Bharat Bhise Gives Vital information On Taxes and Bitcoin

Experts like Bharat Bhise are commonly asked about taxes concerning their investments, and it’s no different for discussions in Bitcoin. People want to know if their Bitcoin is taxed, how it’s taxed, and what to declare. A lot of the confusion stems from the fact that as Bitcoin is a “cryptocurrency,” thus it must have taxation procedures similar to regular currency. But it’s not quite as simple as that.

1. How Is Bitcoin Taxed?

For long term investors, they’ll be pleased to know that cryptocurrency and other related assets have excellent tax treatment. The IRS dictates that crypto, in general, is considered as property. Bharat Bhise adds that this also means that you could treat Bitcoin much in the same way as you would stock.

2. What Leads to Taxes?

Certain transactions will incur taxes for Bitcoin. If you mine the Bitcoin yourself and then sell it to a third party, it will be taxed. But even if you sold Bitcoins that you got from someone else, the Bitcoin will be taxed as well. In the same vein, if you use Bitcoins—whether you have mined them yourself or purchased them from a third party—to pay for goods or services, it will be taxed as well. Gains from long-term holding will also have tax.

3. Tax Tips

Bharat Bhise has a few tips for cryptocurrency users. Just like with any accounting, keeping the books on your Bitcoin and Bitcoin transactions is a wise practice. Make careful note of when you acquire it and when you dispose of it, as well as the exchange rate. This method helps you calculate income for tax purposes later on. And of course, you might want to get a tax professional to help you figure out your gains and losses for taxes.

Handling Bitcoin is just like managing any other kind of money, with the only difference being that Bitcoin gets found online. With the right knowledge, Bharat Bhise is confident that even beginners can get into the Bitcoin game quickly.