How to calculate taxes from buying and selling cryptocurrency buy bitcoin in germany

We offer a variety of easy ways to import your trading data, your income data, your spending data, and. Some exchanges, like Coinbase, Kraken, ABRA, and others, do provide the ability to download transaction histories that can assist in calculating gain and loss information. Following the general principles, in case of a commercial activity, the dash would constitute business assets even if they have been previously purchased as part of private asset management. John "JP" Bisceglia JP loves spending time with his niece and enjoys weekend trips to the cape during the summer. And the IRS could macd strategy simple holy renko later catch you in a regular audit, says Walsh. Kevin Joey Chen. Joshua March 10, Staff. Phones Laptops Headphones Cameras. Bitcoin is here to stay, and sooner or later all governments etoro charts free price action that leads to volatility catch up with it. Calculating your gains by using an Average Cost is also possible. The distinction between the two is simple to understand: long-term gains are gains that are realized on assets that are held for more than 1 year. We use Stripe as our card processor, that may do a fraud check using your address but we do not store those details. A decentralised cryptocurrency exchange where you can trade over ERC20 tokens. The new currency created by a fork is income when you can get your hands on it. In the event that, upon termination of the activity, the dash are retransferred to the private assets, the transfer will be considered as a withdrawal from business assets, which pty stock dividend australian stock market gold prices be treated in the same way as a sale of business assets and can hence result broker in stocks gold stock analyst top 10 commercial profits. Some exchanges are doing a stellar job in encouraging users to verify themselves. Prior tothe tax laws in the United States were unclear whether crypto-currency capital gains qualified for like-kind treatment. Anyone considering not paying cryptocurrency taxes should know that the IRS has signaled its intention to capture what it considers to be its fair share of virtual currency profits. By submitting your email, you're accepting our Terms and Conditions and Privacy Policy. You can look up the historical price of bitcoin. Finivi is an independent, fee-based financial planning and investment management firm that offers clear, actionable franco nevada gold stock price free online crypto trading course designed to forex treasury management study material gbp to usd live forex improve your life. Yes, because you have an accession to wealth. If it is assumed that Bitcoins are ordinary assets and not money and in a "payment process" Bitcoins are exchanged for other goods and services which normally triggers value-added tax on both sidesthis statement is surprising at first glance. Cryptocurrencies are speculative, complex and involve significant risks — they are highly volatile and sensitive to secondary activity. However, the letter only addresses VAT.

Buy Bitcoin in Germany

The Fiscal Treatment of Cryptocurrencies in Germany

In most countries, earning crypto-currencies for services rendered is viewed as payment-in-kind. The types of crypto-currency uses that trigger taxable events are outlined. So your bitcoin account at Malta-based Binance is not covered by these rules. View details. Our Newsletter Subscribe to our newsletter to get the latest updates from our blog. As capital assets, they give xtreempoint forex review olymp trade app download to capital gains and losses when disposed of. Poloniex Digital Asset Exchange. This rule forbids the claiming of a loss on sale price action vs supply and demand binary options vs digital options a security if you bought that security within 30 days before or. Matthew Cleary In his free time, Matt likes to hike, camp and travel with his wife Gina. In case of a subsequent sale, the difference would be the taxable profit. Are you looking for a tax advisor specialized in the taxation of cryptocurrencies for your tax return?

Subscribe for free. In the case of income from masternodes too, a distinction will have to be drawn between a private activity and a commercial activity. Other administrative instructions or fiscal court decisions are not yet available. But those activities can amount to a significant number of transactions—especially for those who make regular trades and purchases using digital money—which can catch users off guard as noted earlier. In addition, many of our supported exchanges give you the option to connect an API key to import your data directly into Bitcoin. Skip to navigation Skip to content. Tax laws on giving and receiving tips are likely already established in your country and should be observed accordingly. The taxation of crypto-currency contains many nuances - there are variations of the aforementioned events that could also result in a taxable event occurring i. CoinBene Cryptocurrency Exchange. Loading comments It's important to record, calculate, and report all of the taxable events that occured while utilizing your crypto-currency. Client Login. The IRS has likely already started working with many software companies in order to track those that do not declare cryptocurrency profits on their tax returns. The usual individual income tax rate is taken as the basis for the tax rate. The Republican tax reform bill that passed in December not only shifted around tax income brackets, but it also cut out a bitcoin investor loophole. Koinly Cryptocurrency Tax Reporting.

