Crypto Taxes

More than 10 percent of Americans traded crypto in the last year — if you’re one of them, you’re probably wondering how your trades and other crypto activity will impact your taxes.

U.S. taxpayers are now required to report crypto sales, conversions, payments, and income to the IRS and state tax authorities. Moreover, each of these transactions has different tax implications.    

To determine if you owe taxes, look at how you used your crypto in the last year. Transactions that result in a tax are called taxable events. Those that don’t are called non-taxable events.  

Here are a few examples of taxable events:

  • Getting paid in crypto;
  • Getting crypto in exchange for goods or services: If you accept crypto in payment for a good or service, you’re responsible for reporting it as income to the IRS;
  • Mining crypto: If you mined crypto, you’d likely owe taxes on your earnings based on the fair market value (often the price) of the mined coins at the time they were received. Crypto mining as a business is taxed as self-employment income.

 If you’re just holding crypto, good news — there is no immediate gain or loss, so the crypto is not taxed. 

This is just a quick summary of a few of the key points to be aware of regarding crypto, but please let us know if you have specific questions before we prepare your return this year, and we will provide further advice.

How To Prepare For Crypto Taxes

 If you’re just holding Crypto, good news — there is no immediate gain or loss, so the Crypto is not taxed. However, if you have done transactions using Crypto, you are required to pay taxes on each transaction by law. 

If you’re someone who has to pay taxes on Crypto, then I have some good news for you. We have an exciting tool you can use to help track your crypto sales, conversions, payments, and income. This tool is called Ledgible. 

What is Ledgible? 

Ledgible is a crypto tax reporting software that tracks every crypto transaction you do by connecting your wallets, exchanges, and more. 

This software can calculate your crypto tax burden, provide current year planning, and prepare reports that summarize your crypto activity. In short, this software will make your life as a crypto investor so much easier. 

You won’t have to worry about overpaying in taxes. You don’t have to freak out because you did a million transactions last year and don’t even know where to start… 

Best of all, all you have to do to take advantage of these features is create an account. Once you create an account with Ledgible, our team at KDA will take responsibility for managing your account for you. 

This means you don’t have to worry about navigating the software, learning how it works, trying to interpret what the reports mean. Instead, leave all the work to us, and we will make sure you pay the least tax possible while also keeping you out of trouble with the IRS. 

If you’re a crypto investor, I highly encourage you to sign up ASAP. We are in the middle of tax season. This software will ensure that you don’t run into any hiccups and leave an extra tip for uncle Sam. 

If you want to learn more about this service, click the link below. 

Click here to learn more.

This is just a quick summary of a few of the key points to be aware of regarding Crypto, but please let us know if you have specific questions before we prepare your return this year, and we will provide further advice.

If you’re ready to sign up for leadable now and start saving on taxes, click the link below to sign up now. 

Click here to sign up now. 

Crypto Tax

START TODAY

Get your Crypto Taxes done by professionals in the industry.

SCHEDULE A CONSULTATION

QUESTIONS ABOUT A TAX ISSUE? ASK OUR EXPERTS.

Book Your Free Consultation

From Our Blog

  • How Gen Z will shift the working world

How Gen Z will shift the working world

April 20th, 2022|

How Gen Z will shift the working world It’s as predictable as the dawn: A new generation enters the workforce, they shake up the status quo and they push their coworkers outside their comfort zones. Some seasoned workers love the changes; others aren’t quite as thrilled. But somehow, from the Greatest Generation to the Boomers, from Gen X to Millennials, everyone manages to adapt—and most of the time, things [...]

  • Learn from your return with these tax takeaways

Learn from your return with these 5 tax takeaways

April 11th, 2022|

Whew! Your tax return is signed and sent, and Uncle Sam has been paid (or has paid you). So now you can forget about taxes until next year, right? Well … not quite yet. It’s a good idea to do a quick review each year of how the tax process went for you to see if there’s any wisdom you can tuck into your tax file for the next [...]

  • We know there are many myths or stereotypes about accountants, but most of them aren’t true.

5 Myths About Accountants

March 14th, 2022|

5 Myths about accountants When most people think about accountants, a vision of a dark room with a disheveled accountant hunched over a desk rapidly entering numbers into a calculator comes to mind. Well, we’re here to tell you…that’s just not true. Accounting may not be as electrifying as being a stunt artist, but it still has its thrilling moments—like the forensic accountants who took down famed mobster Al [...]

  • Learn how you can write off your taxes without the IRS agents knocking on your door. 

How To Write Off Any Business Expense Without Getting In Trouble With The IRS – Ask Yourself These 4 Questions

March 9th, 2022|

Write Off Any Business Expense As you know, being a business owner, you have over 73,000 lines of code that you can take advantage of for tax write-offs. However, it's not like going to the store and using several coupons until you don't have to pay anything.  There are some tax write-offs that you may not qualify for, and if you're not careful, you could get in trouble with [...]

  • 8 Steps On How To Turn Your Hobby Into a Business

8 Easy Steps On How To Turn Your Hobby Into a Business

March 9th, 2022|

Turn Your Hobby Into a Business Everyone on this planet that I know of has a hobby. These are things we do on the side for entertainment, for our health, or to earn extra money. We live in a time now where anyone can monetize their hobby and turn it into a business.  Some of these hobbies would have been considered impossible to make money from back in [...]

  • Your Ultimate Guide To Stay On Good Terms With The IRS

Your Ultimate Guide To Stay On Good Terms With The IRS – 5 Examples That Are Not Legal Write-Offs

March 8th, 2022|

Stay On Good Terms With The IRS Taxes are complicated, but they don't have to be. We have to follow the rules to avoid trouble with the law. These rules are in place to protect us and ensure everyone pays their fair share in taxes.  These same rules also offer a way for American citizens to save money on taxes; however, before we talk about that, let me [...]