US Internal Revenue Service has expectedly released the tax guideline for the holders of the cryptocurrencies. The document has become the first taxation rules for this area for over 5 years.
With the new edition, the authority managed to cover the issues that were not considered by the previous guideline released in 2014. In particular, the document provides tax obligations entailed by forks, cost assessment for crypto received as a profit and taxation for crypto sales.
"The new guidance will help taxpayers and tax professionals better understand how longstanding tax principles apply in this rapidly changing environment. We want to help taxpayers understand the reporting requirements as well as take steps to ensure fair enforcement of the tax laws for those who don't follow the rules," said IRS Commissioner Chuck Rettig.
As for new coins, it was stated that the new cryptos after the fork must be classified as an ordinary income and become subject to taxation once new coins are recorded in the blockchain. Notably, airdrop assets enjoy similar rules.
At the same time, the new rules are said to bring some negative impact. In particular, taxes can be summoned by 3-rd parries via forks of the cryptos held by a taxpayer.
In addition, the IRS provided the assessment of the basic cost or fair market price for cryptos received as an income (e.g. after mining).
Earlier, some investors received requests from the IRS to report their income from crypto activities.