Educational Video
Hey there crypto fans! I’m Bette Hochberger, CPA, CGMA. If you’re getting into the world of cryptocurrencies, it’s important to understand how to handle your taxes, especially when it comes to reporting your gains and losses. In today’s video, I’ll walk you through the process of filing crypto taxes using Schedule D.
What is Schedule D?
Schedule D is a part of the IRS tax forms used to report capital gains and losses. Whether you’ve traded Bitcoin, Ethereum, or any other cryptocurrency, you’ll need to fill out this form to report your transactions.
Why Do You Need to Report Crypto Taxes?
The IRS treats cryptocurrency as property, which means that every time you sell or trade it, you may realize a gain or loss. Reporting this is not just a good practice; it’s a legal requirement! Failing to report can lead to penalties, so it’s crucial to get it right.
Tips for Filing
– Keep Good Records: Maintain detailed records of your transactions to make tax season smoother.
– Stay Updated: Tax laws regarding cryptocurrencies can change, so keep an eye on IRS guidelines.
– Consider Using Software: Crypto tax software can simplify the process by automatically tracking and calculating your gains and losses.
Filing crypto taxes might seem tricky at first, but with the right approach and some organization, it can be manageable! Just remember to keep track of your transactions, calculate your gains and losses accurately, and fill out Schedule D correctly. Always feel free to schedule a meeting with us if you need assistance, we’re happy to help!
I’ll see you next time.
