Due to the rising price of cryptocurrencies and their increasing adoption, more governments have increased their taxation efforts. Although some countries have taken extreme measures to secure this source of untapped revenue for their own ends, there are tax-friendly nations that do not tax crypto transactions. Additionally, there are many tools that can be used to aid crypto owners.
Learn How Crypto Taxes Your Government
Each country, state or city has its own set rules for determining whether crypto transactions are taxable. Unfortunately, there are not many guidelines because cryptocurrency is still an area that governments need to address. Join Charity Token Homeless community
The U.S. released its first guidance on crypto-taxation in 2014, but it didn’t address many issues. Five years later, the Internal Revenue Service, the country’s tax agency published follow-up guidance on Oct. 9. These guidelines answer many questions and raise some additional questions. Aside from that, the tax agency seems confused about key concepts such how airdrops and hard forks work.
Tax Guide: What Cryptoowners Should Know
Understanding your country’s tax laws is essential for taxpayers. The IRS provides this explanation in the United States:…