Question of the Day: What type of currency are taxpayers now required to disclose on their 2020 tax return?
- What do you know about cryptocurrencies (e.g. bitcoin)?
- Do you think that having the IRS now require disclosure of cryptocurrency holdings means that it is becoming more mainstream?
- Bitcoin, a type of cryptocurrency, has risen from $8,000 to $37,000 over the past year. When you see an investment increase that much does it make you even more eager to buy it? Why or why not?
Behind the numbers (CNBC):
Indeed, the front page of the individual income tax return, aka Form 1040, asks a yes or no question: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
Looking for more on cryptocurrencies? Here's NGPF resources on the topic.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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