Did You Trade Cryptocurrency in 2021? If So, You May Owe Tax

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Whether you are involved in cryptocurrency or not, it is certainly part of our current financial environment and one we need to consider in our business and personal transactions today. Before jumping into cryptocurrency, be sure to do your due diligence as there’s a great deal to learn about it. Check these facts about crypto:

  • A relatively new form of currency, cryptocurrency is completely digital and it uses encryption to generate money in verifying all transactions.
  • Digital tokens/“coins” are kept and distributed on a decentralized ledger called the blockchain.
  • Bitcoin was the first decentralized digital coin created in 2008 and it went public in 2009.
  • Today, Bitcoin leads other cryptocurrencies in many respects such as market capitalization and popularity.
  • Cryptocurrency is used to buy a multitude of goods and services, and used as investments such as stock, gold and more.
  • Cryptocurrency is taxable and we can help with that.
Yes, U.S. taxpayers must report cryptocurrency sales, payments, conversions, and income to the IRS – as well as to your state tax authority. Every transaction has different tax implications.  
It’s tax time and can help even with the most challenging of taxes, personal and business. Call 888-297-3321.