Credit Karma survey suggests that US bitcoin investors and traders don’t know that selling bitcoin could be considered a taxable event. While many know the potential ramifications of underreporting one’s income, but what they don’t know is that by not reporting losses, they are missing out on valuable deductions.
With cryptocurrencies losing up to 90% of their value and crypto investors suffering the subsequent losses in 2018. Reporting your losses seems to be fairly important for them. Jagjit Chawla, GM Credit Karma believes that many Americans don’t realize that they qualify for a crypto tax reduction as a result of their losses.
“Even though those who sold their bitcoin at a loss can typically claim a tax deduction we found that before taking our survey, 61% of respondents who lost money on bitcoin didn’t actually realize they could get a tax deduction for bitcoin losses.”
A US citizen who locks in their crypto losses could claim up to $3,000 and anything over that can be carried over to next years’ tax. While taxation procedures the ever-volatile cryptocurrency might seem a laborious process, you can avail all the help you need from TaxToken.
A startup by BaaS, TaxToken aids investors and traders in keeping track of their crypto tax. By Incorporating blockchain technology and artificial intelligence, it can automate the crypto tax filing process. This ensures quick, easy, and mistake-free crypto tax filing.
TaxToken co-founder Nathan Nichols elaborates about the platform:
“TaxToken was founded on one principle – it shouldn’t be difficult to file your cryptocurrency taxes. TaxToken is humbled and excited to officially launch our cryptocurrency accounting software and play our role in developing the blockchain ecosystem.”
The platform automatically syncs users’ exchanges and wallets, providing a user-friendly system that imports ICO’s, trade history, airdrops, mining, and payments. The user can read a compiled version of their transactions on their dashboard, which is available for reviewing and downloading.
The Credit Karma survey further ascertain that as and when investors are made aware of the tax deductions they can avail, more and more investors will willingly file their crypto tax.