MUNICH, Germany, April 03, 2019 (GLOBE NEWSWIRE) -- CoinTracking.info, the software company behind the world’s leading cryptocurrency tax calculator, is reminding US-based cryptocurrency traders that the IRS will let you deduct up to $3,000 in cryptocurrency trading losses from your day job income. The deadline to file for tax year 2018 is midnight on April 15th.
Understanding crypto tax deductions
Each time you sell cryptocurrency, you trigger a taxable event. That means that if you didn’t sell cryptocurrency in 2018, your loss or gain has yet to be realized. In other words, if you didn’t sell, you probably don’t have to pay taxes on your cryptocurrency holdings.
If you sold your cryptocurrency asset for more than you paid for it, it’s considered to be a capital gain. Capital gains add to your tax burden because they increase your taxable income. Capital losses do the opposite: they reduce your taxable income.
Failing to report your cryptocurrency gains is a big mistake
“The vast majority of cryptocurrencies aren’t completely anonymous,” says CPA Bryce Welker of Crush the CPA Exam. “Bitcoin and most digital currencies record every transaction on a ledger which is accessible to the public. Armed with this knowledge, the IRS could potentially use the tools at their disposal to connect your Bitcoin and other digital currency addresses to you.”
Find out where you stand with CoinTracking.info
CoinTracking.info automatically imports your trading data and produces a tax report, which you can use to file your taxes. There’s even an IRS form 8949 generator, which further reduces the amount of paperwork you have to do. IRS form 8949 is the form that you need to submit with your taxes to file a capital gain or loss.
If you initiated 100 trades or less in 2018, you can use CoinTracking.info for free. There’s also a demo account you can use to explore how it works before you sign up.
About CoinTracking.info
CoinTracking.info’s creators first debuted their software in 2013-- and they’ve been adding new features ever since. Features like support for over 75 exchanges and reports like an IRS form 8949 generator, a FBAR report, top-rated mobile apps, API integration and other powerful features have helped it earn credibility from both cryptocurrency traders and cryptocurrency CPAs.