Worried about cryptocurrency taxes? Don’t be. Here’s why.

Worried about cryptocurrency taxes? Don’t be. Here’s why.

As the old adage goes, the two things you can’t avoid in life are death and taxes and unfortunately, with cryptocurrencies, it is no different.

While of course, the nature of cryptocurrencies may sometimes feel autonomous from the tax-world, this isn’t the case. As such, being knowledgeable about it can save traders a lot of time, effort and most importantly, help avoid fines. Although this may sound daunting, it is now easier than ever before and there can actually be some financial benefit to gain too.

While of course, the nature of cryptocurrencies may sometimes feel autonomous from the tax-world, this isn’t the case. As such, being knowledgeable about it can save traders a lot of time, effort and most importantly, help avoid fines. Although this may sound daunting, it is now easier than ever before and there can actually be some financial benefit to gain too.

2018 hasn’t been the best years in the industry and more than a few traders out there have made a loss, but those wounds can be remedied, at least in part, via your taxes. Many traders out there may not have been planned to claim their losses, but they should as it will give them the opportunity to minimise their 2018 losses. This is because, if you didn’t know, cryptocurrencies are considered property and thus, if you have made a loss by investing, it is considered a capital loss, like stocks. This loss can be used to counterbalance any profit. The upshot is that you can use the losses as a means to deduct from the profit tax you have accumulated, effectively softening the blow of the taxman and keeping hold of more of your hard earned capital. You can do this up to the value of $3000, which is a very respectable sum.

However, some of you out there may not have not of made any profit this year, but that doesn’t mean you can’t benefit. If you paid attention to the news of late, then you will have seen an increase in the value of your coins over the last few and you may be looking at a profit in 2019 already. If this is the case, then that $3000 is not out of reach yet because the figure can be passed over to next years taxes too. As such, essentially, there is a $3000 reduction in your taxes going begging and you can essentially claim it as and when you want, and keep yourself out of any trouble with the tax man.

Secondly, many major online cryptocurrency exchanges are making it easier to do your taxes by working together with specialist platforms. Coinbase announced today how exactly they are making it easier for their customers on two levels. First, they have integrated their service with TurboTax, which will allow you to process 100 Coinbase transactions in one go. Not only this, but when you sign up via their Coinbase’s website you will be awarded a 20% discount on their service too. As well as this, they have also teamed up with CoinTracker, who will assist you in summarising all your transaction activity in 2018 in no time and provide you with all the necessary documentation you will need. As such, it really couldn’t be easier.

This is just what Coinbase are offering though, and other exchanges will be offering similar setups to help you navigate territory you may not have ventured before.

As such, it easy to do and could see you claiming some losses back, so rather than fearing tax season, you should embrace it with open arms.

2018 hasn’t been the best years in the industry and more than a few traders out there have made a loss, but those wounds can be remedied, at least in part, via your taxes. Many traders out there may not have been planned to claim their losses, but they should as it will give them the opportunity to minimise their 2018 losses. This is because, if you didn’t know, cryptocurrencies are considered property and thus, if you have made a loss by investing, it is considered a capital loss, like stocks. This loss can be used to counterbalance any profit. The upshot being that you can use the losses as a mean to deduct from the profit tax you would accumulated, effectively softening the blow of the taxman and keeping hold of more of your hard earned captial . You can do this up to the value of $3000, which is a very respectable sum.

However, some of you out there may not have not of made any profit this year, but that doesn’t mean you can’t benefit. If you paid attention to the news of late, then you will have seen an increase in the value of your coins over the last fews and you may be looking at profit in 2019 already. If this is the case, then that $3000 is not out of reach yet becuase the figure can be passed over to next years taxes too. As such, essentially, there is a $3000 reduction in your taxes going begging and you can essentially claim it as and when you want, and keep yourself out of any trouble with the tax man.

Secondly, many major online cryptocurrency exchanges are making it easier to do your taxes by working together with specialist platforms. Coinbase announced today how exactly they are making it easier for their customers on two levels. First, they have integrated their service with TurboTax, which will allow you to process 100 Coinbase transactions in one go. Not only this, but when sign up via their Coinbase’s website you will be awarded a 20% discount on their service too. As well as this, they have also teamed up with CoinTracker, who will assist you in summarising all your transaction activity in 2018 in no time and provide you with all the necessary documentation you will need. As such, it really couldn’t be easier.

This is just what Coinbase are offering though, and other exchanges will be offering similar setups to help you navigate territory you may not have ventured before.

As such, it easy to do and could see you claiming some losses back, so rather than fearing tax season, you should embrace it with open arms.

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