LTB #426 Bitcoin Taxes and Real World Scams!

<p><em><strong>This week the hosts of LTB! discuss the US tax treatment of "Virtual Currencies" and how scams find a home wherever opportunity exists, at least for a while.</strong></em></p> <p><em><strong>This episode of Let's Talk Bitcoin! is sponsored by </strong></em><a href="https://brave.com/ltb"><em><strong>Brave.com</strong></em></a><em><strong>, </strong></em><a href="http://etoro.ltbshow.com/"><em><strong>eToro.com</strong></em></a><em><strong> and </strong></em><a href="https://purse.io/"><em><strong>Purse.io</strong></em></a><em><strong>.</strong></em></p> <p>During our first segment, we'll discuss:</p> <p>Virtual Currency Tax Fairness Act of 2020: The proposed legislation would exempt capital gains taxes if any individual transaction results in a capital gain of $200 or less. &nbsp;Previous versions of the bill proposed a $600 cap. If passed, it would take effect in the 2020 tax year. Link - &nbsp;<a href="https://www.govtrack.us/congress/bills/116/hr5635/text/ih">H.R. 5635</a></p> <p>The IRS has a question for you: Tax filers in the U.S. are being asked if <em>At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?</em> Link -<a href="https://www.irs.gov/pub/irs-pdf/f1040s1.pdf">IRS Form 1040</a></p> <p>Yang proposes "Digital Asset Regulation": U.S. Presidential Candidate Andrew Yang wants to Clarify the tax implications of owning, selling, and trading digital assets. &nbsp;&nbsp;&nbsp;Yang says clear policy will allow businesses to invest and innovate in the area without fear of a regulatory shift. Link - <a href="https://www.yang2020.com/policies/digital-asset-regulation/">Yang 2020</a></p> <p><strong>Later on, we'll dig into the "why" of scams as we begin a longer conversation on the topic.</strong></p> <p><strong>Three main points on scams:</strong></p> <ul> <li>Ponzi schemes thrive in disrupted spaces with uncertainty, poor credentialing, and poorly understood complexity</li> <li>The crypto currency space has these a