|
Crypto taxes in 2024
Taxes can be tough — and that applies doubly for crypto taxes, a new set of regulations that most people remain unfamiliar with. Luckily, eToro has created a video guide just for you, and partnered with CoinTracker to give you a few tips, tricks, and tools that could help simplify the process just a bit.
|
|
What you should know
Though crypto’s been around since the aughts, the practice of taxing crypto has only been around for a few years. This means that many people — including tax accountants — aren’t as familiar with the ins and outs of crypto taxation as they are with other areas of tax code.
Here are four tips from Cointracker that can help you gain a little clarity.
-
If you had losses from selling crypto, you should report those losses. Note that any capital losses over $3,000 can be carried forward and offset other gains in future tax years. By not marking these losses, you could be paying more than necessary in the following years.
-
Exchanging one crypto for another (including NFTs) is taxable. So are crypto rewards. Just because it’s not cryptocurrency, doesn’t mean that it’s not taxable. Same with rewards — just because you didn’t buy it yourself, doesn’t mean that it doesn’t count as income (or gains, depending on the situation). Don’t get penalized because you missed these pieces of the puzzle.
-
Depending on if you held your crypto for more or less than one year, you could be taxed differently. Gains made in less than a year are taxed at your ordinary rate. But long-term gains (made if you held a crypto for more than a year) receive a preferential tax rate. Watch the video above for more detail.
- If you only bought crypto, you can answer “no” on digital assets. This year’s IRS 1040 has a question about digital assets you will need to answer. If you sold, received as a reward or payment, or otherwise disposed of the digital asset, you’ll need to mark it “yes”. But if you only purchased the asset, held it without selling, or transferred it to your own wallet, you can mark this question “no”.
For additional questions around crypto and taxes at eToro, make sure to visit eToro’s Tax Help Center.
|
|
How can CoinTracker help?
CoinTracker is a crypto tax and portfolio management software that helps users track their crypto transactions and calculate their tax liabilities. The platform offers features such as automatic import of transactions from exchanges and wallets, automatic calculation of capital gains and losses, and the ability to generate tax reports.
Even if you filed taxes for your crypto last year, it’s likely that this year will not look the same. That’s why it’s so important to stay up-to-date on any changes and use tools like CoinTracker to make sure the process is as smooth as possible. We’ve partnered with CoinTracker to offer eToro users 10% off* of their tax preparation plans. Click on the link below to take advantage of this offer today.
|
|
|
|
|
If you’re still confused on what needs to be reported and how to fill out the crypto portion of your tax return, watch this crypto tax primer, featuring eToro analyst Bret Kenwell.
|
|
|
|
Taxes are important, and so are order routing disclosures. Please review the eToro broker-dealer’s order routing disclosures for stock, ETF, and option trading here as well as the firm’s quarterly Rule 606 reports. |
|
*Offer valid for new CoinTracker users only. eToro USA LLC and its partnering entities are not involved with the use of CoinTracker products and are not liable for any issues relating to use of the product. Questions or concerns about the use of CoinTracker or this promotion should be directed to CoinTracker.
Trading may have tax consequences. eToro does not offer tax advice. Please consult with a tax professional.
|
|
|
|
|
|
