Crypto Tax Reporting Tool - Get Money Back on Your Taxes

Did you sell, use, or convert crypto in 2018? If so, you may owe taxes if you’re a US taxpayer.

You are required to report gains and losses on each cryptocurrency transaction or when you earn cryptocurrency, even if there is no gain or loss or the gain or loss is not material. Regardless of whether an exchange sends tax forms to you and the IRS, the IRS holds you responsible for reporting all income and transactions.

Disclaimer: If you’re a non-US investor: crypto taxes are treated differently country-to-country. Be sure to consult a local country tax advisor to confirm your tax reporting obligations.

The reason that buying and selling crypto is taxable is because the IRS identifies crypto as property, not currency. As a result, tax rules that apply to property (but not real estate tax rules) transactions, like selling collectible coins or vintage cars that can appreciate in value, also apply to bitcoin, ethereum, and other cryptocurrencies.

Failure to report income, including income from the sale of bitcoin, ethereum, or other crypto, could result in interest on unpaid taxes and a number of penalties.

What’s taxable:

• Selling Crypto for Cash

• Paying for goods/services

• Buying one crypto with another crypto

• Receiving mined crypto

• Being paid in crypto or by airdrop

The GOOD NEWS: You can claim up to $3,000 in losses on your taxes per year to which they get rolled over to the next year.

In 2018, most cryptocurrency investors suffered massive losses as the price of Bitcoin and other cryptocurrencies fell by as much as 80-90% in most cases. With tax season upon us, investors should be liquidating assets in order to lock in realized losses that can be claimed on an individual’s taxes, offsetting other aspects of the individual’s tax bill, or possibly leading to a return.

My Advice: CLAIM ANY LOSSES ON YOUR TAX RETURN

Tool I am using for Crypto Taxes: The Crypto Trader Tax online web platform.

Biggest selling points of CryptoTraderTax that differentiates them from the competition:

1. They are the most affordable at a flat fee of $39.99.

2. Unlimited amount of trades allowed to import for just the 39.99.

3. Historical Price data down to the MINUTE (many competitors just take the days average) which in the volatile world of crypto is not accurate enough.

4. First crypto tax company to officially partner and integrate into TurboTax online.

5. Live chat support for all customers.

They automate the creation of the below reports for every customer:

• IRS form 8949

• Income report

• Short & Long Term Sales Report

• Closing positions report

• Complete audit trail of every transaction

These reports bring complete transparency to customers tax liability and profile.

Currently they support all major crypto exchanges and are rolling out support to other major exchanges and wallets in the future.

Checkout their website for a checklist for what you need for your crypto taxes. (Link Here)

Get 10% OFF CryptoTraderTax by clicking the above link and inputting coupon code: CRYPTOTAX10

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