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PR: Write off Crypto Losses With CoinTracking.info

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This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Last Thanksgiving, Bitcoin was in the middle of a bull run that would result in a record high of $19,511 just before Christmas. Now, Bitcoin is worth just $3,752.

If you bought Bitcoin and other cryptos when their prices were high, there’s a silver lining around the gray state of crypto markets now: any losses you take this year could place you in a lower tax bracket. What’s more, claiming those losses is easier than you might assume.

For the purposes of taxation, the US and most other governments consider cryptocurrencies to be assets. This means that whenever you trade cryptocurrency, the transaction falls into one of two categories: a capital gain or a capital loss.

Capital gain: A capital gain occurs when you sell cryptocurrency for more than the amount that you paid to purchase it.
Capital loss: If you sell cryptocurrency for less than the amount that you paid for it, this is considered to be a capital loss.

You have to sell or buy an asset to trigger a taxable gain or loss. Once you decide to make a move, tax authorities consider the loss to be “realized.” If your loss is great enough, you may be able to use it to enter a lower tax bracket.

One of the biggest benefits of claiming a loss is that you can offset income gained from other sources.

In the US, the IRS lets you deduct up to $3,000 worth of net capital losses each year from the amount of money you’ve earned at your day job. If the amount you lost was greater than $3,000, you can get another deduction of up to $3,000 when you file your taxes next year.

If you currently make just over $50,000 per year at your job, that $3,000 cryptocurrency loss could place you in a lower tax bracket. This could result in thousands of dollars of tax savings.

What’s more, if you’ve earned some income through stocks or through the sale of property, there’s no limit to the amount you can deduct from those revenues.

If you’re in the $38,701 – $82,500 tax bracket and your crypto capital loss deduction puts you below the $38,700 mark, you’d only have to pay $952.50 plus 12% of any amount over $9,525. But if you made $38,701 or more, you’d have to pay over four times as much in taxes, plus 22% of any amount over $38,700.

In other words, if you fail to deduct your crypto losses and you fall into the third bracket as a result, you’d have to pay at least $4,453.50 to the IRS. But if you do file your losses and make it into bracket two, you’d pay just $952.50.

Total tax savings: $3,501.50.

If you’re married and filing jointly or widowed, moving into a lower tax bracket can result in even more tax savings. If you made $77,402 in 2018, you’d have to pay the IRS $8,907 and change.

Dropping down to the $19,051-$77,400 tax bracket by filing a crypto loss would save you $7,002.

In addition to cryptocurrency traders, cryptocurrency miners can use deductions to reach lower tax brackets.

A notice that the IRS published in March of 2014 provides some relevant details:

“…when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income.”

If the value of the cryptocurrency you mined decreased and you decide to sell it, then that would mean that you have triggered a capital loss. You can report this loss in the same way that you would if you bought and then sold your coins through an exchange.

IRS analysts told CNBC that electricity costs and other expenses may be written off as well.

Figuring out how much you’ve made or lost can be a headache, particularly if you haven’t been keeping track of your purchases or if you placed a huge amount of trade orders last year.

Sorting out how much you lost or earned requires access to historical pricing data. Without that historical data, you won’t be able to determine what the price of your crypto asset was when you bought and sold it.

Fortunately, there is software available that can crunch all your crypto tax data for you.

With CoinTracking.info, can import your transactions from all your cryptocurrency wallets and exchanges. The interface walks you through how to do the imports.

At the end of the import process, you can download IRS form 8949. This is the form you need to submit to report your loss.

Other download options include CSV, TaxACT and TurboTax.

If you use a crypto tax calculator to do your own taxes, filing your taxes is a straightforward process. All you have to do is take the total from IRS form 8949 and transfer that to IRS form 1040 Schedule D.

In fact, most CPAs that work with crypto traders use CoinTracking and other publicly available software to determine what their clients owe. These tools are not difficult to use. Many have free trials, which let you see how they work for yourself before you commit.

If you lost money in crypto markets last year, you may be able to offset some– or perhaps even all– of those losses at tax time. Reporting your capital losses might help you move to a lower tax bracket. If your deductions qualify you for a lower bracket, filing them could save you thousands of dollars when you submit your taxes this year.

Press Contact Email Address
alex@cointracking.info

Supporting Link
https://cointracking.info

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post PR: Write off Crypto Losses With CoinTracking.info appeared first on Bitcoin News.

US Lawmakers File Bill to Exclude Cryptocurrencies From Securities Definition

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Two U.S. congressmen have introduced a bill aimed at amending the country’s securities laws to exclude cryptocurrencies from the definition of a security. The bipartisan bill also seeks to adjust taxation and create tax exemptions for certain cryptocurrency transactions.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Bill Introduced

US Bill to Exclude Cryptocurrencies From Securities Definition FiledU.S. Reps. Warren Davidson, R-Ohio, and Darren Soto, D-Fla, introduced a bipartisan bill on Thursday aimed at excluding cryptocurrencies from the definition of a security. The bill, called Token Taxonomy Act, seeks “To amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to exclude digital tokens from the definition of a security,” according to the text of the bill.

US Bill to Exclude Cryptocurrencies From Securities Definition FiledIt also directs the Securities and Exchange Commission (SEC) “to enact certain regulatory changes regarding digital units secured through public key cryptography.” Moreover, it seeks to “adjust taxation of virtual currencies held in individual retirement accounts, to create a tax exemption for exchanges of one virtual currency for another, to create a de minimis exemption from taxation for gains realized from the sale or exchange of virtual currency for other than cash, and for other purposes.”

Cnbc explained that the bill resulted primarily from a September roundtable hosted by Davidson. More than 50 industry participants attended including Fidelity, Nasdaq, State Street, Andreessen Horowitz and the U.S. Chamber of Commerce, the news outlet noted, adding that this bill has been in the works for months.

Changing the Law

US Bill to Exclude Cryptocurrencies From Securities Definition FiledThe bill introduced on Thursday defines digital tokens and clarifies why securities laws do not apply to cryptocurrencies. Currently, the SEC uses the Howey Test to determine whether a cryptocurrency is a security.

Last month, U.S. District Judge Gonzalo P. Curiel ruled that the commission was not successful at showing the court that Blockvest tokens were securities based on the Howey Test. The agency has been cracking down on numerous cryptocurrency projects this year.

SEC Chairman Jay Clayton has emphasized that he does not intend to update the commission’s standards to include cryptocurrencies. At the Senate hearing earlier this year, he said that every ICO he had seen is a security. The only exceptions were BTC and ETH, he clarified, noting that the two cryptocurrencies are regulated as commodities by the Commodity Futures Trading Commission (CFTC).

“This week’s bill is largely symbolic,” Cnbc elaborated. “Friday is likely the last day Congress is in session and the bill will need to be reintroduced next year, when Democrats are in control of the House.”

Do you think cryptocurrencies will be excluded from the definition of a security? Let us know in the comments section below.


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