Crypto taxes are changing in 2022! Fortunately, we know the changes and are here to help you navigate them.
From new crypto tax reporting requirements to understanding how to do taxes for new trends in crypto, discover some of the top changes in the crypto tax world.
Crypto taxes in 2022: Here’s the top changes
Discover the top changes you need to know about crypto taxes in 2022:
1. Getting taxes done easily for newer crypto trends
Metaverse, NFTs, and DAOs are big trends for 2022, with a lot of crypto enthusiasts wondering about new taxable events.
For example, if you gain staking rewards from a rebasing DAO protocol, you have to recognize their Fair Market Value (in USD) as ordinary income in the US. Beyond DAOs, Metaverse and NFTs pose more reporting challenges to the crypto community.
CoinTracking can help you import your trades/income from all these trends across blockchains. Check out our ETH, AVAX, BSC, and Fantom addresses importers to import trades from major NFT marketplaces, DAOs, and virtual ecosystems.
2. New reporting for crypto traders
New regulations are increasing reporting requirements for crypto traders and businesses.
For example, people who receive more than $10,000 in cash and equivalents as cryptocurrencies will have to file a report with the IRS, under Section 60501.
3. Fan tokens gain predominance
Sports and crypto are mingling more and more, with new partnerships between sports clubs and crypto brokers. Fan tokens bring higher engagement but also a trading opportunity.
Trading fan tokens is a taxable event, subject to capital gains taxes in the US. Learn more about how those trades and personal tokens are taxed in the US.
4. Traders move to crypto-friendly countries
The increased need for crypto tax regulations is leading people to search for crypto-friendly countries concerning crypto taxes.
Many countries like Portugal, Dubai, Singapore, Switzerland (e.g., Lugano, Zug), El Salvador, and Puerto Rico offer tax advantages. Additionally, US states like Miami and Colorado are embracing crypto, with even some making crypto legal tender.
Discover a complete version of this article with more changes coming to the crypto world on Bitcoin.com.
The best crypto tax calculator: CoinTracking
The best crypto tax software to import and track your crypto trades is CoinTracking.
You can import your trades using CSV or API, track your gains/losses, and generate tax reports according to your preferred accounting method.
CoinTracking is your full crypto tax solution for:
DeFi and NFT support with our ETH+DEX importer.
Importing your Binance Chain, Binance Smart Chain, and MATIC transactions.
25+ advanced reports, including which coins offer you a tax-free rate.
Automatic capital Gains, according to 12 accounting methods (e.g., FIFO, LIFO, HMRC, ACB), accepted worldwide.
Generating complete Tax Reports in your country.
Moreover, CoinTracking can easily classify all your earnings from yield farming, liquidity pools, crypto staking, and much more.
Crypto taxes with no errors: CoinTracking Full Service in the US.
CoinTracking also offers a Full Service for US traders. A crypto reconciliation tax expert from Polygon Advisory Group, a leading US crypto tax firm, will review your CoinTracking account, help fix any errors, and ensure you submit your crypto tax reports error-free.
Do you have any crypto tax questions? Check the best guides:
Do you pay taxes on crypto margin trading?
How are rebase token protocols taxed?
Do you pay taxes on fan tokens?
What happens if you don't file your crypto taxes?
Do you pay taxes when trading stablecoins?
How is Yield Farming Taxed?
DeFi Taxes: The Complete Guide.
How to save taxes with a Bitcoin IRA.
Do you pay taxes for receiving Bitcoin tips?
Uniswap Taxes Guide
How to calculate taxes with Bitcoin dollar-cost averaging?
FIFO for crypto taxes? Implications of accounting methods.
NFT Taxes: The Complete Guide.
Is Bitcoin taxable? The ultimate guide for 2021 taxes.
How to reduce your crypto taxes?
Crypto tax loss harvesting: Here’s what you need to know
This post is part of the Crypto Taxes AMA series. Follow our weekly AMAs on Twitter where our expert CPA, Sharon Yip answers your crypto tax questions. You can download 30+ AMA crypto tax reports for free.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.