BSV: Taxes Simplified
The IRS has ruled that the gains and losses in fluctuations of digital currency value are taxed as Capital Gains Profit and Loss. Rockwallet.com has built-in accounting that allows you to export all of your transactions as a CVS (aka “Excel Spreadsheet”) file. You can send that file to a tax program that specializes in this sort of thing, and they can generate a quick report that provides you with the information you need to file your taxes.
Here is something very important for those treating BSV as an investment, or as a “digital gold” long term savings hold…. You do NOT pay taxes on the profits, until you sell it. Following is an example (not financial advice): Suppose you buy 20 BSV for $1000. Your “cost basis” is $1000. You don’t have to pay taxes on getting that $1000 back out. So, suppose BSV went to $10,000 each, and you decided to sell it all. Well, your original purchase of 20 BSV x $10,000 ea = $200,000. Remembering that your original investment was $1000, you subtract that. So you profited $199,000. You will have to pay taxes on that – but hey, considering that is practically free money, not bad right? An example of this would be the creation of long term “Savings, Childrens College Fund, or Gifts To Grandkids” accounts.
But if you are going to buy and start transacting (buying, selling, gifting, or trade/barter with BSV) then you just export your Rockwallet CVS file to a Tax Preparer, and they have software that instantly translates the value of every transaction, and gives you a quick set of numbers to use in your tax return. An example of this would be using BSV as “Mom-to-Mom Money“.
Following are just a few sites (some are even free) I am aware of that can take the transaction data, and spit out a tax report for you:
https://cryptotaxcalculator.io/exchanges/bsv-tax/