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Roundup of Cryptocurrency Tax Updates

Welcome to the February edition of our monthly cryptocurrency tax news roundup! This month, the focus is on filing your 2023 taxes and strategizing for 2024, with insights from industry experts and even some concerns from the International Monetary Fund (IMF). Stay Ahead of the Curve: Budget 2024: Crypto industry’s wait for lower tax rates […]

By hunain
26 Feb, 2024

Welcome to the February edition of our monthly cryptocurrency tax news roundup! This month, the focus is on filing your 2023 taxes and strategizing for 2024, with insights from industry experts and even some concerns from the International Monetary Fund (IMF).

Stay Ahead of the Curve:

Budget 2024: Crypto industry’s wait for lower tax rates continues

  • The crypto industry was hoping for tax cuts in the recent budget but they were not announced.
  • Industry representatives are hopeful that the tax cuts will be announced in the full budget.
  • The industry is asking for a reduction in the TDS rate to 0.01% and permitting offsetting of losses.
  • Industry is optimistic about the ₹1 lakh crore corpus announced for innovation in sunrise sectors.
    continue reading on livemint

Bitcoin Taxes in 2024: Key Points

  • Bitcoin is taxed if you sell it for a profit, use it for services, or earn it as income.
  • Taxes are reported in USD, requiring conversion when buying, selling, mining, earning, or using Bitcoin.
  • Taxation depends on how you acquired Bitcoin:
    • Mined or received as payment: Taxed immediately like regular income.
    • Sold, traded, or used: Taxed on the difference between purchase price and fair market value at the time of use/sale (capital gains tax).
  • Capital gains tax rates depend on two factors:
    • Holding period: Short-term (under 1 year) = 10-37% tax rate, Long-term (over 1 year) = 0-20% tax rate.
    • Total income for the year: Higher income = higher tax rate.
  • Keep good records: Track purchase price, fair market value when used/sold, and any received forms (like 1099-K).
  • Bitcoin losses can be written off (up to $3,000 per year) to reduce tax liability.
  • Failing to report Bitcoin income can result in penalties and interest.
  • Consider using crypto tax software if you have many transactions.
    read the full blog on nerdwallet

6 Things Tax Professionals Need to Know About Cryptocurrency Taxes

Tax professionals are increasingly recognizing the importance of understanding cryptocurrency taxation due to its growing prevalence in investment portfolios. Thomson Reuters highlights six crucial aspects that tax professionals should be aware of:

  • Crypto is treated as property for tax purposes, similar to stocks or real estate.
  • Taxable events include selling, trading, spending, or earning crypto.
  • Understand DeFi and ICO tax implications, which can be complex.
  • Stay updated on the evolving regulatory landscape for crypto.
  • Engage with crypto communities to learn about trends and challenges.
  • Consider using crypto tax software to streamline accounting and reporting.


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