Bitcoin is a decentralized digital currency that has gained in popularity since its debut in 2009. Bitcoin, and other cryptocurrencies, have attracted investors looking for an alternative to traditional physical currency.
While your clients may want to invest in Bitcoin to further diversify their portfolio, there are numerous tax implications that accompany owning such an asset.
Are you advising your clients correctly when it comes to their investments in digital currencies?
In the gallery above are eight important tax and financial planning questions and answers advisors should be aware of regarding the taxation of Bitcoin, according to ALM’s Tax Facts Online and the Internal Revenue Service.
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