Not so long ago, the popular cryptocurrency Bitcoin underwent either an innocuous mini-evolution, or a massive shift in its very identity that will revitalize or doom the concept, depending on who you ask. In an effort to increase liquidity, software developers mirrored original bitcoin's code and handed everyone who owned one bitcoin one new Bitcoin Cash.
- What is your basis? Do you know your bitcoins' worth at the point you bought them?
- What if you bought different bitcoins at different times? How are you tracking gains and losses for each batch and overall?
- What of tax reporting? Some cryptocurrency exchanges provide you with forms like 1099s and/or a ledger, but not all -- and many bitcoin investors fail to file it.
- Did you mine bitcoin (i.e., use your computer to solve puzzles unlocking more currency)? If so, the IRS says that is income.
Gold and Silver
Business Development Companies (BDCs)
- Revenue from fees and interest (taxed as income)
- Qualified Dividends (taxed as such)
- Return of capital. This portion isn't an investment return -- that money was already yours. Hence, you don't pay taxes on it. However, it lowers your cost basis (along with the BDC's current price).
Master Limited Partnerships (MLPs)
Real Estate Investment Trusts (REITs)
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