How To Report Crypto Gains On Taxes?

If you hold assets during any given tax year, and that asset increases in value — even very little — each calendar year your gain is long-term. Sometimes short-period gains may be required to be reported, but the system isn’t perfect, so it can take a lot of time to sort through it all. This is why people are turning to tax software like TurboTax or H&R Block for help. If you pay an accountant or tax preparer most likely they will not assist with crypto taxes at all, therefore looking elsewhere can save time and money if possible. The truth is accounting comes down to numbers and record keeping, with numbers being more important than creative interpretations of statutes written by lawmakers who don’t understand technology or cryptos themselves.

You might also want to consider hiring the services of a crypto tax accountant who focuses solely on cryptocurrencies as well considering it has many unique facets that need proper attention which are beyond the realm of regular business accountants whose job is just securing transactions around their clientele within the confines laid out by government regulations … meaning they have little jurisdiction over your average coin-speculator / hodler / open source code contributor user. Taxes apply only when something was gained, so if you haven’t sold anything yet there are no gains nor losses… let alone capital gains! Not only do these virtual currencies exist outside off legal jurisdiction too but without one single ‘breach’ in solidity code or its