Managing Cryptocurrency
Financial Reporting
Security Measures
SERVICES
Cutting-Edge Accounting Tools
for your Growing Business
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TESTIMONIALS
Frequently Asked Questions
Yes, all taxable event resulted from sale of cryptocurrencies are to be reported be it loss or gain.
Yes, all trade/swap from one crypto to another trigger a taxable event.
Mined crypto is taxed based on the FMV at the time it was receive. Staking rewards are taxed similar to mining proceeds, receipt of principal though is not taxable. New coins from hard forks are generally taxable as ordinary income at FMV.
Tax is certain, hence all trades are deem taxable. However some strategies may lessen tax implications.
Tax-loss harvesting: If you have some losing Bitcoin trades, you can sell them to offset capital gains from other investments. This can reduce your overall tax bill.
HODLing (Holding On for Dear Life): If you hold your Bitcoin for more than a year before selling, it qualifies for long-term capital gains tax rates, which are typically lower than short-term capital gains tax rates.
Strategic selling: Try to plan your trades to minimize taxes. For instance, consider selling only when necessary and avoiding unnecessary trades that might generate small, taxable gains.
No, generally you don't have to pay taxes if you transfer crypto from one wallet to another, as long as both wallets are yours. This is because transferring crypto between your own wallets is considered a relocation of assets, not a taxable event. You still own the same crypto, just in a different location.
Crypto Accounting Done Right for your Growing Business
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