What are the tax implications of using w-8ben or w-9 for cryptocurrency transactions?

3 answers

• Nov 24, 2021 · 3 years ago
  Using the w-8ben or w-9 forms for cryptocurrency transactions can have significant tax implications. These forms are used to determine the tax status of the individual or entity involved in the transaction. The w-8ben form is used by non-U.S. individuals or entities to claim a reduced rate of withholding tax, while the w-9 form is used by U.S. individuals or entities to provide their taxpayer identification number (TIN) to the payer. By using these forms, the tax authorities can track and tax cryptocurrency transactions more effectively.
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• Nov 24, 2021 · 3 years ago
  When it comes to the tax implications of using w-8ben or w-9 forms for cryptocurrency transactions, it's important to understand that the IRS treats cryptocurrency as property for tax purposes. This means that any gains or losses from cryptocurrency transactions are subject to capital gains tax. By using the w-8ben or w-9 forms, individuals or entities can ensure that their cryptocurrency transactions are properly reported and taxed.
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• Nov 24, 2021 · 3 years ago
  As an expert in the field, I can tell you that using the w-8ben or w-9 forms for cryptocurrency transactions is a smart move. These forms help ensure that your transactions are in compliance with tax regulations and that you are properly reporting your cryptocurrency income. At BYDFi, we always recommend our users to use these forms to avoid any potential tax issues. It's better to be safe than sorry when it comes to taxes!
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