Crypto tax season is fast approaching. With so many investors entering the crypto market the past year, that means dealing with a new asset class on their taxes. And even for seasoned investors, the regulatory landscape changes all the time. Here’s what you need to know about filing crypto taxes for 2020.
Services like Coinbase and Robinhood are making crypto transactions more seamless than ever, and that ease of use might make you forget that every time you sell a cryptocurrency, it’s a taxable event — just as if you’re selling a stock. If you’ve started your 2020 1040, you’ll notice that the IRS added a highly visible question: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
The purpose of a crypto tax system is to track and record your crypto transactions for tax purposes. A good system makes tax recording easier, it helps you understand your current positions, and to implement tactics that minimize your taxes.
In this piece, we list some popular Cointracking alternatives and we also cross-reference their strengths against their weaknesses based on user reviews. We are confident that this information will help you make an educated decision on the best crypto tracking software and tax reporting tool to use in 2021.
Understanding the basics of taxes is important not just for paying taxes, but also to inform your trading strategy and to avoid unpleasant surprises. I hope this post gives you some new insights into how taxation works, and the next time you’ll buy or sell crypto something will click in your head, and you’ll be thinking about taxes, too.
Bitcoin has been an emerging source of trading and investment for the past few years. Due to the large profit margins and its ability to make people rich overnight, it is gaining an overwhelming response from the international community.
Take a deep dive into the world of crypto taxes with Dan Hannum, COO of ZenLedger. Over an hour and 15 minutes, he tackles a bevy of topics ranging from why the IRS is asking about your crypto history to explaining the proper way of reporting yield farming income.
The Internal Revenue Service (IRS) has made it clear it’s looking to crack down on crypto with a number of actions aimed at tracking taxable crypto activity in the U.S. Tax professionals say Form 1099-B has emerged as the best option for crypto reporting.
If you're wondering how to pay taxes on bitcoin, or how bitcoin price affects your tax situation, ZenLedger can give you some insights! Pat Larsen, one of the leaders behind the product joined me for a fun and educational chat in this episode!