I sold my cryptos. How do I pay tax for it?
I am going to take help of H&R block, but I am not sure if they will help me pay the tax for it.
Did it with h&r last year. They only wanted a one liner for total buy price and total sell price to figure out gains/losses. Told me to keep all the transaction data in case I get audited. They didn't want all the crypto trade details.
Do I average out the total buy price? I sold all of them in 1 go also after 1 year so that comes in long term capital gains tax.
Total buy, not average. They only wanted to see total cost for all my buy and sell for the year (for crypto that completed a round trip trade of buy and sell). Separate out any short term and long term. You can go to h&r and talk to them on exactly how they want you to present them with the data. All I know is what they told me to do last year. Will speak with them again this year.
I have the same problem. Bought and sold many times over. I don’t think putting a 1 liner for bought vs sold is enough ! What is the right way to do this ?
Not saying that it's the right way to do it. I'm saying this is directly what H&R Block told me to do and how they filed my taxes last year. I kept all spreadsheet of my transactions and keep that in case it's needed. H&R didn't want to file the asset form with each trade. The sites listed below are popluar to use, but can be issues with trading platform like binance, where for myself and several posters, all our transaction history was wiped, or at least not showing on our profiles.
Isn’t it like selling gold and silver? That’s different from the way stock gains are taxed.
Search Reddit for it. iirc I saw people recommend a website called Bitcoin.tax but do check the crypto subs
You put on Capital Gains and Losses form.
use bitcoin.tax or cointracking.info
What if it was sold within less than 30 days? Will the loss be considered as wash sales?
Wash sales apply only to securities while crypto is a property. Although, if you’re claiming huge losses against tax, I dunno...
I lost around 3k last year. Will claiming that much be a huge deal?
Use bitcoin.tax and them import the report using turbo tax. Very simple to do.
Same as stock. If you held less than a year, then same tax as ordinary earnings on the profit. If you held longer than a year then capital gains (15%) on the profit. Write a check.
Thanks for the info!
Incorrect, crytpo is property according to the irs. Suggest you read yourself instead of listening to someone on blind lol