How To Calculate Taxes on Crypto (Best Crypto Tax Software)

How To Calculate Taxes on Crypto (Best Crypto Tax Software)

Cryptocurrencies brought four main groups together: investors, traders, miners, and thieves. As the cryptosphere gained more traction, revenue authorities came knocking and started talking about the need for crypto traders and investors to pay tax.Then I realized: Ah, so Benjamin Franklin was right when he said nothing is certain in this world except death and taxes. As a crypto trader & investor, you need to pay taxes on your crypto income. If not, the tax collectors will come out looking for you. The question is, where do you start?Just like you, I had the same headache when I realized I had to start reporting my crypto activities for taxation.As a guide, I created this simple yet resource-packed piece to help you navigate the crypto taxation space.So what’s inside this guide? Why should you worry about crypto taxation?.Understand the crypto trading and investment activities that attract taxes and those that don’t. You will know the nuances of how to report your crypto revenue for taxation (no CPA needed). Above all, I’ll present you with the right tools and platforms to help you calculate and report your taxes hassle-free. Some tools we’ll explore together include:

TokenTax Zenledger CoinTrackingBitcoin TaxesCoin Tracker KoinlyReady? Let’s get started.Why should you be worried about taxes in crypto?Whether you are obliged to pay tax on your crypto activities or not depends on where you find yourself. Crypto taxation is a serious topic when you live in the US, Australia, UK, Japan, and France.These countries have clear-cut regulations on the taxes crypto traders are supposed to pay. The table below shows countries with crypto tax rules, how they classify cryptocurrencies, and the type of tax you’re obliged to pay as a trader. Which of your crypto activities are taxableLiving in any of the countries mentioned above doesn’t mean you will pay tax on every crypto engagement under the sun. These are the cryptocurrency trading and investment activities that require you to pay tax. These activities cut across almost all countries. When you sell your cryptocurrency for fiat (USD, GBP, AUD, JPY, EUR…)

niranjan

Niranjan is a author of several publications of Medicine and CryptoCurrency and Bitcoin experiences in life. He is a regular contributor to online article sites on the topics of life experiences, Crypto News allover the world.

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