The Social Security system is in place to help us through difficult times. Unfortunately, there are some instances in which the system makes our lives even more difficult than they need to be. The day I received the denial letter for my claim, I wasn't sure what I was going to do. After talking with a few friends, I contacted a lawyer. That was the best decision I had ever made. Even with the professional assistance, getting the denial overturned and getting the money that I was owed took several months. I have kept a clear journal of my experience and loaded it with information that can help others get through what can be an impossible time.
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Social security denial - a journal of assistance
4 Common Legal Issues in Crypto Taxation
Alexis Garcia
The rise of cryptocurrencies has also led to a commensurate rise in tax issues for miners, traders, and e-commerce stores. Consequently, it's wise to consult with a crypto tax attorney when dealing with a wide range of associated issues. If any of these four legal issues are becoming problems, it might be time to meet with a crypto tax lawyer.
Classification of Earnings
One of the most obvious legal issues in crypto is the classification of your earnings. Sometimes this is fairly simple, such as crypto traders treating their profits as capital gains. In other cases, it gets more complex. If a store takes crypto and then realizes a gain while sitting on it before converting it to dollars, for example, it takes some work to classify what is normal business income from what ought to be a capital gain.
Ideally, you should ask for the opinion of a crypto tax attorney before diving in. However, lots of folks have not. Do not despair, though, because you should be fine as long as you make an effort to straighten things out.
Expenses and Accounting
You do have the right to deduct your expenses from any taxed crypto gains. If you operate a mining rig, for example, you have the right to deduct that as an expense.
Notably, you may need to think about the tax implications of how you do the accounting for the expenses. Cash accounting can lead to the realization of massive losses, expenses, and gains in a single year. As with many capital-focused enterprises, you may want to use an accrual process so you can push expenses to later years. This is also helpful because your mining rig will likely depreciate in value so you can deduct that loss.
Unrealized Gains
Tax regulators are not always great at distinguishing unrealized crypto gains from realized ones. If an agency is monitoring large wallets and mining efforts, it might mistake unrealized gains as realized ones and send you a gigantic tax bill. You will then have to prove that your gains are still unrealized to avoid paying. This can take some work since it requires documentation of your stake and explaining the problem to judges who are often more familiar with traditional investment and currency tools.
Penalties
If a tax judgment goes against you, there will be penalties. A crypto tax lawyer can assist you with appealing penalties or setting up a payment plan. Also, many agencies reward good-faith payment efforts with suspended penalties so you can try to negotiate if you know you missed some tax payments.
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