What To Do About Cryptocurrency Taxes?
We first need to start this by saying that we are not licensed CPAs, and none of this is financial advice.
We are going to give you our best recommendations and with that, make sure to talk to your accountant for more concise and specific advice.
The Easiest Way To Take Care of Cryptocurrency Taxes
While it can seem daunting, and yes it sucks, when taking profit in USD, we are supposed to pay taxes in the U.S.
Now we are not saying to or not to, but we are going to provide the most natural method.
One that we like for the simplicity and to make sure that we are abiding by the principles that currently occupy this country.
For other countries, this can also work, as it is location interchangeable.
This is the easiest method for paying cryptocurrency taxes.
Not only does it flow smoothly and cost a one time fee, but it provides you with many different options for how you can do your taxes.
Some people hold long-term, some people short-term, others are mining, and others are even getting paid in cryptocurrency.
All of these are taxable actions in the United States and other locations.
That’s why this program makes it simple.
Let’s walk through it.
Start by heading here: Bitcoin.tax
Click the sign-up button that should be on the top right (I’m currently logged in).
After that, you will see this page.
Depending on if you are a trader or just a causal individual using cryptocurrency (you can be an individual trading) choose the best option for you.
Or sign up for free and take the program for a test-drive before actually purchasing the full version.
This is the trading page in which you will be able to add multiple different accounts and trades that you’ve done over the year or you’ve purchased the program for.
Scrolling down you’ll see...
When you click the +, it will drop down and show you exactly how to implement each of these different options.
For some, it will require getting the API code from the exchange, while for Coinbase and others you can just login.
Then it will automatically take every trade (only 20 if you did the free) and figure out your taxes.
Head to the next tab, and you’ll find the income section where you can upload payments, mining, airdrops, etc.…
Many people won’t know what to pay taxes on (like airdrops for instance) this can help make it easy.
And then comes the spending and how you’ve used your cryptocurrency.
After that, you have opening trading.
And finally, your calculation of taxes.
In this section, when you have your trades, income, spending, and opening input you’ll be able to select how you would like to pay taxes.
You’ll have many different options between long-term and short-term.
As well you’ll be able to choose first in, last in, first out and last out for trading options.
This is a section that would be good to go over with your CPA for you to make sure that you are doing this correctly (or use their service and they will set you up with a registered cryptocurrency tax specialist).
Lastly, you can export your reports to the next tab here.
In the top right, you can add your public addresses and manage your account - those are very self-explanatory.
What To Do Next About Cryptocurrency and Taxes
This is a movement.
It is something that can change the world, but it is going to be heavily looked at.
You’ll be able to make a fantastic profit in the coming years, there is the possibility of the rules and regulations getting tighter, and to protect yourself, a program like Bitcoin.tax makes sense.
That’s why we abide by the rules to help this movement grow.
Thanks for reading,
The GCA Team
Head Over To Bitcoin.Tax Below
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