Published: February 11, 2021
The gain or loss from a cryptocurrency, such as bitcoin, transaction has to be reported annually. Those transactions may not qualify for capital gains treatment and may be fully taxable. The determination of capital versus income treatment is complex. In some cases, an individual may have some transactions that are capital and some that are income. If you have incorrectly your cryptocurrency trading you are subject to tax penalties and possible tax prosecution. You will be able to avoid prosecutions and penalties by successfully filing a voluntary disclosure.
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
