How can I handle my cryptocurrency taxes for the year 2018?

1 answers

• Sandro RukhadzeAug 05, 2020 · 5 years ago
  Handling cryptocurrency taxes for the year 2018 can be overwhelming, but don't worry, I'm here to help! Here are some steps you can follow: 1. Keep detailed records: Make sure to keep track of all your cryptocurrency transactions, including the date, type of transaction, and the value in USD at the time of the transaction. This will help you accurately calculate your gains and losses. 2. Determine your tax obligations: Cryptocurrency is treated as property by the IRS, which means you may be subject to capital gains tax. The tax rate depends on your income bracket and the holding period of your cryptocurrency. 3. Use tax software or consult a tax professional: There are various tax software options available that can help you calculate your cryptocurrency taxes. Alternatively, you can seek the assistance of a tax professional who specializes in cryptocurrency taxation. 4. Report your cryptocurrency transactions: You may need to report your cryptocurrency transactions on Form 8949 and Schedule D of your tax return. Make sure to accurately report your gains and losses and include any necessary supporting documentation. 5. Consider deductions and exemptions: Depending on your country's tax laws, there may be deductions or exemptions available for cryptocurrency transactions. Consult with a tax professional to see if you qualify for any tax benefits. Remember, it's always a good idea to consult with a tax professional or use reliable tax software to ensure you're handling your cryptocurrency taxes correctly and complying with the tax regulations.
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