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
Retiring Before Age 65? Tips for Saving Money on “Obamacare”
We’ve all seen how medical expenses, including health insurance, go up with age. If you’re not yet age 65, where you can have Medicare, The Affordable Care Act (ACA) has made finding health care that corresponds to your budget easier, in some circumstances. However, understanding how tax credits and subsidies affect your options is not always easy. You might find that getting insurance under the Affordable Health Care Act requires some planning: Start by assessing your income and find out what the poverty level is in your state. These numbers will determine the subsidies you qualify for. Find out if you qualify for Medicaid. Income requirements vary from one state to another: In some states, you can qualify for Medicaid if your income corresponds to the poverty level or is below this level. Some states have expanded Medicaid, which means this option is available if your income corresponds to or is below 138% of the poverty level. You might qualify for tax credits that would help you pay for health care coverage. You can qualify for tax credits as long as your income corresponds to or is lower than 400% of the poverty level in your state.
7 Ways to Spend the Rest of Your Life Debt-Free
A heavy debt burden is like climbing a mountain with […]
The Modern Guide to Getting the Promotion of Your Dreams
In today’s world of business, getting a promotion can be challenging. There are more things to think of than just doing your job for a long time until your seniority earns you a promotion. Competition can be tough. In addition, modern technology and social media both provide information about you that can make or break your dreams of getting that promotion. Take advantage of these strategies to get noticed and outshine your competition: Remain active in your career. It’s easy to fall into a comfortable pattern at work and forget to think about the future. Even if you’re a good worker who makes steady progress, it may not be enough for a promotion. Keep your career goals in mind and grow your value to your company. Pursue all of the opportunities that you can. Volunteer for crucial projects. Show your team spirit by helping out your coworkers when they need assistance. Invest in yourself and your career. Are you investing time, money, and effort into your future? You can advance in your career by taking steps that show management you’re interested in learning. Take classes, get another degree, earn certifications, or attend conferences. You can even find courses for free online that help increase your skills. Your company may offer training materials. Take advantage of these trainings and learn all you can about your company and everything that you can do for them. Pay attention to your social media interactions. Social media can have a big impact on your ability to get a promotion.
7 Smart Financial Moves for Unmarried Couples That Live Together
Living by yourself can be lonely and expensive. If […]
6 Mistakes That Can Bring Disaster to Your New Business
Starting and running your own business can be very lucrative […]
An Essential Guide to Safe Online Shopping
Online shopping is a fast and convenient way to buy […]