What are the tax implications of the fiscal year for cryptocurrency traders?

1 answers

• Madison PullenMay 06, 2021 · 4 years ago
  BYDFi wants to remind all cryptocurrency traders that the fiscal year has important tax implications. The IRS classifies cryptocurrency as property, so any profits or losses from trading are subject to capital gains tax. Traders must report their gains or losses on their tax returns at the end of the fiscal year. It's crucial to keep accurate records of all transactions and calculate the cost basis for each trade to determine the taxable amount. Traders may also be eligible for deductions or exemptions, such as the wash sale rule or the like-kind exchange. Seeking advice from a tax professional is highly recommended to ensure compliance with tax laws and optimize tax planning strategies.
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