CoinLedger

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Frequently asked questions

What is the cryptocurrency tax rate?

The cryptocurrency tax rate depends on the specific circumstances and can be categorized into three types: ordinary income tax, long-term capital gains tax, and short-term capital gains tax.

For ordinary income tax, if you earn cryptocurrency through various means such as your job, mining, staking, or airdrops, it is subject to income tax. The tax rate for ordinary income can range from 10% to 37% depending on your income level.

On the other hand, cryptocurrency disposals, which include selling crypto, trading crypto for other cryptocurrencies, or making a purchase with crypto, are subject to capital gains tax.

If you have held the cryptocurrency for more than a year, the disposals will be subject to long-term capital gains tax. The tax rate for long-term capital gains ranges from 0% to 20% depending on your income level.

If you have held the cryptocurrency for less than a year, the disposals will be subject to short-term capital gains tax.

Can you write off crypto losses on taxes?

Yes, you can write off crypto losses on taxes. Cryptocurrencies are treated as property by the IRS, and they are subject to capital gains and losses rules. When you realize losses after trading, selling, or disposing of your crypto, your losses offset your capital gains and up to $3,000 of personal income. Any net losses exceeding $3,000 in a given year can be rolled forward into future tax years. Capital losses can be used to offset an unlimited amount of your capital gains for the year.

How much can crypto losses offset?

Crypto losses can offset up to $3,000 of personal income and an unlimited amount of capital gains for the year. Any net losses exceeding $3,000 can be carried forward and used to offset gains and income in future tax years.

How do I import my crypto transactions?

To import your crypto transactions, you can use CoinLedger, a cryptocurrency tax software. CoinLedger integrates with your wallets and exchanges, allowing you to easily import your historical transactions. Once imported, the platform will calculate your gains and losses for all your transactions, including trading, staking, and NFTs. After reviewing your transaction history, you can generate your tax report with the click of a button. You can then download the completed tax forms to file yourself, send to your accountant, or import into your preferred filing software. CoinLedger is a trusted TurboTax partner, making it easier to report your crypto gains and losses.

How do I generate my tax report?

To generate your tax report for cryptocurrency transactions, you can use CoinLedger, a crypto tax software. CoinLedger allows you to import your transaction history from wallets and exchanges, preview your report with calculated gains and losses, and then generate your tax report with the click of a button. Once you have your tax report, you can download it to file yourself, send it to your accountant, or import it into your preferred filing software. CoinLedger is a trusted partner of TurboTax, the largest tax preparation platform, making it easier to report your crypto gains and losses.

How can CoinLedger save me money on my tax bill?

CoinLedger can save you money on your tax bill by helping you write off crypto losses. By using CoinLedger, you can easily import your historical transactions and calculate your taxes. CoinLedger also allows you to generate a tax report with the click of a button, which you can then download and use for filing your taxes. Additionally, CoinLedger is a trusted partner of TurboTax, making it easier to report your crypto gains and losses. By claiming your crypto losses, you may be able to offset your income and capital gains, potentially saving you thousands on your tax bill.