If you’re anything like me, not only do I hate dealing with taxes, but I am usually extremely confused about what to do.
There is this deduction, that extra bracket, this loophole, that loophole, and the list goes on. In fact, I hate taxes so much, I made sure my business partner is a tax guru so he can take care of all that stuff. (Just kidding, Brian… kind of…)
If there is anything more confusing and frustrating than regular taxes, it’s trying to figure out what to do with the taxes you owe from your crypto holdings.
One thing that is NOT confusing is that the United States IRS (and many other tax agencies) consider cryptocurrencies to be property, just like real estate, stocks, or a vehicle. So, that means anytime there is a transaction with a profit or loss, that is considered a taxable event.
Imagine if you bought a variety of cryptocurrencies throughout the year and traded in and out of them multiple times at various prices points… how in the world would you keep track of all of that?
You could just not report your holdings and transactions, right?
If you think that you can fly under the radar with your crypto transactions, it’s worth understanding that most crypto trading platforms can (and will) start sharing their client information with the IRS and other tax agencies.
In fact, Coinbase turned over records of 13,000 of their clients to the IRS in 2018. But, that was only a fraction of the 500,000 clients that the IRS was requesting data on.
Considering that tax evasion is subject to a prison term of up to 5 years and a fine of up to $250,000, it’s probably a good idea to just file everything so you’re not putting yourself in a stupid situation.
The best way to do that is by using ProfitStance, which is the leading tax and accounting platform for the cryptocurrency industry. Not only is ProfitStance free to use, but they guarantee 100% accuracy, or else they’ll pay IRS fines and interest up to $1 million.
In full disclosure, the reason why I am sharing this is because we invested in ProfitStance several months ago. We met with their team and believed that they were solving a huge problem in the crypto world that hasn’t become a big issue… yet.
If you, or someone you know is holding cryptocurrencies, DO NOT skip reporting. It’s just not worth it in the long run. Use ProfitStance yourself, or share this with a friend.
It’s a quick process, free to use, and guaranteed with a $1,000,000.