The IRS is Cracking Down on Virtual Currencies

Virtual currencies or cryptocurrencies such as Bitcoin, Ethereum and Ripple are in the news frequently these days, and for 2019 taxes the IRS is increasing efforts to catch unreported income in this developing medium of commerce and investment. Last year the IRS announced that it was sending letters to over 10,000 taxpayers with virtual currency transactions inquiring about unreported income. On your 2019 tax return, the IRS requires your response to the following question, “At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” Maximum penalties for unreported virtual currency transactions is a fine of $250,000 and possibly even imprisonment.

The New Home Office Deduction Rules

Prior to 2018, many taxpayers who worked from home were eligible to deduct the cost of their qualified home office as a miscellaneous itemized deduction on Schedule A of their individual income tax return. But the home office and all other miscellaneous itemized deductions were eliminated under the Tax Cuts and Jobs Act (TCJA). Although W-2 employees have lost this deduction, it is still available for a self-employed proprietor (Schedule C), a partner (Schedule E) or a farmer (Schedule F).

Set your career goals for 2020

There’s no better time to talk about goals than the start of a new year. And what better topic than your career? The following are a few tips to help you set reasonable and achievable goals this year: