Janice acquired bitcoin in 2018 and 2020. This year, she used a portion of her bitcoin holdings to acquire 100 Litecoin. What are the tax implications of this transaction? What do you recommend Janice do to help track her acquisition and use of virtual currency (in order to have records readily available about these investments and their tax consequences)?

Janice acquired bitcoin in 2018 and 2020. This year, she used a portion of her bitcoin holdings to acquire 100 Litecoin. What are the tax implications of this transaction? What do you recommend Janice do to help track her acquisition and use of virtual currency (in order to have records readily available about these investments and their tax consequences)?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 1MYW

See similar textbooks

Similar questions

1. What is the capital gains tax assuming the sale was made in 2018? 2. Assume Bryan is a dealer in securities, what is the capital gains tax for 2018 is?
In 2022, Rainer disposed of some crypto he had held for several years. He is not entirely sure of his basis in the coins. How can he best determine the original purchase price in order to minimize the tax impact of the sale? An estimate is fine. As long as Rainer knows roughly what the coins were selling for the month he made the purchase, he can use that as a range. The coin exchange Rainer uses is responsible for providing that information, so he can contact them and find the original purchase price. If he doesn't have the original records, he cannot recreate them. Rainer must use a $0 basis. Rainer can use a blockchain explorer to determine the date and time of his purchase and the fair market value (FMV) of the coins at that time.
Which of the following is most likely not a trade transaction for income tax purposes? A. In August 2020, Jackie imported fine diamond jewelleries from South Africa which she placed it in her diamond boutique in London for resale on higher profits. B. Aziza imported a consignment of tourist gifts made of genuine leather from overseas. She subsequently sold all the gifts through a few tourist agents on commission. C. Alexander sold his inherited properties during the tax year 2020/21. The properties were inherited from his wealthy father. A property agent helped him in doing that by advertising the properties in a local magazine in search of good prices. D. Speculating the fluctuation in the price of gold, James bought a large quantity of gold on 1 July 2020 and successfully resold on 15 September 2020.
Evaluate the three strategies reducing income, increasing deductions, and taking advantage of tax credits that you listed based on their overall effect on a person's tax situation (the amount of income taxes that the person will have to pay). Evaluate the ethical issues related to the payment of income taxes. in other words, if there is a legal tax-saving strategy available to a person who earns $50,000 per year, will it be ethical for the person to utilize this strategy in order to pay less tax? State how your answer to the previous question would change if the person were making $1,500,000.
During 2020, Jackie sent her brother Junnie $2,500 via a telegraphic transfer through El Banco Prieto. The bank’s remittance clerk made a mistake and credited Junnie with $250,000 which he promptly withdrew. The bank demanded the return of the mistakenly credited excess, but Junnie refused to do so. The BIR entered the picture and investigated Junnie. Would the BIR be correct if it determines that he earned a taxable income under the facts? No, it was not her fault that the funds in excess of $2,500 were credited to him. Yes, income is a taxable income regardless of the source No, he had no income because he had no right to the mistakenly credited funds. No, the funds in excess of $2,500 were in effect donated to her.
Janine is currently in need of cash and plans to sell some of his capital assets. Which of the following would be subject to the capital gains tax if sold? a. ornamental plants b. patent c. grazing field d. smartphone
Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets: 1. Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500. Please calculate CGT on both Index method and Discount method and recommend which one is better with reference to Australian Tax Law. Advise the Capital Gain Tax Consequences for the above transactions,
If Mrs A worked at a jewellery store and her employer gave her a sales bonus of a diamond ring valued at $10,000 how would you treat this for taxation purposes? Briefly explain making reference to any relevant case law.
Han and Leia have come to you for tax help for their 2023 tax year. What issues does their set of facts present to you as their tax advisor? What advice do you have for them? Please make any assumptions that you need in-order to address and respond to the issues presented by the fact pattern. Clearly state the assumptions that you make. It is advisable to utilize a memorandum style in which you address the facts, issues, analysis, and conclusions. Support your answers with cites to code, regulations, cases, rulings, IRS publications or other research data. 1. In 2023 the Village of Mos Eisley valued the property at $3,150,000 and assessed real property taxes on the both the home and the out-parcels of property. Jobba the Assessor determined that the home represented 30% of the value and the out-parcels represented the remaining 70% of the value for the property. The real estate taxes on the Lake Tatooine property are $31,500 per year.
Jackie is currently in need of cash and plans to sell some of his capital assets. Which of the following would be subject to the capital gains tax if sold? A. patent B. ornamental plants C. grazing field D. smartphone
Explain the tax effect based on providing $180,000 per year for the client’s salary and $70,000 per year for his daughter’s salary if they withdraw cash from the business or pay dividends as appropriate. E. Justify the percentage of ownership the client’s daughter should have in the business based on the type of business entity recommended. Consider the tax law in reference to the recommendation and how the decision will affect the daughter’s tax return. Answer for a S-Corporation please
Assume Bryan is a dealer in securities, the capital gains tax for 2018 is