Unchained Everything You Need to Know About Your 2020 Crypto Taxes - Ep.210
Feb 2, 2021
Shehan Chandrasekara, Head of Strategy at CoinTracker and a CPA focused on cryptocurrency taxation, teams up with Dan Hannum, COO of ZenLedger and a crypto tax compliance expert. They dissect the ins and outs of crypto taxes, detailing IRS inquiries and the essentials of reporting yield farming income. Discover the nuances of taxable events, the reporting implications for mining and peer-to-peer transactions, and the complexities of NFTs. Plus, learn valuable tips for tax loss harvesting and the benefits of using crypto tax software for seamless compliance.
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2020 Crypto Tax Changes
- Consider the new placement of the cryptocurrency question on the 1040 form.
- Answer "yes" to the question "Did you receive any cryptocurrency?" even if you only purchased crypto, as it's the safest approach.
IRS Data Collection
- The IRS aims to collect data on cryptocurrency usage among U.S. taxpayers by prominently placing this question on the 1040 form.
- Answering "yes" doesn't automatically trigger an audit; it helps the IRS gather data and analyze taxpayer compliance.
Crypto as Property
- Understand that cryptocurrency is treated as property by the IRS and is subject to capital gains taxes on profits.
- Report your crypto transactions even if you have losses, as you can write them off and potentially get a refund.