• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
crypto taxes IRS bitcoin tax
Nexo Logo

Crypto Taxes: Bitcoin Investors Get An Additional Month To File From IRS

Tony Spilotro by Tony Spilotro
1 year ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

Bitcoin and other crypto assets are in a bull market, and anyone who bought in during 2020 is in some serious profit for the tax year. Lucky for them, however, is that the IRS has extended the tax filing deadline in the United States, giving investors a bit more time to get their statements reconciled, and reporting organized.

Here’s all crypto investors need to know about the tax deadline extension, and what that they need to report.

Breaking Down The Bitcoin Tax Burden You Might Not Be Aware Of

Investing in cryptocurrencies like Bitcoin, Ethereum, and altcoins is so simple, anyone can do it by downloading Coinbase or Cash App and making a few swipes and clicks.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Despite the accessibility, these are assets that are serious business when it comes to accounting and taxes. Any return on investment earned on cryptocurrencies by cashing out, is immediately a taxable event involving capital gains.

Related Reading | Why US Crypto Investors May Need To Consider Amending Past Tax Returns

Each trade made between one type of coin to another, every time BTC is spent on goods, and even some wallet transfers can be considered taxable events. Airdrops, if and when sold, are an entirely taxable capital gain.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

The rate at which capital gains are taxed also vary based on a variety of factors, such as short or long-term.

bitcoin irs crypto tax

If you bought coins between the two lines, then you could owe capital gains taxes | Source: BTCUSD on TradingView.com

Simply put, the laws and processes surrounding cryptocurrencies are a real sore spot on the technology currently, and are confusing at best. Congress members have blasted the IRS in the past, but tax code has yet to be updated to match the emerging technology, even though filing documents now require you to disclose if you hold such “virtual” assets.

Failing to disclose, or disclosing improperly, can lead to fines, or worse. Luckily, the IRS has extended the tax filing deadline in the United States until May 17, 2021, from the normal April 15 deadline.

The IRS commissioner claims that the move was done to “help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax-administration responsibilities.”

This gives crypto investors another month to get their statements in order.

What To Do If You Still Haven’t Prepared Your Crypto Taxes

Procrastinators sighing in relief and wondering where to now begin can turn to tax prep services like Bitcoin.tax, or can consult with any certified CPA for guidance. Bitcoin.tax plugs into popular exchange APIs like Coinbase and Binance, doing some of the footwork and accounting for you, however, you’ll need to track any airdrops and other transactions manually using the software.

Related Reading | If This Is You, You May Not Need to Report Crypto Tax Gains to the IRS

For those that have bought Bitcoin, but done nothing but hold, you’ve got nothing to worry about right now. Simply buying and holding crypto isn’t a taxable event itself.

But if and when you do sell your coins of any kind, whether its into Bitcoin or altcoins, or back into cash, you’ll have some reporting to do at the end of the tax year, in which you’ll still want to hold onto the above intel for when you eventually need it.

We’ve done our very best to provide some guidance on who needs to report what, but there’s no substitute for advice from a certified CPA who understands crypto tax law. Be certain you understand all reporting requirements, as only you are ultimately responsible for your taxes.

Featured image from Deposit Photos, Charts from TradingView.com
Tags: bitcoinbtcbtcusdBTCUSDTcryptoirstaxesxbtxbtusd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a global remote work leader with a decade of award-winning content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter at @tonyspilotroBTC and feel free to drop me a line if you would like to work together.

Related Posts

Crypto starts week Positive, Bitcoin Bulls Prep For A Breakout

Crypto starts week Positive, Bitcoin Bulls Prep For A Breakout

10 hours ago

Bitcoin Taker Buy/Sell Ratio Approaches Bullish Cross

14 hours ago
bitcoin

Bitcoin Investors Gripped By Fear, Any Sign Of Hope Remain?

15 hours ago
Lido

Lido (LDO) Sheds 58% Of Its All-Time High TVL At $11 Billion

17 hours ago
Bitcoin

Bitcoin Reclaims $30K Territory After Recent Weeks’ Struggle – Analysts Weigh In

1 day ago
bitcoin hammer reversal

Hammer Time: The Bullish Signal That Could Save Bitcoin

2 days ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Global Fit Club: The World’s 1st gym that pays it’s members set to launch

May 24, 2022

The Last Palmswap Trading Competition Before Mainnet Launch. Up to 500K PALM in Prizes – for free!

May 24, 2022

Cardano NFT Disruptor – EGO.COM Enters the Game

May 24, 2022

LBank Weekly Listing Report, 23th May 2022

May 24, 2022

Muu Inu (MINU) Is Now Available for Trading on LBank Exchange

May 24, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.