney at Chamberlain Hrdlicka in Philadelphia.
"The IRS has been unequivocal in its intent to crackdown on unreported crypto and is beginning to acquire the records and resources to go after noncompliant taxpayers," Sweeney said.
Indeed, there's now a virtual currency team at the IRS. And the agency hired a cryptocurrency software company called Chainalysis to "trace the movement of money through the bitcoin economy," according to a contract obtained by the Daily Beast.
Cryptocurrencies, just like bonds or stocks, are taxed at your capital gains rate, which is calculated by subtracting the cost of the asset at time of purchase from the amount at which it was sold. That difference is typically levied at between 15 and 20 percent, depending on your overall income. (If you've held the cryptocurrencies less than a year, gains are taxed at your normal income rate.)
This transaction report goes on Form 8949 of your tax return, which then becomes part of Schedule D. Cross recommends that investors use one of the cryptocurrency software services that help people calculate their losses and gains, such as Bitcoin.tax or Cointracking.info.
Losses, on the other hand, can be used to offset capital gains from other types of assets, such as stocks or real estate. Up to $3,000 of the investor's net loss can be deducted against ordinary income, Cross said.
Lost more than that? You can continue to write off your losses in the following years.
"It would take 166 years to recoup a capital loss of $500,000 if the investor never had any other capital gains and ended up only taking the annual $3,000 deduction against ordinary income," Cross said.