The U.S. internal revenue service (IRS) published the first in five years, the manual calculation of taxes for the owners of the cryptocurrency, according to CoinDesk.
The new document, the IRS answered a number of questions that were not addressed by the previous management of the Ministry 2014. In particular, it deals with the tax obligations created by the fork, the determination of the value of the cryptocurrency received as income, and the calculation of the taxable profit in the sale of digital assets.
The IRS has determined that a new cryptocurrency created by the fork should be treated as “ordinary income equal to the fair market price” at the time of receiving the asset. Tax liabilities arise as soon as new coins are recorded in the blockchain. These rules are related to the assets acquired as a result of airdrop.
The experts noted some unpleasant consequences of the new rules. The tax reporting obligations for owners of cryptocurrencies can now create third parties, just after a fork network, the coins owned by the taxpayer. In addition, the owner of the cryptocurrencies may not be aware of the ramification of the network or conducted airdrops.
The IRS document also explained the definition of the reference value or the fair market value of the cryptocurrency received as income, for example, when mining. The base cost must be calculated by summing all costs in us dollars, including “fees, commissions and other acquisition costs”.
Another key issue considered by the IRS in the new leadership, was to determine the base cost of each unit of the cryptocurrency, which is involved in a taxable transaction, such as selling. The owner of the cryptocurrency could buy parts and the sale of the number was unclear what the purchase price be used to determine taxable income.
Under the new guidelines the IRS, taxpayers can identify coins sold with specific office of the special data.
We will remind, in the summer the IRS sent out letters to more than 10 thousand investors with the requirement to report income from transactions in the cryptocurrency.