Crypto Taxes
More than 10 percent of Americans traded crypto in the last year — if you’re one of them, you’re probably wondering how your trades and other crypto activity will impact your taxes.
U.S. taxpayers are now required to report crypto sales, conversions, payments, and income to the IRS and state tax authorities. Moreover, each of these transactions has different tax implications.
To determine if you owe taxes, look at how you used your crypto in the last year. Transactions that result in a tax are called taxable events. Those that don’t are called non-taxable events.
Here are a few examples of taxable events:
- Getting paid in crypto;
- Getting crypto in exchange for goods or services: If you accept crypto in payment for a good or service, you’re responsible for reporting it as income to the IRS;
- Mining crypto: If you mined crypto, you’d likely owe taxes on your earnings based on the fair market value (often the price) of the mined coins at the time they were received. Crypto mining as a business is taxed as self-employment income.
If you’re just holding crypto, good news — there is no immediate gain or loss, so the crypto is not taxed.
This is just a quick summary of a few of the key points to be aware of regarding crypto, but please let us know if you have specific questions before we prepare your return this year, and we will provide further advice.
How To Prepare For Crypto Taxes
If you’re just holding Crypto, good news — there is no immediate gain or loss, so the Crypto is not taxed. However, if you have done transactions using Crypto, you are required to pay taxes on each transaction by law.
If you’re someone who has to pay taxes on Crypto, then I have some good news for you. We have an exciting tool you can use to help track your crypto sales, conversions, payments, and income. This tool is called Ledgible.
What is Ledgible?
Ledgible is a crypto tax reporting software that tracks every crypto transaction you do by connecting your wallets, exchanges, and more.
This software can calculate your crypto tax burden, provide current year planning, and prepare reports that summarize your crypto activity. In short, this software will make your life as a crypto investor so much easier.
You won’t have to worry about overpaying in taxes. You don’t have to freak out because you did a million transactions last year and don’t even know where to start…
Best of all, all you have to do to take advantage of these features is create an account. Once you create an account with Ledgible, our team at KDA will take responsibility for managing your account for you.
This means you don’t have to worry about navigating the software, learning how it works, trying to interpret what the reports mean. Instead, leave all the work to us, and we will make sure you pay the least tax possible while also keeping you out of trouble with the IRS.
If you’re a crypto investor, I highly encourage you to sign up ASAP. We are in the middle of tax season. This software will ensure that you don’t run into any hiccups and leave an extra tip for uncle Sam.
If you want to learn more about this service, click the link below.
This is just a quick summary of a few of the key points to be aware of regarding Crypto, but please let us know if you have specific questions before we prepare your return this year, and we will provide further advice.
If you’re ready to sign up for leadable now and start saving on taxes, click the link below to sign up now.
START TODAY
Get your Crypto Taxes done by professionals in the industry.
From Our Blog
6 Tips to Fight the Mid-Winter Blues
Blah. It’s February. The depths of mid-winter blues. Gloomy days relieved only by the darkness of night. A month made for curling up under the blankets and staying in bed. Sound familiar? I am sure many of you have either seen the news of winter hitting so many states this year, or are experiencing it as you read this. With the pandemic, quarantine, it seems as if 2020 could [...]
Zoom Meetings: 3 Clear Tips on How to Use Zoom to Meet With Clients
One of the most powerful tools used this past year has been Zoom. Whether you're trying to be socially distanced due to Covid-19, or if you're needing to meet clients in another state, having a Zoom meeting can be the answer to your business needs. Zoom is an app that can be used either on your phone or laptop. It is very similar to Google Hangouts, or Skype. However, [...]
What’s the Big Deal with Investing and Taxes? 2 Tips You Need to Know!
If you have been online lately, you've noticed that many people have been investing in different ways, and asking all about investing and taxes. How do they go hand in hand? Is it too risky to invest if I am concerned about my taxes? As an accounting firm, we've been getting this main question: How does investing affect your taxes? Like any other major events or steps, it is [...]
3 Easy Tools to Make Remote Work Less Remote
3 Easy Tools to Make Remote Work Less Remote Now that you’ve been working remotely for several months, how are you feeling about your shared office apps? If you’re still scrambling to put together a set of tools that meet your virtual needs, here are some applications that will go a long way toward making everyone feel like they’re working together as a team…even when you’re not in the [...]
4 Habits to Keep your Brain Healthy
We've all heard of body health, but have you ever heard of keeping your brain healthy? You exercise your body to stay healthy, but how often do you exercise your brain? Research has shown that keeping your brain cells strong and sharp can help lower your risk of developing dementia. Here are four ways to make sure your body’s busiest organ keeps running smoothly. Keep doing. Brain activity stimulates [...]
Special Resolution 2021: Look Outward
Look Outward! Congratulations, we’ve made it through 2020! We’ve proven to ourselves that we’re disciplined and strong! And we appreciate even more what our family and friends mean to us! Does that mean we don’t need to make resolutions this year? Maybe. But it’s always good to have a goal. So, if there’s nothing to resolve for yourself, why not direct your resolutions outward for 2021? It feels good [...]