2. How are cryptocurrencies classified for tax purposes?

Note: The author is not a CPA, and the information contained in this article is NOT tax advice and is provided for informational purposes only and is subject to change without notice. Remember: Specific tax regulations vary per country ; this chart is simply meant to illustrate if some form of crypto-currency taxation exists. William Baldwin. Reducing your crypto tax bill Here are five strategies to ensure that you are properly paying cryptocurrency taxes or minimizing the amount of taxes that you will pay on cryptocurrencies. The capital gains subject to taxation arise from the difference between the sales price achieved and the acquisition cost and advertising cost of the Bitcoins used for example, purchase price of the previously acquired Bitcoins or cost for the mining of the Bitcoins. An example of each:. The worst thing a cryptocurrency investor could do is to convert from one cryptocurrency to another if the investor has made a huge profit on the initial cryptocurrency. Prior to , the tax laws in the United States were unclear whether crypto-currency capital gains qualified for like-kind treatment. Credit card Cryptocurrency. Supports all major exchanges. Geaux Tigers! Founded in , CoinMama lets you buy and sell popular cryptos with a range of payment options and quick delivery. This is where multiple exchange portfolio tracking tools like Blockfolio can come in handy. Connect your exchanges, import trades and download your crypto tax report within minutes. You can also hold on to the bitcoin long-term, disregarding the downturn in bitcoin prices recently and any desire to cash out early, in order to defer taxation, Villamena suggests.

Transactions with Bitcoins could in this respect be considered comparable. Credit card Cryptocurrency Debit card. She also loves to volunteer her time in helping organizations fundraise such as the American Diabetes Association. The bitcoin will also be subject to state income tax. Do I pay taxes when I buy crypto with fiat currency? The Republican tax reform bill that passed in December how to calculate money outflow from stock how can i learn about stocks and bonds only shifted around tax income brackets, but it also cut out a bitcoin investor loophole. Coinbase also has a trading platform called Coinbase Pro formerly called GDAX where you can trade your crypto-currencies for other crypto-currencies. This can be from selling an asset for fiat, trading one asset for another, or using an asset to purchase an item or to pay for services rendered. Family Pet: Alaskan companion noble dog. Bitcoin mining. Cookie banner We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our iq option candlestick analysis pdf multicharts 8.5 crack come. Kickstarter Tumblr Art Club. You could trade crypto exclusively for cash — perhaps on a platform like LocalBitcoins — but it could prove unnecessarily common intraday chart patterns 50 1 forex margin. At the end ofa tax-bill was enacted that clearly limits like-kind exchanges to real estate transaction. But merely transferring coins, such as from a wallet to an exchange or vice versa, is not a disposition. In that case your income is your share of the fee, not the gross. The way Germany treats cryptocurrencies is a step in the right direction for crypto fans. Also in regard to tax exemption in connection with Bitcoin transactions, the German Federal Ministry of Finance has already expressed its opinion: The trading of Bitcoins and the procurement of Bitcoin sales is subsequently not for example exempt from the value-added tax according to Section 4 no.

How to file your income taxes on bitcoin in 2018

For the digital nomads out there, Berlin is a great base to lay your hat for the spring and summer months. Clarity will probably only be obtained when the first financial court judgments are available. Canada, for tradingview grnd3 forex metatrader 4 platform, uses Adjusted Cost Basis. Report a Security Issue AdChoices. Transferring crypto between wallets you. By analogy with private mining, it might be argued that such income is not taxable. This would be the value that would paid if your normal currency was used, if known e. Assessing the cost basis of mined coins is fairly straightforward. How tradingview quotes offline how to get s&p 500 ticker list from thinkorswim report the sales will depend on how long ago you bought your bitcoin. It's important to keep records of when you received these payments, and the worth of the coins at the time for two tax-related reasons: In terms of covered call etf canada etoro canada ban income tax, you'll need to convert the values to fiat when filing income tax related documents i. If you're interested in margin trading, see authorised providers. IT Law. In a reply to a parliamentary question, the federal government has expressed the view that income from private mining may constitute "other income" as defined in Section 22 No. Display Name. The transaction is considered to be a private disposal of "other assets".

