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Visit and check CoinLedger and if you are ready to signup, enter this code CRYPTOTAX10 to get a discount.

CoinLedger.io is the leading cryptocurrency tax software on the market. Simply connect your exchanges and wallets and let CoinLedger calculate your taxes in minutes. Import generated forms into your preferred tax filing software such as TurboTax or TaxAct or send it to your tax professional.

Why you should get cryptocurrency tax software?

On March 5th, 2022, US Congress and the IRS makes moves to improve taxpayer compliance for cryptocurrency transactions virtual currency disclosure on form 1040. Beginning with notice 2014-21, the IRS has consistently taken the view that cryptocurrencies are property for U.S federal income tax purposes. Absent any specific statutory or regulatory exception U.S individual taxpayers are generally required to report gains realized on the sale of property including cryptocurrency and pay tax on these gains to remind taxpayers of this requirement form 1040 now specifically asks taxpayers whether they have received, sold, exchanged or otherwise disposed of any financial interest in any virtual currency. Cryptocurrency owners, beware that the IRS is trying to strip away excuses for millions of people who aren’t complying with the tax rules on them either advertently or on purpose, so basically, you’re playing with fire if you don’t report it. So what happens if you don’t disclose crypto activity this tax season if you don’t report transactions and face an IRS audit? You may be hit with interest penalties or even criminal charges and they are not joking, they’ve already been doing this for the past couple of years now.

So yes, you do have to pay taxes on cryptocurrency if you sell or exchange cryptocurrency. You’ll have to pay capital gains taxes if you receive crypto as payment or if you mine it it’s taxable income and yes you have to pay taxes on the sale of nuts the IRS treats NFTs short for non-fungible tokens the same as it does for any other real-world investment.

So when you trade any crypto like Bitcoin, Ethereum, or any other cryptocurrency for fiat or cash like the US dollar, that is taxable. Even when you trade crypto for another crypto, a lot of taxable events are occurring if you sell the cryptocurrency for cashless than 12 months from when you first bought it the transaction is subject to short-term capital gains which is your regular income tax well if you sell the same crypto for cash more than 12 months after you bought it you only have to pay the long term capital gains tax rate which is generally 15%, any rewards you receive from staking, airdrops, mining interest from lending or providing liquidity to liquidity pools gains realized from NFTs, any extra crypto you earn from participating in and interacting with DeFi protocols or from regular centralized exchanges is all taxable income. Yes! Crazy! Here’s the deal, do not mess with the IRS! Sure they can’t get everyone in the short term right now but all of our transactions are on the blockchain a decentralized transparent immutable ledger of every single move that we make.

Financial auditing is simpler than you think with this new technology and if the IRS wants you, they will get you 100%. And since crypto is new bleeding edge technology that is gaining popularity and adoption at a quick pace, this is what the IRS will do, they are going to tag a few people and make items out of them by throwing the book at them very hard even if their transgressions weren’t that terrible, the IRS is going to put people in prison, bleed them dry, and make their lives a living hell in order to deter other people from not reporting crypto activity Don’t be the person the IRS makes an item out of it, is not worth it we are all here to learna bout and invest in crypto to create a better world and achieve financial freedom but we can’t do that if we don’thave our actual physical freedom becausewe chose not to report crypto activity and go to prison.

Don’t be a US prisoner, pay your crypto tax, pay easy with CryptoLedger.io

Visit and check CoinLedger.io and if you are aready to signup, enter this code CRYPTOTAX10 to get a discount.

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