Confusion surrounding crypto tax law in U.S. after $5 Billion in losses reported
16 Janvier 2019 - 01:40PM
ADVFN Crypto NewsWire
As cryptocurrency investors suffered massive losses as
BTC and other crypto fell by 80-90% in 2018, they should be
liquidating assets to lock in realized losses that can be claimed
on taxes. Offsetting other aspects of their tax bill, or maybe even
leading to a return.
According to data from Credit Karma, apparently this
was not what was happening. Only 34% of losses that crypto
investors had in the U.S. for 2018 have been realized. With this
data one can make the inference that most Americans may not
understand the laws surrounding crypto, and that you can claim your
losses through taxes.
Losses related to crypto investments in 2018 total $5 billion,
according to Credit Karma. Only a third of
these losses are realized losses. When investing in crypto in the
U.S. a cost basis is established for tax purposes. Selling an asset
also triggers a taxable event. Depending on how much that asset
appreciates or depreciates, or in the sake of crypto, how the
market is doing, determines what the individual that holds the
asset, is responsible for with their taxes. If their asset is never
sold the gains or losses are only paper gains or losses, therefore
they cannot be claimed on taxes. Due to the data supplied, those
living in the U.S. do not realize that their crypto assets must be
sold in order for it to be a taxable event.
Jagjit Chawla, A Credit Karma general manager
gives stats backing up why Americans do not realize they can get a
tax reduction for their losses:
“Even though those who sold their bitcoin at a loss can
typically claim a tax deduction we found that before taking our
survey, 61% of respondents who lost money on bitcoin didn’t
actually realize they could get a tax deduction for bitcoin
losses.”
In the United States crypto is also treated as property,
therefore they are subject to capital gains tax, much like real
estate. This tax varies by income levels, and can also depend on
how long you have held the asset. If U.S. citizens locked in crypto
losses they could claim up to $3,000 in losses. Anything over the
$3,000 can be carried over to the next year to offset potential
gains tax on the next year's tax bill. Of course if you have any
uncertainties with how you should file taxes with crypto, it is
highly recommended that you should speak to a certified CPA that is
well-versed in crypto, and all the tax hoops you need to jump
through when filing.
Bitcoin (COIN:BTCUSD)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
Bitcoin (COIN:BTCUSD)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024