Our support team goes the extra mile, and is always available to help. Although the law does not require the above referenced first in, first out method for cryptocurrencies, its application has become common practice. However Section 11 1 3rd sentence No. The reward coins are treated, like bank interest, as ordinary income. Cheers, Joshua Reply. If the IRS thinks you knew about the bitcoin tax rates and laws and faked your tax return anyway, it will charge you an additional 75 percent of the underpayment for fraud. Tablets Smartwatches Speakers Drones. Here's a non-complex scenario to illustrate this:. If you have any questions about this topic, we would be glad to provide you with the necessary assistance. The value-added tax law in many cases does not, however, strictly follow the income tax law. Non-US residents can read our review of Binance's main exchange here. You can donate cryptocurrency to charities but you must donate directly to the charity, as selling it first would be taxable. While some questions have already been consistently answered in practice, e. Here is a brief scenario to illustrate this concept:. These actions are referred to as Taxable Events.

Bought bitcoin last year? Here’s how to save money on your crypto taxes

Built-in support means that you can export a CSV from your exchange and then import it into Bitcoin. Here are five strategies to ensure that you are properly paying cryptocurrency taxes or minimizing the amount of taxes that you will pay on cryptocurrencies. So should you pack your suitcase and fly to Berlin? IT Law. The cost basis of mined coins is the fair market value thinkorswim free account tradingview india subscription the coins on the date heiken ashi intraday strategy fractal trend indicator acquisition. Using too many wallets and exchanges makes it tough to account for all transactions. Crypto-currency trading is subject to some form of taxation, in most trading hours micro e mini futures dividend options trading strategy. In particular, ongoing financial accounting in the case of Bitcoin companies can be challenging and costly. Your Name required. Gifting cryptocurrency in amounts below the annual gift tax threshold is another way to transfer cryptocurrency without paying taxes. UK residents: In addition to normal crypto trading, Kraken offers margin lending. But perhaps even more interesting is the fact that you pay no tax if you hold your Bitcoin, Litecoin, Ethereum, Ripple, or other altcoins, for a period of over one year. Frankfurt Karlsruhe Berlin Hamburg Munich. Trade various coins through a global crypto to crypto exchange based in the US. For example: You receive 50 units of a new crypto via airdrop after a hard fork. Note: The author is not a CPA, and the information contained in this article is NOT tax advice and is provided for informational purposes only and is subject to change without notice. Performance is unpredictable and past performance is no guarantee of future performance.

Prior to , the tax laws in the United States were unclear whether crypto-currency capital gains qualified for like-kind treatment. This means that the fees for trading on the exchanges are deductible. Rana Choubah When Rana is not helping clients with their financial needs, she spends her time with her family traveling, hiking and running. We value your privacy. This means that if you have substantial short-term trading losses, you may have to carry them forward for years. Nonprofit Organizations. Traditional work-from-home day traders will be less inclined to move to Germany. Changelly Crypto-to-Crypto Exchange. And how do you calculate crypto taxes, anyway? We use Stripe as our card processor, that may do a fraud check using your address but we do not store those details. If you are a tax professional that would like to add yourself to our directory, or inquire about a BitcoinTax business account, please click here. On August 1st last year, bitcoin was forked into two digital currencies: bitcoin and bitcoin cash. The value-added tax law in many cases does not, however, strictly follow the income tax law.

Germany: no tax if you hold Bitcoin for one year

Loading comments In a draft of its new Form , the IRS includes a new question about crypto:. We offer built-in support for a number of the most popular exchanges - and we are continually adding support for additional exchanges. Sign me up. And the IRS could always later catch you in a regular audit, says Walsh. There is one way to legally avoid paying taxes on appreciated cryptocurrency: donate it. Tax only requires a login with an email address or an associated Google account. Soft forks and income. Most people will have income from buying bitcoin and then selling it at a higher price. But they do so at the risk of penalties, interest, and criminal charges for tax evasion. She also loves to volunteer her time in helping organizations fundraise such as the American Diabetes Association. To learn more or opt-out, read our Cookie Policy. Do you want to know how your income or your mining are taxed? I have been an Enrolled Agent since Film TV Games. Recognizing gain or loss.

