In the US, individuals are required to collect, store and report information on all of their cryptocurrency transactions, regardless of the amount. Therefore, any level of profit requires the disclosure and payment of crypto tax.
Also, any number of transactions in the crypto space requires reporting on your tax reports for the year. However, the level of taxation depends on a number of factors, such as the tax treatment used (such as LIFO or FIFO), whether your gains are taxed under short-term or long-term capital gains rules, and your level of income.
Recap allows you to select most of these factors and create a tax report that is tailored to you. Additionally, if you lost money from your cryptocurrency transactions in a certain tax year, you may be able to claim up to $3,000 of those losses against income, reducing your tax bill for the year!
Click the button below to quickly connect your 2019 crypto transactions and find out whether you owe the IRS for 2019.
Need to sort out your crypto taxes? Use Recap, the privacy focused cryptocurrency accounting software to calculate the taxable gain or loss on your cryptocurrency investments!
Disclaimer: This article is intended as an informative piece. This is not accounting or tax advice. Please speak to a qualified tax professional about your specific circumstances before acting upon any of the information in this article.