My Accountant Asked Me….

By S.J. Spence

Yes, in the United States, it is tax season. I used to do my taxes myself, but finances can get so complicated with the Internal Revenue Service (IRS) so now, I run everything through my accountant to keep me out of trouble. You will hopefully never see or experience what I mean when an error is made and your account is frozen for honest mistakes. Either way, this year, my accountant asked me a question that has been added to the Form 1040. It caught my attention (this time) as he had been asking this similar question over the past few years and it didn’t grab me like it did this year.

What is the question? Everyone who files a tax return in the USA is subject to answering it: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? Yes or No”. Now, to most people this is easily answered, but let me share my thoughts about the entire crypto currency venture.

To me, one of the most beneficial features of crypto is that it is de-centralized, meaning that it is not controlled in any way by any government. It is not corruptible and it cannot be counterfeited. One should be able to transact with it across borders or within their borders without question from big brother. It is a currency that is created by the people for the people. Or is it?

If it is ‘by the people and for the people’ then why (and how) has the IRS made crypto currency a taxable item and any false reporting could lead to fines or imprisonment? In my opinion, does it still qualify as ‘de-centralized’? Is it private as we were led to believe?

On the contrary, I did not see any questions regarding the ownership of physical metals, such as gold or silver. Now, this isn’t financial advice, but it is something to consider in today’s world. It is getting harder and harder for your average person to keep what they earn. And let us not forget about the ‘hidden tax’ of inflation that is hitting all of us!

In my book Money Plain and Simple, I state that the central banks control the governments and the governments will not allow anything to threaten the monetary system. It is where their power is derived from. The rise of crypto currencies is becoming a threat to their system and they will not let it go on without a fight for dominance. Hence the reporting on the tax form…

What is next? Property taxes on your virtually owned real estate? Yes, in case you don’t know, it is a thing.

Let me know what you think about this or anything else you would like to read about.

sjspence@moneyplainandsimple.com

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