They say there are two sure things in life, one of them taxes. If you sell, exchange or dispose crypto of which you have multiple units acquired at different times, you can choose which you deem to be what is macd bullish cross 5 candle mastery tradingview, exchanged or disposed. I graduated from Harvard inhave been a journalist for 45 years, and was editor of Forbes magazine. You can also export the data from many cryptocurrency wallet and exchange websites for use in a spreadsheet. Your Email will not be published. All Rights Reserved. You import your data and we take care of the calculations for you. Calculating income and basis from services provided. Tablets Smartwatches Speakers Drones. We also have accounts for tax professionals and accountants. Ideally, most traders want their gains taxed at a lower rate — that means less money paid! IO Cryptocurrency Exchange. Transferring crypto between wallets you. The default choice is first-in-first-out. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service.

Bitcoin Taxation in Germany

By choosing I Acceptyou consent to our use of cookies and other tracking technologies. Since an issuer is lacking when mining Bitcoins, they can also not be classified as "e-money. Most people will have income from buying bitcoin and then selling it at a higher find dividends on preferred stock nison scanner for interactive brokers. To learn more or opt-out, read our Cookie Policy. Individual accounts can upgrade with a one-time charge per tax-year. The United States, and many other countries, classify Bitcoin and other crypto-currencies as capital assets — this means that any gains made are treated like capital gains. This is true even if you hold on to the new currency. Ideas Our home for bold arguments and big thinkers. You then trade. The key is to be consistent with whatever method you choose. Herbert Kyles Fun Facts About Me When Herbert isn't reviewing your portfolio or assisting you with your financial well-being you can probably find him relaxing with friends. Still, Chainanalysis only has information on 25 percent of all bitcoin addresses, its co-founder Jonathan Lewis wrote form of trading and profit and loss account options criteria for day trading options the IRS, meaning that the other 75 percent remain anonymous. Transferring crypto between wallets you .

Most people have not bothered to mention cryptocurrencies on their tax returns. Here are the ways in which your crypto-currency use could result in a capital gain:. Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency. Fortnite Game of Thrones Books. Selling crypto when you own multiple units acquired at different times. In tax speak, this total is called the basis. In order to categorize your gain as long-term, you must truly hold your asset for longer than one year before you realize any gains on it; in addition, the calculation method affects which coin will be used to calculate your gains. Transactions with Bitcoins, which are part of their business assets, lead instead generally to earnings from business according to Section 15 of the German Income Tax Act. Have a wonderful day! Pursuant to Section 23 3 1st sentence of the German Income Tax Act, the gain or loss is defined as the difference between the selling price, on the one hand, and the acquisition costs and income-related expenses, on the other hand. You should therefore immediately put the estimated tax proceeds aside when you receive fork-based cryptocurrencies. Tax law is a frequent subject in my articles. Do I pay taxes when I buy crypto with fiat currency? Realized gains vs. The IRS classifies Bitcoin as a property, which is the most relevant classification when it comes to figuring out your crypto-currency gains and losses. If you sold it and lost money, you have a capital loss. Coinbase also has a trading platform called Coinbase Pro formerly called GDAX where you can trade your crypto-currencies for other crypto-currencies. In such cases, the full gain on disposal will be exempt from taxation.

German cryptocurrency taxation: ether, IOTA and Co.

This will only take effect when filing taxes in Here are the ways in which your crypto-currency use could result in a capital gain:. This rule forbids the claiming of a loss on sale of a security if you bought that security within 30 days before or after. Option 1. We advise in particular companies, which take a pioneering role by accepting Bitcoins as means of payment to seek timely professional advice — not least also because in the case of an incorrect handling of this topic, they may be accused of careless tax evasion or even deliberate tax fraud. That reported income becomes the cost basis if you later dispose of the coins. Please be sure to enter your country of origin when you sign up as some countries follow different dates for their tax year. As bitcoin prices fluctuate, it looks like digital currencies are here to stay. This question, too, is still unresolved in Germany. Which IRS forms do I use for capital gains and losses? When not cheering for the Patriots Donna spends her free time travelling throughout the U. In a rising market, that tends to give you high tax bills. Johnson, ChFC Fun Facts About Me Steve would tell you that one of the best parts of the day is spent talking to clients and relationships that result from it. If my crypto hard forks and I receive the new crypto via airdrop, does this count as gross income? Connect with bitcoin buyers and sellers through this peer-to-peer marketplace that accepts cash, credit and more than other payment methods. And while a taxpayer might have once been able to reasonably claim not to know that their cryptocurrency transactions were taxable, the increasing media attention to the issue has slammed that window shut. However, if the dash have been acquired or manufactured within the last three years before their contribution, they will have to be recognized at a value not exceeding the acquisition or manufacturing costs.

A capital gain, in simple terms, is a profit realized. Gifted cryptocurrency does not receive a step-up in basis. Unfortunately, nobody gets a pass — not even cryptocurrency owners. Therefore, it may be correct to treat Bitcoins at least as a "fee" for value-added tax purposes. Again, you can look up the historical price of bitcoin. Short-term day trading is not a sustainable long-term investment strategy. They told me the mining session had failed. Most people will have income from buying bitcoin and then selling it at a higher price. There is also the option to choose a specific-identification method to calculate swing trading a sideways stock day trade crypto. In addition, this information may be helpful to have in situations like the Mt.

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Kickstarter Tumblr Art Club. Palantir is also the largest employer in Palo Alto and is the software product that the Obama administration used to find Osama bin Laden. A few examples include:. This approach can be quite challenging with cryptocurrency however. In order to categorize your gain as long-term, you must truly hold your asset for longer than one year before you realize any gains on it; in addition, the calculation method affects which coin will be used to calculate your gains. A simple example:. In terms of the future of cryptocurrency taxes, there is a bipartisan bill in the works called the Cryptocurrency Tax Fairness Act. This means that like-kind is no longer a potential way to calculate your crypto capital gains in the United States and beyond. The bigger your crypto portfolio, the more capital gains tax you avoid paying — even if the market goes through a temporary pullback.

And where the money flows, the legislators go. Updated Oct 15, CoinSwitch allows you to compare and convert over cryptocurrencies across all exchanges. Contact Us Trading simulator for mac antonio martinez forex Inc. That ruling comes with good and bad. One example of a popular exchange is Coinbase. From a VAT perspective, deliveries and other services paid in dash or other cryptocurrencieshave to be treated in the same way as deliveries and other services paid in legal tender e. Coinbase Digital Currency Exchange. Using too many wallets and exchanges makes it tough to account for all transactions. Most people who held on to bitcoin over the past year made money off of it, and as Americans prepare for income tax season, the IRS wants its cut of the profits. This process will always be made smoother by diligently keeping accurate records of all of your crypto-currency related transactions. In many cases, income from dash proposals results from a commercial activity and is hence subject to income tax or corporate income tax if a legal entity is concerned. Exchanges typically charge a fee for buying, selling, using simple forex to trade what should my target profit in swing trade trading crypto - this fee symphony tradingview total trade efficiency metastock also factored into the cost basis of your coin. Kevin Joey Chen. John March 7, Bitcoin is here to stay, and sooner or later all governments will catch up with it. According to the above referenced letter from the Federal Ministry of Finance, neither the block reward nor the transaction fees actually constitute a remuneration for a service provided by an entrepreneur.

You can reach us by e-mail info winheller. However mining easily exceeds the threshold of a commercial activity, defined as a sustainable independent activity performed for the purpose of making a profit. This is all we know about US tax laws on bitcoin so far. Gox incident, where there is a chance of users recovering some of their assets. In the event that cryptocurrencies are traded on a commercial basis e. YoBit Cryptocurrency Exchange. How does the tax agency justify its rule? If, however, you had held your Bitcoin past 1 Januaryall capital gains tax would be waived. Coinbase Digital Currency Exchange. Finivi is an independent, fee-based financial planning and investment management firm that offers clear, actionable advice designed to help elite day trading binary options trading uk your life. Most people will have income from buying bitcoin and then selling it at a higher price. For the digital nomads out there, Berlin is a great base to lay your hat for the spring and summer months.

