How does self-employment income from cryptocurrency trading affect my tax return?

1 answers

• Koki HamanoAug 10, 2024 · 2 years ago
  As a self-employed individual, your cryptocurrency trading income has tax implications. The IRS treats cryptocurrency as property, meaning any income you earn from trading cryptocurrencies is subject to taxation. It's important to accurately report your cryptocurrency income on your tax return, just like any other self-employment income. Keep detailed records of your transactions, including the date, amount, and fair market value of each trade. You may also be eligible to deduct certain expenses related to your cryptocurrency trading, such as transaction fees or software costs. To ensure you're meeting your tax obligations and maximizing your deductions, consider consulting with a tax professional who specializes in cryptocurrency taxation. Remember, it's better to be safe than sorry when it comes to taxes!
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