Crypto Taxes – As April 17th closes in Credit Karma, the highly used Tax platform in the US, announced that less than 100 people have reported capital gains from cryptocurrency investments in 2017. CNBC reported that this figure was out of the 250,000 most recent tax filers.
Back in early February, the beginning of the tax season, Credit Karma reported the same numbers. Back in 2015, the Internal Revenue Service (IRS) reported that only 802 individuals total had cryptocurrency gains or losses in their taxes. The IRS had provided help with filing your taxes and adding cryptocurrency since March of 2014. Bitcoin and all other altcoins are treated as property, and the purchase, trade, mining, or sale of cryptocurrency is a taxable event.
>>. Taxes Causing Crypto SellOff
Crypto Taxes – Credit Karma
The GM of Credit Karma, Jagjit Chawla, told CNBC in an interview that there is a “good chance that the perceived complexities of reporting cryptocurrency gains are pushing filers to wait until the very last minute.”
I’d be curious to see if more taxpayers applied for an extension or had to use a firm to do their taxes because they weren’t able to figure out their gains and losses in their cryptocurrency investments. These numbers should come to light down the road, as this is by far the busiest few days tax preparers and accountants have all year as they scramble to meet the deadline.
With only two days until Tax Day, the market has boomed as Bitcoin raised $1,000 dollars, in less than an hour yesterday. Fundtrat’s Tom Lee predicted earlier in the month that the cryptocurrency market took a dip earlier in the year due to investors needing money to pay the capital gains tax. The cryptocurrency sell-off in Q1 2018 was close to $500 billion USD. It remains unknown if crypto investors took their earnings from the rise of digital assets in 2017 to pay this year’s taxes, but the market is on an upward climb now.
>> Cryptocurrency Tax Guidelines
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Sharon is a journalist based in Durban, South Africa. He has years of experience in writing for a number of print and digital platforms, ranging from sport to technology and of course, Cryptocurrencies.