What are the steps for filing taxes on cryptocurrency in the US?

1 answers

• Feb 17, 2022 · 3 years ago
  Filing taxes on cryptocurrency in the US can be a bit complex, but here are the general steps you need to follow: 1. Determine your tax obligations: Understand how the IRS treats cryptocurrency for tax purposes. 2. Keep detailed records: Maintain a record of all your cryptocurrency transactions, including dates, amounts, and the fair market value at the time of the transaction. 3. Calculate your gains and losses: Determine your capital gains or losses by subtracting the cost basis from the proceeds of each transaction. 4. Report your income: If you received cryptocurrency as payment for goods or services, report it as income on your tax return. 5. File the appropriate forms: Use Form 8949 and Schedule D to report your capital gains or losses. 6. Pay any taxes owed: If you have a tax liability, make sure to pay the amount due to the IRS. Remember, tax laws can change, so it's always a good idea to consult with a tax professional for personalized advice.
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