Cryptocurrencies are once again popular and on Biden’s IRS lookout for revenue funds.
You must check a box for the crypto question, even if you didn’t have any cryptocurrency transactions in 2021.
The new tax question also applies to non-fungible tokens or NFTs, CNBC reported. The NFTs could also come with a hefty tax bill — a 31.8% tax rate on any profets.
Bitcoins and the like are taxed at a 23.8% top rate, CNBC reported.
Cryptocurrency is treated as property, CNET reported. But there is a catch. If you used real money to buy crypto, you may not have to report the purchase, but if you bought cryptocurrency with other cryptocurrencies then you have to report it, according to CNET.
If you have to pay tax on crypto, then you will need to fill out another form — Form 8949 and Schedule D of Form 1040, Market Watch reported.
For more on the tax implications of cryptocurrency, visit the IRS’s website.
Read more at:
http://timesofindia.indiatimes.com/articleshow/88892520.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
source https://duchonsigns.wordpress.com/2022/01/20/crypto-questions-irs-will-be-asking-about-cryptocurrency-transactions-on-2021-returns/
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