How is a cryptocurrency taxed? - PowerPoint PPT Presentation

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How is a cryptocurrency taxed?


Do you own cryptocurrency, trade or Buy/sell? If you respond yes, you need to grasp the financial regulations around taxation of cryptocurrency and how unnecessary legal challenges can be avoided. In this article, we discussed the taxation of cryptocurrency and more. – PowerPoint PPT presentation

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Updated: 11 October 2021
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Provided by: john777francis


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Title: How is a cryptocurrency taxed?

How is a cryptocurrency taxed?
  • Do you own cryptocurrency, trade or Buy/sell? If
    you respond yes
  • you need to grasp the financial regulations
    around taxation of cryptocurrency and how
    unnecessary legal challenges can be avoided
  • In this article, we discussed the taxation
    of cryptocurrency and more
  • Is it taxed or not?
  • Is crypto has taxed or not, the answer is YES
  • You are responsible to pay taxes (Cryptocurrency
    taxes )by using or owning(cryptocurrency to
    invest in) any Crypto currency
  • The currency crypto rules and regulations are
    still under progress, as they are a relatively
    new addition to the financial industry.
  • This is why many countries still have confusing
    tax regulations on whether and if so, how much
    you have to pay taxes.

  • Cryptocurrencies were listed as virtual assets in
    2014 in countries like the US
  • the Internal Revenue Service (IRS).
  • This means that you must reveal your encryption
    portfolio in your tax submissions if you live in
  • Instead of a currency, many European countries
    also consider crypto tokens as an asset.
  • This means that the individual in question must
    pay taxes(tax on cryptocurrency) according to the
    legislation on the capital assets in any virtual

  • So when should you pay tax on your own crypto
  • Usually, you are obligated to pay taxes (income
    tax on cryptocurrency) when you sell
    cryptocurrencies for a profit
  • Let us design the taxable crypto-currency events
  • You will have to pay taxes (crypto tax) when you
    buy cryptocurrencies and subsequently sell them
    to fiat money
  • You will be required to include the income in
    your income tax return if you sell 100 worth of
    BTC or any other currencyIf you are paid
  • the income tax is the equivalent amount that you
    are paid
  • If you are an employee, an employer, a freelancer
    or any service provider that you pay

  • then the income tax legislation makes you liable
    to pay the fees(crypto tax)
  • The direct purchase from the market of any
    commodity (if applicable in countries) is a
    taxable event
  • Some places accept cryptocurrencies such as BTC
    and ETH in nations like the US and the United
  • Such events may also be taxable, even if the
    rules are not clear at this stage
  • Cryptocurrency trading, e.g. BTC for ETH, is
    another noteworthy instance that applies to tax
  • You must bear in mind that only if you earn from
    it you have to pay taxes. Say that for 5,000 in
    2018 you bought one BTC and in 2021
  • you sold it for 50,000. Then you must pay the
    tax. But you don't have to pay anything if you
    buy the same BTC for 5K and sell the same one
    for 2K

  • Only the profit amount is subject to tax
  • The guidelines on how this process works in most
    nations are not clear, thus a professional fiscal
    adviser is advisable to contact
  • Also check our blog on Blockchain technology to
    know more
  • How much  tax on cryptocurrency to pay?
  • The investment is taxed on its capital gains in
    fundamental financial terms
  • You sell your crypto assets for profit as a
    capital gain
  • If you sell the BTC at 50K following the
    purchase at 5K
  • you have a net profit of 45K for the prior
    scenario This is the amount you have of capital

  • Now, depending on your investment term, there are
    two types of taxes
  • You pay taxes according to short-term
    capital-gain regulations if you own crypto for 1
    year (3 years in other countries
  • For investments lasting more than one year, taxes
    on long-term gains are lower
  • Now that you have a clear concept of how taxes
    (cryptocurrency taxes) work for cryptography
  • Conclusion
  • In most nations, the regulations of currency
    crypto have been imprecise and unclear

  • That is why you should always be proactive in
    filing your taxes rather than doing it and
    getting into difficulty
  • If tax papers are not submitted, sanctions, tax
    evasion and even imprisonment may result
  • The best suggestion is to see a tax consultant if
    you receive considerable revenue from the crypto
  • Make sure that you are fully aware of the newest
    advancements in virtual and decentralised
  • For cryptocurrency to invest in deals visit
    at- Telegram
  • For additional (further) information about next
    big cryptocurrency
  • visit at Instagram and Facebook
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