According to a Credit Karma report, US bitcoin investors who decided to exit the bitcoin market lost $ 1.7 billion. Unrealized losses, which belong to those who did not sell, represent $ 5.7 billion.
Credit Karma GM Jagjit Chawla believes that many Americans do not know they can benefit from a reduction in cryptocurrency due to their losses.
"Even if those who sold their own bitcoins at a loss can typically request a tax deduction, we found that before the survey, 61% of respondents who lost money with bitcoins did not realize they could get a tax deduction for losses of bitcoin ".
An American citizen who blocks his crypto losses could take up to $ 3000.
Any amount higher than this amount can be reported to the tax returns of the next few years, offsetting the potential tax on profits.
Selling Bitcoin "a taxable event"
Many bitcoin investors and traders do not know that selling bitcoins could be considered a taxable event. While most people are aware of the potential ramifications of underestimated income, what many do not know is that not reporting losses could result in the loss of valuable deductions.
With cryptor investors suffering losses throughout 2018 due to a price drop of up to 90%, this seems quite important.
TaxToken – Rationalization of the encryption fee
TaxToken is a BaaS startup that helps investors and traders keep track of their cryptocurrency.
By incorporating blockchain technology and artificial intelligence, TaxToken can automate the process of storing cryptographic taxes.
This means archiving the fast, easy and error-free encryption.
TaxToken's co-founder, Nathan Nichols, recognizes the problems that many people have had in dealing with cryptocurrency.
"TaxToken has been founded on a principle: it should not be difficult to file taxes related to cryptocurrency TaxToken is humiliated and enthusiastic about officially launching our cryptocurrency accounting software and playing our role in the development of the blockchain ecosystem."
Through automatic synchronization with users' exchanges and portfolios, TaxToken provides an easy-to-use system that imports ICO, business history, flights, mining and payments.
The information is then available on an easy-to-read dashboard that offers users a complete review of their transactions, available for download.
The Credit Karma report suggests that investors who are aware of being able to deduct losses are more likely to take the necessary steps to present their cryptocurrency, even if they have lost money.