How do tax authorities know about my cryptocurrency? - Deepstash
Getting started with Cryptocurrency

Learn more about crypto with this collection

Understanding the basics of cryptocurrency

How to store cryptocurrency securely

Risks and benefits of investing in cryptocurrency

Getting started with Cryptocurrency

Discover 84 similar ideas in

It takes just

13 mins to read

How do tax authorities know about my cryptocurrency?

  • Tax authorities such as the IRS, ATO, CRA, HMRC, and others track cryptocurrency transactions and enforce tax compliance. 
  • Large cryptocurrency exchanges
  • Governments use data analytics tools such as Chainanalysis to pinpoint cryptocurrency users. 
  • The IRS and other tax authorities also partner and share data with other governmental bodies, academic institutions, and international governments to share information about cryptocurrency usage.

60

336 reads

MORE IDEAS ON THIS

What are taxable and non-taxable events?

What are taxable and non-taxable events?

Generally speaking, taxable events include:

  1. Selling cryptocurrency for fiat
  2. Trading cryptocurrency for another cryptocurrency (e.g., BTC for ETH).
  3. Spend...

67

438 reads

Closing thoughts

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....

57

334 reads

How do I calculate my taxes?

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...

60

312 reads

What happens if I don’t file my cryptocurrency taxes?

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.

58

359 reads

The following are generally not considered taxable events:

  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...

63

415 reads

What’s a taxable event?

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...

64

365 reads

TL;DR

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 r...

66

567 reads

Do I have to pay taxes when I buy or sell crypto?

Do I have to pay taxes when I buy or sell crypto?

  • 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...

70

1.03K reads

CURATED FROM

CURATED BY

cryptostash

Don’t Risk More Than You Can Afford to Lose!

stash-superman-illustration

Explore the World’s

Best Ideas

200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.

An Idea for Everything

Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.

Knowledge Library

Powerful Saving & Organizational Tools

Save ideas for later reading, for personalized stashes, or for remembering it later.

# Personal Growth

Take Your Ideas

Anywhere

Organize your ideas & listen on the go. And with Pro, there are no limits.

Listen on the go

Just press play and we take care of the words.

Never worry about spotty connections

No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.

Get Organized with Stashes

Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.

Join

2 Million Stashers

4.8

5,740 Reviews

App Store

4.7

72,690 Reviews

Google Play

Sean Green

Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.

Shankul Varada

Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.

Ashley Anthony

This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!

samz905

Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.

Jamyson Haug

Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.

Laetitia Berton

I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!

Giovanna Scalzone

Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.

Ghazala Begum

Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates