Don’t hide virtual currency, Bitcoin from IRS this tax season


Many people couldn’t help but brag about their brilliant Bitcoin investments if they rode any of the bull run in 2021.

But when it comes to handling taxes? Many don’t have a clue of what to do. Did you see a gain? A loss? How could I owe taxes if I never cashed out? 

A sizable group of investors only began dabbling in Bitcoin and other digital currencies in 2021 — and now they’re dealing with tax consequences for the first time. It won’t be as simple as looking at a stack of 1099 tax forms sent by a brokerage or others because those forms are not currently required to be issued to help you determine your gains or losses for digital currency. 

“There’s a huge burden on everyday individuals to accurately compile their taxes,” said Austin Woodward, CEO of TaxBit, which was founded in 2018 and provides tax and accounting software for the tokenized economy, as well as ways for traders to track the real-time tax impact of their virtual currency activities. The TaxBit network supports more than 20 currency exchanges to give customers year-round tax solutions. 

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