Category: Uncategorized
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Peer-to-Peer Crypto Transactions: Tax Implications Explained
Understanding Crypto Tax Crypto and Tax Definition and Classification of Cryptocurrencies Cryptocurrencies, often referred to as “Virtual Digital Assets” (VDAs), represent any digital information, code, or token that isn’t classified…
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Crypto Taxes for Day Traders: Essential Guide
Crypto Tax Basics How Crypto is Taxed Cryptocurrencies are treated as property by the IRS, and this classification carries significant tax implications. Each transaction involving crypto—whether you are buying, selling,…
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Global Crypto Tax Laws: A Country-by-Country Comparison
Understanding Crypto Tax Cryptocurrency taxation is an evolving and multifaceted issue that national and international fiscal authorities grapple with as the digital economy expands. The importance of establishing clear and…
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CPAs and Crypto Tax Preparation: What You Need to Know
Cryptocurrency Taxation Fundamental Concepts Asset Classification: In the eyes of the Internal Revenue Service (IRS), cryptocurrencies are classified as property. This fundamental designation impacts how transactions are reported and taxed.…
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Earning Interest on Crypto: Tax Implications Explained
Earning Crypto Interest Definition Earning interest on cryptocurrency involves generating passive income through various activities within the crypto ecosystem. Unlike traditional savings accounts that accrue interest via a bank, crypto…
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Avoiding Crypto Tax Penalties: Key Tips
Taxable Events Types Understanding taxable events is crucial to avoid penalties with crypto taxes. The IRS views various activities involving cryptocurrencies as taxable events, each of which must be reported…
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Reporting Stolen or Lost Cryptocurrency: Tax Considerations
Cryptocurrency Basics Cryptocurrency Basics Crypto as Property In the realm of tax reporting, the IRS has designated cryptocurrency as property rather than currency. This classification stems from IRS Notice 2014-21,…
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Crypto Airdrops and Forks: Tax Implications Explained
Overview As the world of cryptocurrency continues to burgeon, understanding the tax implications of various crypto events becomes increasingly critical. Among these events, crypto airdrops and forks stand out due…
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Crypto Mining and Taxes: Essential Information
Taxation on Mining Income Ordinary Income When you successfully mine cryptocurrency, it is considered ordinary income. At the time you receive the mined cryptocurrency, its fair market value (FMV) is…
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Top Crypto Tax Deductions: How to Maximize Your Savings
Offset Gains with Losses Short-term vs. Long-term Understanding the distinction between short-term and long-term gains and losses is pivotal when offsetting capital gains with losses. This is particularly important in…