Justin Roberti

In a recent Benzinga article that I posted regarding Bitcoin and Taxes, experts stated that there are 18 to 21 million new retail crypto investors who are going to have to deal with declaring crypto gains.

  1. No uniformity in third-party reporting — When trading equities on Robinhood, or through an eTrade account, at the end of the year, an individual receives a 1099-B from the broker/dealer of choice. This same 1099-B is sent to the IRS, which they use to ensure individuals are reporting their income accurately.
  1. Pick a crypto tax solution designed for retail investors to help in this process. There are several out there that allow investors to aggregate their trading activity across several crypto exchanges all in one place. This will make your life infinitely easier.
  2. Pay your taxes. No one enjoys doing it, but chances are it will save you time, money, and anxiety in the long run.

Anything you’d like to add?

Digital assets and blockchain technology provide pragmatic solutions to an inefficient, legacy system that has left many behind. The advantageous nature of this new technology will be felt on Wall Street and Main Street alike. There will be growing pains, several I’m sure, but in the end, it will all be worth it to build a more inclusive and efficient financial system.

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Declare your Bitcoin Today — Practical Advice on Crypto Taxes | by Justin Roberti | The Capital | Feb, 2021

by Benjamin Hartman
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