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
10 fun activities for a socially distanced fall season
Worried about how to have fun this fall season? Not sure how to have a socially distanced fall season? Have your kids or grandchildren been bored at home this whole quarantine? Even with summer in the rearview mirror, there are lots of opportunities to get out of the house and enjoy activities with family and friends (or others in your “bubble”). Here are 10 suggestions for fall fun that [...]
Trump’s Taxes Explained: Detailed Discussion and 18 Easy Time Stamps
Earlier this season, Trump's tax returns were published by the New York Times. Trump's Taxes Explained is us doing our part in bringing you a discussion and in depth analysis in how this works for him and other investors. Many people were upset to see all the write-offs President Trump has on his tax report. As a tax firm, we feel that it is our responsibility to talk about [...]
Supporting Small Business During This Season: 3 Easy Tips
Supporting small business this year seems like the least of our worries! With everything going on, it seems like we're all just waiting for things to go back to normal. However, it is quickly looking like we will be navigating the pandemic for the rest of the year, and all we can do is stay afloat. If we want normalcy and eventual resolution, we need to make sure to [...]
The Best Entity for Flipping Properties
What is the best entity for flipping properties? Karla Dennis and Associates, Inc. receives hundreds of questions every week- just like the previous one. Although we can give specific answers without knowing specific facts, we want to share common knowledge regarding taxes, real estate, and business. One of the most common questions we receive is all about entities. When you are flipping properties, how should you treat that real [...]
3 KDA Resources to Better Your Tax Game!
Education comes first for us! Therefore, here are 3 KDA resources for you! We often get many questions about how KDA can help you learn, stay connected, and up-to-date information. We have a team working around the clock to bring content right to your fingertips. One of the biggest ways you can stay connected with us is through social media. Here are four ways to stay connected with KDA! [...]
Tax Compliance and Tax Reduction Made Easy with Kenneth Dennis
What is tax compliance and tax reduction? We are here […]