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In many countries, cryptocurrencies are subject to tax.

  • Trading, spending or selling your crypto are often taxable events. 
  • To calculate your taxes, you will need to consider your capital gains and losses. 
  • You may also have to pay income taxes if you receive crypto as payment.
  • Every jurisdiction is different, so make sure you consult a tax advisor.

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MORE IDEAS FROM THE SAME ARTICLE

If you've bought crypto, HODLed, and sold it later, your tax liability should be fairly easy to calculate. Let's look at a simplified, US-based example. 

Here's the formula:

  • Fair market value - Cost basis = Capital gain / Loss
  • The...

  • Your taxes will depend on your location, how long you've held your crypto, the type of activity you're doing, and other factors. 
  • In general, you'll probably need to pay taxes or offset losses for selling but not when you buy.
  • As a fairly new...

  1. Buying cryptocurrency with fiat currency (except in cases where the purchase price is lower than the fair market value of the purchased coin).
  2. Donating cryptocurrency.
  3. Gifting cryptocurrency under a specific limit.
  4. Transferring cryptocurrency from one wallet you own t...

In many countries, tax authorities require you to file your taxes regularly. 

This can be the case even if you owe zero taxes or need a refund. Failure to file can result in fees, penalties, interest, confiscated refunds, audits.

  • Tax authorities such as the IRS, ATO, CRA, HMRC, and others track cryptocurrency transactions and enforce tax compliance. 
  • Large cr...

Generally speaking, taxable events include:

  1. Selling cryptocurrency for fiat
  2. Trading cryptocurrency for another cryptocurrency (e.g., BTC for E...

Getting your taxes right is essential. 

  • That’s why it's recommended to get professional help calculating your tax bill if you have any doubts. This may be the case if you’ve been trading and not just investing. 
  • The tax implications of regular trading are much more complicated....

A taxable event is a transaction or activity you're required to pay taxes on.

  • A taxable event in one country might not be one in another. 
  • Typically, transactions involving the sale of commodities, investments, and other capital assets are all taxable. 
  • Selling or tradi...

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