Cryptocurrency has been facing some of the largest leaps in growth ever since the pandemic started. Bitcoin grew 100% and Ethereum 470%. The next big crypto, Solana has seen an upscale of 13,300% and even Doge the meme coin is up by 49,000%. We all know that big money means big taxes. We can expect taxes soon although the trajectory is not yet known. Cryptocurrency Trading is considered as an investment or an asset just like a stock. Selling assets get the government big profits through taxes particularly if coins are owned for a year or less. The interest that is earned while staking or lending is also taxable. There is no direct calculation for crypto taxation. It depends on how the holders and investors trade, use and so on.
The US government is expecting to raise $28 billion in the next ten years with crypto taxing. The currencies stored in the digital wallets will be the record shown to report tax information to brokerages upon which the owner of the wallet will be taxed. As of now, starting from 2024 anyone who receives more than $10,000 in crypto should report with the required identification details about the sender of the currency, just like how it works with fiat.
Since this is a new concept even for finance experts, investors are having to do their own accounting because most digital-asset exchanges don’t release form 1099-B. In such cases, people like Yerusalem Your Crypto Tax Strategist offers crypto tax coaching.
Just like how one has to learn to properly invest in crypto to have positive gains from it, it is also advisable to learn tax strategies that can help you avoid humongous taxes on your coins. This could be a very essential piece of knowledge because crypto is definitely the future and given that we cannot avoid regulation and the rate at which it is growing only adds to the stance. The key is to prepare in advance with the correct tax strategies and to be proactive. It is better to work with a crypto tax expert who invests in crypto and someone who can give customised ideas. Everyone is going to be taxed differently and thus there is no one strategy that works for all. Yerusalem Your Crypto Tax Strategist schedules calls with individual clients and helps prepare a strategy just for them.
Other than crypto tax services, Yerusalem Your Crypto Tax Strategist offers inclusive Tax Planning and Strategizing for all combined income.
About Yerusalem from Yerusalem Your Crypto Tax Strategist
Yerusalem has been a tax practitioner for 6 years and investing in the crypto space for 4 years. Her enthusiasm for blockchain technology, decentralization, and web3 have led her to combine her love for tax strategies and crypto together. Yerusalem works with a team of experts who bring in in-depth knowledge to ensure that the client receives quality individualized crypto tax strategies. To schedule a crypto tax strategy session, visit the website www.cryptotaxstrategist.com