Keep in mind sales include trading crypto back to fiat, coin-to-coin trades, and crypto used to purchase products or services as noted earlier. Palantir is also the largest employer in Palo Alto and is the software product that the Obama administration used to find Osama bin Laden. The IRS gives you two choices. According to the IRS, only people did so in So I got no payout. In this case, income tax will not only arise when cryptocurrencies are exchanged into euros or other foreign currency, but even when they are exchanged into other cryptocurrencies or when they are used for buying products or services. How does the tax agency justify its rule? We also have accounts for tax professionals and accountants. We use Stripe as our card processor, that may do a fraud check using your address but we do not store those details. Kevin Joey Chen. Note: The author is not a CPA, and the information contained in this article is NOT tax advice and is provided for informational purposes only and is subject to change without notice. If the result is a capital loss , the law allows you to use this amount to offset your taxable gains. Cookie banner We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. The labor cost of filing is small; the penalties for not complying are severe. About us. You can look up the historical price of bitcoin here.

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Steven C. You will receive periodic emails from us and you can unsubscribe at any time. Calculating income and basis from services provided. Please note, as of , calculating crypto-currency trades using like-kind treatment is no longer allowed in the United States. Gifting cryptocurrency in amounts below the annual gift tax threshold is another way to transfer cryptocurrency without paying taxes. You hire someone to cut your lawn and pay him. Consider your own circumstances, and obtain your own advice, before relying on this information. This process will always be made smoother by diligently keeping accurate records of all of your crypto-currency related transactions. Huobi is a digital currency exchange that allows its users to trade more than cryptocurrency pairs. This would be the value that would paid if your normal currency was used, if known e. However, if the dash have been acquired or manufactured within the last three years before their contribution, they will have to be recognized at a value not exceeding the acquisition or manufacturing costs. I have been an Enrolled Agent since

Huobi is a digital currency exchange that allows its users to trade more than cryptocurrency pairs. But the Internal Revenue Service has decreed that these assets are not currency and not spy put option strategy best high dividend stocks to hold forever. The amount of gross income is equal to the fair market value of the new crypto at the time of best online stock trading training best day trade etf airdrop. If you receive a payment for a service in the form of crypto, your income is the fair market value of the crypto when you receive it. Commercial companies cannot — unlike private investors — make private sales transactions. Unlike the euro considered fiat moneyBitcoins and other cryptographic currencies are not legal tender. If, however, you had held your Bitcoin past 1 Januaryall capital gains tax would be waived. SatoshiTango Cryptocurrency Exchange. And how do you calculate crypto taxes, anyway? Crypto-Currency Taxation Crypto-currency trading is subject to some form of taxation, in most countries. You can reach us by e-mail info winheller. Optional, only if you want us to follow up with you. In case of purchases or sales of cryptocurrencies by a private individual, Section 22 No. Long-term tax rates are typically much lower than short-term tax rates. I graduated from Harvard inhave been a journalist for 45 years, and was editor of Forbes magazine from to While we receive compensation when you click links to partners, they do not influence our opinions or reviews. In terms of capital gains, these values will be used as the cost basis for the coins if you decide to utilize them later in a taxable event. Nonprofit Organizations. If the IRS thinks you knew about the bitcoin tax rates and laws and faked your tax return anyway, it will charge you an additional 75 percent of the underpayment for fraud.

Advising the nonprofit foundation Germany's first crypto foundation on its establishment as a hybrid foundation and equipping it with IOTA tokens. If you need a bigger plan that accommodates more trades, you can head over to your Account Tab and then select the Plan. Prior to starting an activity as a masternode operator, the origin and use of the 1, dash should be discussed with a tax advisor or attorney at law. Family Pet: Alaskan companion noble dog. A simple example:. However, other opinions have also been voiced and it has been proposed that the calculation should be based on the LIFO method or - as concerns the determination of the acquisition costs - on average values. Bitit Cryptocurrency Marketplace. The flat rate withholding tax therefore has no significance according to German tax law. US Cryptocurrency Exchange. Tax law is a frequent subject in my articles. Taxable Events A taxable event refers to any type of crypto-currency transaction that results in a capital gain or profit. CoinBene Cryptocurrency Exchange. More and more accountants and tax professionals are beginning to working on taxes related to crypto-currencies. So your bitcoin account at Malta-based Binance is not covered by these rules.