5 Essential Tips for Preparing Your Cryptocurrency Taxes

Paying taxes on Bitcoin and other cryptocurrencies is becoming a priority for individuals in the US after the IRS announced on July 2nd, 2018 that one of their core campaigns and focuses for the year is the taxation of virtual currencies.Because cryptocurrencies are treated as property in the eyes of the law, they are subject to capital gains and losses rules just like stocks, bonds, real estate, and other forms of property.The challenge with cryptocurrency in regards to taxes is that the data making up your crypto buys, sells, trades, transfers, mining income, forks, splits, air drops, wallet transactions, and other crypto activity is likely scattered across many different platforms and exchanges. Most exchanges have an option that allows you to export your complete trading history.Having this data on hand will make the reporting process easy whether you are doing calculations by hand or with the help of crypto tax software.Cryptocurrency that is received as income is treated differently than crypto trades for tax purposes.