Morning Fellow Taxpayers,
I was going to write about Triple Net leases and how they generally don’t qualify for the 20% Qualified Business Income Tax Deduction (new §199A); However, Ali said what I wrote was way too complicated for this email. As such, she is going to publish it as a blog. If you or someone you know is a landlord and has tenants on a Triple Net Lease, they need to schedule a consult with their tax advisor or me. It could cost them money.
Now on to this week’s email. One of the most prominent medium of exchanges happening today is what is known as Virtual Currency; it’s in the growing Digital Asset world. But most know it as CryptoCurrency. No matter what you call it, it is a growing field, though lately, not necessarily, profitable. There is very little guidance from the IRS on how to treat CryptoCurrency transactions, except one notice issued in 2014.
If you or anyone you know is involved in this arena, make sure your tax advisor is well versed. Remember, buying crypto is not a transaction reportable to the IRS. However, selling it is, trading in it is and even using it to purchase merchandise or services is.
As you have seen in our posts, newsletters, etc., I have earned the designation of Advanced Crypto Tax- Expert (ACT-E) from the Academy of Crypto Tax. I am sure I can help you or anyone you know (even if they are into “mining”) deal with the complicated tax implication of the Crypto World.
**A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.