Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

Cryptocurrency Tax Guide For US Investors In 2022

by
June 12, 2022
in Politics News
0
Cryptocurrency Tax Guide For US Investors In 2022
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter

If you are an investor who traded in Cryptocurrency in 2021, then it’s only natural you had to file your tax return this year, sometime between January and April this year.

If you missed the deadline, then it’s obvious that you had to pay the issued penalties in case of all submissions that were made after the deadline.

Did you know that all non-fungible tokens and Cryptocurrencies are still being treated like ‘property’ for taxation purposes in the U.S.?

This is in accordance with the 2014 notice published by IRS (Internal Revenue Service), which mentioned that all digital assets would receive the ‘capital gains tax’ just like stocks.

Due to the appearance of the DeFi (decentralized finance) concept in 2021, the concept of taxation has become murky.

So let’s check out the Cryptocurrency tax guide for investors hoping to gain an immediate edge in the United States in 2022!

Cryptocurrency Tax Guide For US Investors In 2022: What’s Relevant?

Without wasting any more time, let’s dive straight into the complexities of the Cryptocurrency tax guide, relevant in 2022 so that you start your Crypto trading with the immediate edge really soom. . Don’t forget to keep scrolling for detailed information on the same.

Timing Is Of Essence:

First things first. The tax incurred from Capital Gains related to Cryptocurrencies includes,

Selling any Cryptocurrency like Bitcoin for fiat currency like the Japanese yen or the U.S. dollar.
Sending any Cryptocurrency like a gift of sorts, anything over 15,000 dollars, as per the regulations of the 2021 financial year.
Buying any goods or services with the help of Cryptocurrency, even something small like a coffee.
Swapping or trading digital assets, including purchasing non-fungible tokens utilizing Cryptocurrencies.

Moreover, timing is truly of the essence in the world of taxation. For instance, the dates for filing your taxes for the financial year of 2021 were between 24th January and 18th April. People who missed the tax filing deadline naturally had to face the wrath of penalties issued against them. So make sure you don’t miss any deadlines while filing for tax.

Paying Taxes: How Much Is Too Much?

If you want to gain an immediate edge over the competition, you need to find out at least how much tax you have to pay to the government for trading any Cryptocurrency.

You can easily calculate the tax amount you owe to the government in the United States by simply finding out how long you have held on to assets before selling them to another investor. Another factor on which your taxation amount depends is the tax bracket you belong to! This can easily be divided into different categories,

●      Short-Term Capital Gains:

The profits that you have earned from holding Crypto assets for little less than one year are usually taxed at a rate that’s directly related to your taxation bracket. In fact, you can choose to offset your income tax on any number of losses by a total amount of 300o dollars. Any loss that exceeds the above mentioned amount will naturally be carried forward.

Check the table mentioned below for a better understanding of how short-term capital gains functions.

Rate
Single Filers
Joint Filers (Applicable For Married Couples)
Household Heads
10%
Up to 9,950 USD
Up to 19,900 USD
Up to 19,900 USD
12%
(9,951 to 40,525) USD
(19,901 to 81,050) USD
(14,201 to 54,200) USD
22%
(40,526 to 86,375) USD
(81,051 to 172,750) USD
(54,201 to 86,350) USD
24%
(86,376 to 164,925) USD
(172,751 to 329,850) USD
(86,351 to 164, 900) USD
32%
(164,926 to 209,425) USD
(329,851 to 418,850) USD
(164, 901 to 209, 400) USD
35%
(209, 426 to 523,600) USD
(418,851 to 628,300) USD
(209,401 to 523,600) USD
37%
523,601 USD or more
628,301 USD to more
523,601 USD or more

●      Long-Term Capital Gains:

If you have been holding Crypto assets for over an entire year, the capital gains tax will be naturally relatively lower. In this case, the taxation amount will depend either upon an individual’s income or upon the combined income of a married couple. It could very well be o% or 10% or even 25%.

And It’s A Financial Wrap

It is important to note that you need to pay tax on capital gains that you end up making from such events and not the entire amount of assets that were disposed of. You can easily calculate this by finding the total difference between the actual amount paid for buying the asset and the price at which it was sold.

Don’t forget to let us know your thoughts on the same, in the comments below.


ShareTweetPin

Related Posts

Usain Bolt moves to trademark signature victory pose
Politics News

Usain Bolt moves to trademark signature victory pose

August 23, 2022
London to get new airport as Manston is cleared for take-off
Politics News

London to get new airport as Manston is cleared for take-off

August 23, 2022
Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience
Politics News

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

August 23, 2022
British Airways to cancel further flights up to the end of October
Politics News

British Airways to cancel further flights up to the end of October

August 23, 2022
Microsoft in trademark row with UK children’s reading firm Word Windows
Politics News

Microsoft in trademark row with UK children’s reading firm Word Windows

August 23, 2022
Crypto fraud revenues drop 65% following market meltdown
Politics News

Crypto fraud revenues drop 65% following market meltdown

August 23, 2022
Next Post
Do You Need an MMJ Card to Buy CBD Oil Online?

Do You Need an MMJ Card to Buy CBD Oil Online?

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

ACEN to build two wind farms costing around P17B

ACEN to build two wind farms costing around P17B

July 7, 2022
Ople assures preparations underway for simplified processes at new migrant workers agency 

Ople assures preparations underway for simplified processes at new migrant workers agency 

July 6, 2022
Digital risks may weigh on PHL banks’ credit ratings — Fitch

Digital risks may weigh on PHL banks’ credit ratings — Fitch

July 20, 2022
China loan application for three rail projects ‘deemed canceled’; PPP, funding from other countries eyed

China loan application for three rail projects ‘deemed canceled’; PPP, funding from other countries eyed

July 15, 2022
Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

August 23, 2022
Gilas Pilipinas opens its FIBA Asia Cup campaign as it faces tough Lebanon

Gilas Pilipinas opens its FIBA Asia Cup campaign as it faces tough Lebanon

July 11, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.