What are the steps to properly file taxes for cryptocurrency earnings with BlockFi?

3 answers

• Nov 28, 2021 · 3 years ago
  Sure! Here's a step-by-step guide on how to file taxes for cryptocurrency earnings with BlockFi: 1. Gather all your transaction records: Start by collecting all the necessary information about your cryptocurrency transactions on BlockFi. This includes details such as the date of each transaction, the type of cryptocurrency involved, the amount bought or sold, and the price at which it was bought or sold. 2. Calculate your gains or losses: Once you have all the transaction records, calculate the gains or losses for each transaction. This can be done by subtracting the cost basis (the amount you paid for the cryptocurrency) from the fair market value (the price at which it was sold). 3. Report your earnings: Include the total earnings from your cryptocurrency transactions on your tax return. This can be done using IRS Form 8949, which is used to report capital gains and losses. Make sure to provide accurate and detailed information for each transaction. 4. Pay any applicable taxes: Depending on the amount of your earnings and your tax bracket, you may owe taxes on your cryptocurrency earnings. Consult with a tax professional or use tax software to determine the amount of taxes owed and make the necessary payments. 5. Keep records for future reference: It's important to keep records of your cryptocurrency transactions and tax filings for future reference. This will help you in case of any audits or inquiries from the IRS. Remember, it's always a good idea to consult with a tax professional to ensure you are filing your taxes correctly and taking advantage of any available deductions or credits.
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• Nov 28, 2021 · 3 years ago
  Filing taxes for cryptocurrency earnings with BlockFi can be a bit tricky, but here are the main steps you need to follow: 1. Determine your tax obligations: Cryptocurrency earnings are subject to taxation, so it's important to understand your tax obligations. The IRS treats cryptocurrency as property, so any gains or losses from the sale or exchange of cryptocurrency are subject to capital gains tax. 2. Keep track of your transactions: Keep detailed records of all your cryptocurrency transactions on BlockFi. This includes information such as the date of each transaction, the type of cryptocurrency involved, the amount bought or sold, and the price at which it was bought or sold. 3. Calculate your gains or losses: Calculate the gains or losses for each transaction by subtracting the cost basis from the fair market value. The cost basis is the amount you paid for the cryptocurrency, and the fair market value is the price at which it was sold. 4. Report your earnings: Report your cryptocurrency earnings on your tax return using IRS Form 8949. Provide accurate and detailed information for each transaction, including the date, type of cryptocurrency, amount, and price. 5. Pay your taxes: Depending on the amount of your earnings and your tax bracket, you may owe taxes on your cryptocurrency earnings. Consult with a tax professional or use tax software to determine the amount of taxes owed and make the necessary payments. 6. Seek professional advice: If you're unsure about how to properly file taxes for your cryptocurrency earnings, it's always a good idea to seek professional advice from a tax professional who specializes in cryptocurrency taxation.
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• Nov 28, 2021 · 3 years ago
  When it comes to filing taxes for cryptocurrency earnings with BlockFi, it's important to follow these steps: 1. Understand your tax obligations: Cryptocurrency earnings are subject to taxation, so it's crucial to understand your tax obligations. The IRS treats cryptocurrency as property, and any gains or losses from the sale or exchange of cryptocurrency are subject to capital gains tax. 2. Keep detailed records: Keep track of all your cryptocurrency transactions on BlockFi. This includes information such as the date of each transaction, the type of cryptocurrency involved, the amount bought or sold, and the price at which it was bought or sold. 3. Calculate your gains or losses: Calculate the gains or losses for each transaction by subtracting the cost basis from the fair market value. The cost basis is the amount you paid for the cryptocurrency, and the fair market value is the price at which it was sold. 4. Report your earnings: Report your cryptocurrency earnings on your tax return using IRS Form 8949. Provide accurate and detailed information for each transaction, including the date, type of cryptocurrency, amount, and price. 5. Pay your taxes: Depending on the amount of your earnings and your tax bracket, you may owe taxes on your cryptocurrency earnings. Consult with a tax professional or use tax software to determine the amount of taxes owed and make the necessary payments. Remember, it's always a good idea to consult with a tax professional who specializes in cryptocurrency taxation to ensure you are filing your taxes correctly and taking advantage of any available deductions or credits.
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