FAQ?

How do I report crypto on my taxes?

Any cryptocurrency capital gains, capital losses, or income events need to be reported on your tax return. You can report these events on Form 8949...Read more

Do I pay taxes on crypto if I lost money?

Reporting capital losses comes with a tax benefit. Reporting capital losses can offset capital gains and up to $3000 of personal income.Read more

What happens if you don’t report cryptocurrency on your taxes?

Not reporting cryptocurrency on your taxes is considered tax evasion. The maximum penalty for tax evasion is a $100,000 fine and 5 years imprisonment.Read more

What do I need to know about cryptocurrency tax reporting?

You should maintain the following records on your cryptocurrency transactions:

  • the date of the transactions
  • the receipts of purchase or transfer of cryptocurrency
  • the value of the cryptocurrency in Canadian dollars at the time of the transaction
  • the digital wallet records and cryptocurrency addresses
  • a description of the transaction and the other party (even if it is just their cryptocurrency address)
  • the exchange records

More items...

How to calculate your crypto taxes?

Crypto Mining Taxes. The formula for calculating your gains and losses is: Sale Price - Cost Basis = Capital Gains/Loss. The value of the coin at the moment it was mined is your cost basis (the amount included as ordinary income). To calculate your capital gain or loss, you have to subtract this amount from the price you sold the mined coins for.

What tax forms should crypto holders file?

You might need any of these crypto tax forms, including Form 1040, Schedule D, Form 8949, Schedule C, or Schedule SE to report your crypto activity. Form 1040 is the main form used to file your income taxes with the IRS.

How do I report bitcoin transactions on my taxes?

Virtual currency transactions must be reported on:

  • Checkbox on page 1 of Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. ...
  • F orm 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040 or 1040-SR), Capital Gains and Losses. ...
  • Form 1040 series or Form 1040 Schedule 1, Additional Income and Adjustments to Income. ...