Tuesday, 02 June 2020

IRS is Accepting Cryptocurrency Tax Returns and Refunding Overpayments

The IRS is accepting cryptocurrency tax returns and issuing tax refunds to crypto investors that experienced net capital losses in prior years

CryptoTrader.Tax, a software platform for cryptocurrency tax reporting, has announced that dozens of users have reported that their tax returns containing their crypto losses are being accepted by the IRS—the U.S. tax collecting agency. This means that users who are accurately reporting their cryptocurrency investments in accordance with U.S. tax law are receiving tax refunds on their losses from the government—even in prior years. Given the nature of the investor’s losses, some of these tax refunds are quite substantial.

“Many cryptocurrency investors have lost money within the crypto markets over the past few years. CryptoTrader.Tax users are turning these losses into tax savings by accurately reporting them on their tax return” said David Kemmerer Co-Founder and CEO at Coin Ledger, the parent company of CryptoTrader.Tax.

Because the IRS treats cryptocurrency as property for tax purposes, the same capital gains and losses rules that apply to stocks and bonds also apply to cryptocurrencies. In other words, you need to report both gains and losses on your tax returns from your crypto transactions. Whenever you have more losses than gains in a given year, you incur a net capital loss. This loss reduces your taxable income to a certain extent, and reduces your overall tax liability.

2019 has been another year where investors have seen declines within their crypto portfolios. This means that the same tax reduction opportunities still exist.

The Company

CryptoTrader.Tax has tens of thousands of users on its platform today and has processed over ten billion dollars of cryptocurrency transactions. It has also partnered up with tax preparation giant Intuit TurboTax to bring cryptocurrency reporting capabilities to the mainstream., why is the entire digital currency asset class lagging? One possibility is a lack of actual institutional adoption. With Facebook’s Libra being shelved for the immediate future, cryptos appear to have entered a transitional phase. However, it may not last. Early 2020 is likely to bring some clarity to issues such as Libra and a formal BTC exchange-traded fund. While things don’t look great now, it is too early to label the gains of 2019 only a temporary bump in pricing.

source: prweb.com

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