As the April 18 United States tax deadline approaches, investors are scrambling to report their gains and losses from the previous year. For those who experienced losses in the market over 2022, this is the last chance to report the loss and “try and get some of that benefit” by offsetting it against any gains made in the previous year.
In an interview with Cointelegraph, tax expert Neil Talwar emphasized the importance of reporting losses to the IRS. He explained that investors who do not report their losses may miss out on the opportunity to offset them against future gains, resulting in higher tax bills.
Talwar also advised investors to keep accurate records of their transactions, including the date and price of each purchase and sale. This information is necessary for calculating gains and losses and will be required when filing taxes.
While the tax deadline may seem daunting, Talwar reassured investors that there is still time to file. He recommended that investors seek the advice of a tax professional if they are unsure about how to report their gains and losses.
In addition to reporting losses, Talwar also discussed the tax implications of cryptocurrency mining. He explained that miners must report any income they receive from mining activities, and that the value of the mined cryptocurrency at the time it is received is considered taxable income.
Talwar advised miners to keep track of their mining income and expenses, as well as the value of the cryptocurrency at the time it is received. This information will be necessary for calculating taxes owed on mining income.
Overall, Talwar’s advice to investors and miners is to stay informed and keep accurate records. By doing so, they can minimize their tax bills and avoid any potential penalties from the IRS.
As the cryptocurrency market continues to grow, it is important for investors and miners to understand the tax implications of their activities. With the help of a tax professional and careful record-keeping, they can navigate the complex world of cryptocurrency taxes and ensure compliance with IRS regulations.
