Do I need to pay Cryptocurrency Taxes?
Do I need to pay Cryptocurrency Taxes?
Yes, you are required to report losses as well as gains on all H2cryptO exchange transactions. The Internal Revenue Service holds all investors liable for reporting income and transactions whether you receive a tax form from a crypto exchange or not. Cryptocurrency is considered “property” for federal income tax purposes and is treated like a capital asset(stock or bond). H2cryptO Exchange provides all transaction history available to clients for this purpose.
IRS form Q36-Q38 can be used as a trusted guideline to report.
Form 8949 can be used to report capital gains and loss. The transaction report we provide can be used to fill out the info in this form.
Form 1099-MISC (Miscellaneous Income) can be used to report any rewards/fees from staking or any other promotional form of income(educational reward, airdrop). This form may be filled out if earnings have exceeded $600 USD.
Form 1040(Schedule D) can be used as well for gains and losses reporting. This will summarize all information to report capital gains.
H2cryptO is not responsible to provide any tax advise. We suggest to consult with a licensed tax advisor. Cryptocurrency laws are different in every country. Failure to report cryptocurrency losses as well as gains, could result in Internal Revenue Service levying penalties or possible jail time.
