Charles J. Zimmerer

BITCOIN

Bitcoin is a peer-to-peer electronic cash system. It is intended as a means of payment. Bitcoin is called a cryptocurrency because it is encrypted. Bitcoin relies on two encryption keys. One public and one privately created. Bitcoin relies upon Blockchain technology to function. The Blockchain is the record keeping system (or ledger of transactions) that Bitcoin, and many other virtual currencies for that matter, rely upon to function. Bitcoins are registered to address keys. The Blockchain records Bitcoin transactions and the history of the Bitcoin ownership. Bitcoin is a decentralized currency. There is no government or authority that administers Bitcoin. Bitcoin was created as an open source software. The decentralized Blockchain consists of numerous independent computers that store copies of the ledger across the globe. Is Bitcoin subject to taxes? In the USA, yes. If you receive Bitcoin for services, it may be includable in income and you are required to report it on your IRS Form 1040. If you sell appreciated Bitcoin, you may owe capital gains taxes. #bitcoin #ethereum #altcoin #litecoin

Bitcoin IRS Disclosure

Are you worried about the IRS discovering your Bitstamp or Coinbase account? There's reason to worry as the IRS is aggressively pursing John Doe Subpoenas against crypto wallets. A federal court has recently yordered disclosure of all accounts above $10,000. Now is the time to get into compliance with the IRS before you receive an audit letter. You should not represent yourself. Your counsel should pursue a strategy of minimizing penalties and interest. Failing to report income from bitcoin, litecoin, ethereum, bitcoin cash, and altcoin transactions constiteus a crime. The IRS is secretly pursuing people who have failed to report cryptocurrency transactions on their income tax returns. If you are a US citizen or resident, you must report income from all sources within and outside of the U.S.  This is true whether you received a W-2 or 1099. 

NUA

Do you own company stock in your 401k? Would you like to cut your taxes in half when you retire? NUA Net Unrealized Appreciation is the answer. Many financial advisers are aware of it, but can't advise on the tax consequences. Most tax preparers have never heard of it because the IRS has published very little in the way of information regarding it. It took numerous hours researching the Internal Revenue Code and Treasury Regulations related to retirement plans to understand the transaction. How it works is quite simple: you make a lump-sum distribution of your 401k. This is a rollover. In that process, you distribute your company stock (or employer stock such as HEICO, FPL, NextEra Energy, Chevron, to name a few) to a brokerage account. You will owe tax on the basis of the stock. This is what you purchased it for many years ago in your ESOP or LESOP retirement account. The appreciation of the stock all those years will be subject to long term capital gains. You would want to take advantage of this if your stock has gone up in value since you acquired it. Furthermore, if you did not do this transaction, you would pay ordinary income rates as high as 39.6%. So what would you rather pay in taxes, 0%, 15%, or 20%, in capital gains tax rates, or 39.6%?Do you have charitable intentions? You should let us show you how to maximize your charitable giving. Consider giving appreciated stock directly to a charitable account versus selling it, paying taxes on the stock, and then claiming a miscellaneous deduction. Finally, learn how to make tax efficient decisions and reduce your tax liability legally. Contact us for a complimentary 15-minute consultation by telephone. #nua