What Is A Crypto Tax?
Most entrepreneurs who would like to start a small business. They hustle towards growing their business every day to become a success. However, success can never be guaranteed! It’s a combination of a lot of factors and decisions taken that lead towards a successful business enterprise. It’s not a piece of cake!
However, the one thing that is guaranteed are taxes. From Pizza to real estates- everything you startup will only be noticed by the eyes of the consumer if it’s innovative and one step ahead of its time.
Now entrepreneurs are always hustling hard for that big break and this is why we are going to introduce you something new and fresh in the crypto-town: cryptotaxprep.com
What does it do? Well the name in itself is pretty self-explanatory isn’t it. But, to be on the safe side we’ll tell you! This business specializes in accounting services and crypto tax!
Report Your Cryptocurrency Gains
Before Tax season was here, cryptocurrency was having the best time and many people won a small fortune in cryptocurrencies everyday! Unfortunately, tax season is here to make you stress out. Since, it’s time to pay the taxes on your digital gains.
Side income is always taxable, even if you’re an Uber driver or day trading crypto. Most young people, don’t give the earned money to IRS for the capital gain which becomes an issue later on. There are about one-third millennial’s who don’t report their side income on their tax returns. Many of them do not do it because everyone else is not doing it. Don’t be a fool and make the smart choice or pay the consequences later!
Nobody likes paying their taxes, especially on digital currency. No matter how tempting evading your taxes become, it can actually make your daily earning difficult. You will end up finding yourself in a bad position with the IRS. Investors are under the radar of the IRS. Pay your taxes kids! Or prepared to be in trouble.
All Are Cryptocurrencies Taxable Or Not?
If you must know, buying Bitcoin or any other virtual currency is not taxable in itself. You actually pay taxes on your cryptocurrencies when they are traded or sold or spent. But it mainly comes down to your capital gains.
Nevertheless, the good part is that your taxes always vary based on how long you have had the assets or how much income you have made in the whole year. Cryptocurrencies are treated as capital assets by the IRS just like bones, stocks and other valuable property. Since a number retailers have started accepting crypto as a mode of payment.
There are quite a wide range of cryptocurrencies now. For instance there is Dash, Monero, Bitcoin Cash, Litecoin, and Ether. Food restaurants are also making their way towards you, with Subway and Virgin Galactic on the lead!
But, one does wonder if every time you get a foot-long sub in your digital currency you will have to report it to the IRS? Well you have to report! However, it might sound insane and hectic. Don’t worry it will save you in the long run. Better pay your taxes than be sorry later no?
So, are you happy about the fact that taxes have to be paid on your crypto?