I’m trying to have a low tax exit strategy. Hypothetically, do you have to hold your crypto on the exchange for one to two years or can you suddenly transfer it in and sell if it’s older crypto?I would like to have low capital gains taxes Any help is great your channel is awesome
Question: What if I move Crypto into Coinbase, buy and sell various coins but never go into USD and never transfer back to a bank account, do I still have to pay tax on that even if I don't ever go back to USD and to a US bank account? Thank you for any help.
I dont think wash sales apply to crypto just yet since the IRS treats crypto assets as property and not securities. I'm not sure if this is still the case but i am sure they will implement that at some point in the future if they havent already lol. please correct me if im wrong though!
I spoke to coinbase the other day and they said they give a cost basis to all crypto purchases of zero. That makes it impossible to harvest losses. Why tf they do that? How do I get the actual cost basis so I can get a much needed tax write off? Do any of those tax softwares give accurate an cost basis for crypto purchases?
Hello, i have just started coinbase and invested money in it this month and i want to withdraw some of my earning now they are asking to pay taxes. So i want to know how do i pay that? They have calculated that for me but I don’t know how to pay it. 😊
So if I use just coinbase for all my tradings I dont need to download any other taxes calculator for crypto, with the coinbase taxes report 1099-Misc will be more than enough correct?
If you sold any crypto last year then yes, that would count as taxable income. If you sold that crypto this year, then that would be reported on next year's taxes.
@@EverydayInvesting Recently i got mail from Coinbase, They informed me my coinbase account Taxable activity in the year of 2021. I am South Asian, my homeland is Bangladesh🇧🇩. Can you tell me my Tax Return to IRS is needed?
If you've added all your crypto accounts and see a negative, that means that the software is calculating a net loss for you over the previous year. It's saying that you lost more than you made. So you would still report or import this info on your tax return, but it would act as a capital loss for you (meaning a tax deduction). But just keep in mind in order for the software to be fully accurate you need to be sure to add all your crypto accounts (exchanges and wallets).
If you had miscellaneous earnings over $600 for the year, they will have sent you a 1099-MISC form. If you had miscellaneous earnings under $600 they may not have sent you a 1099 form, but you still need to report the earnings. You could either add that income in manually on your tax return or connect your Coinbase account to a crypto tax software which will calculate this for you. For instance, I used Koinly, and it was able to calculate my miscellaneous earnings for me. There is also a free option called Crypto. com Tax as well.
A tax return can always be amended (updated) but it's likely not necessary over such a small amount. If it is only a matter of $22, a tax advisor may likely tell you not to worry about it. But again, I am not a tax professional so this is not tax advice just my 2 cents.
Selling crypto is a taxable event, but buying it is not. So there is no need to report only buying. And any crypto you sell during this year (2022) will be reported during next tax season (2023). 👍 If you do plan on making a lot of crypto transactions throughout the year, then a crypto tax software would definitely help calculate everything for you come next tax season.
If you had miscellaneous earnings under $600 Coinbase may not have sent you a 1099 form, but you still need to report the earnings. You could either add that income in manually on your tax return or connect your Coinbase account to a crypto tax software which will calculate this for you. For instance, I used Koinly, and it was able to calculate my miscellaneous earnings for me. There is also a free option called Crypto. com Tax as well.
That is a good question. I am not sure how that would work if someone else is claiming you as a dependent on their taxes. And I don't want to give you the wrong information. It would be best for the tax filer to ask this question to the tax professional or tax service used. A tax return can always be amended (updated) but it may not be necessary over a small amount. If it is only a matter of $100, the tax advisor may likely tell you not to worry about it. But again, I am not a tax professional so this is not tax advice just my 2 cents.
