A number of cryptocurrency traders in the U.S. are facing a tax trap.
They had massive capital gains in 2017 and have not yet paid the IRS or the state their 2017 taxes owed. However, in the first quarter of this year, their cryptocurrency portfolios significantly declined in value, and they incurred substantial trading losses.
Now, they need to sell cryptocurrencies to raise cash to pay their 2017 tax liabilities due by April 17.
That would leave many of them with little cryptocurrency to continue trading. Of course, they may choose to file their automatic extensions without tax payment or a small payment and incur a late-payment penalty of 0.5 percent per month by the extension due date of Oct. 15. (Make sure to file your return or extension by April 17. If you miss the deadline, the IRS charges a late-filing penalty of 5 percent of the amount due for each month or part of a month your return is late. The maximum penalty is 25 percent.)
https://www.coindesk.com/active-crypto-traders-can-save-us-taxes/
Topic: [2018-04-03] How Active Crypto Traders Can Save on US Taxes (Read 131 times)
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