One of the biggest mistakes many new or novice investors will make is bypassing paying their capital gains with any cryptocurrency you have invested. Many new investors make a mistake, thinking if there is no paper trail, how will l get caught for not paying taxes?
Cryptocurrency is no different than you buying shares with any stock, real estate and gaining a capital gains profit with that investment. You have to include all capital gains when you file your income tax. Strongly advise you to speak to a tax consultant and making sure you have a well-planned strategy with what you may have to include with your tax return.
If you want to understand more about this topic you can review the information on this link. Read More on how to cut and save on your crypto taxes.
If you have a cryptocurrency wallet and you have made a profit from your investments as long as you have not taken it out, you are not required to pay taxes. Again you must seek professional advice from a tax attorney or a tax consultant in your country.
Five crypto tax tips
- Speak with a professional accountant or a tax attorney when you begin investing within the crypto platform.
- 1) Become a long term investor
- 2) Save a portion for your taxes from your earnings with your investments
- 3) Keep detailed records with all your crypto investment transactions.
- 4) Hire a tax attorney or an accountant to help you file your taxes. Especially if you think you owe back taxes.
- 5) If you use it as a gift or donate your cryptocurrencey earnings your not required to pay taxes, as long as you have not sold your cryptocurrencey.