You can access account information through the platform to calculate any applicable capital gains or losses and the resulting taxes you must pay on your tax return. The IRS is stepping up enforcement of cryptocurrency tax reporting as these virtual currencies grow in popularity. As a result, you need to keep track of your crypto activity and report this information to the IRS on the appropriate crypto tax forms. A hard fork doesn’t always result in new cryptocurrency issued to the taxpayer, and doesn’t necessarily generate a taxable event as a result. However, in the event a hard fork occurs and is followed by an airdrop where you https://becketttizi250.weebly.com/blog/13-predictions-for-crypto-in-2022 receive new virtual currency, this generates ordinary income. If, like most taxpayers, you think of cryptocurrency as a cash alternative and you aren't keeping track of capital gains and losses for each of these transactions, it can be tough to unravel at year-end.
