Home
News
- With Tax Day just around a month away, a top-notch tax reporting platform, launched this year’s “State of Crypto Tax Reporting” survey.
- Report focused on better understanding persisting issues including digital asset taxes in United States.
- Survey questioned investors, among other stuff, whether they report as well as pay taxes on cryptocurrency or not, at present.
Complex Crypto Tax
As per the tax reporting platform’s this year’s State of Cryptocurrency Tax Survey, US cryptocurrency investors appeared to have in a lot of confusion when talked regarding reporting taxes.
Over 1,000 US investors more than the age of 18 years, who possesses or makes investments in crypto assets, sent a transparent message that they wish to pay taxes, but were not aware that cryptocurrency was taxable, or did not know how to report digital assets on their tax returns.
Contrary to well-liked belief, that cryptocurrency investors are eyeing to avert taxes, most of the individuals reported paying taxes on digital assets. In contrast, only a handful of respondents asserted to avert paying taxes intentionally, giving reasons that, authorities are not aware of their crypto assets or they do not wish to pay taxes.
Survey respondents also said that, they don’t possess proper tools that can assist them to pay taxes regarding crypto, and many said that they were not able to trace their capital gains or losses.
Age was also a factor, while not broadly discussed in report. As reported in former studies, digital asset is most well liked with a younger demographic, rendering them relatively new, to investing, and is not that savvy regarding tax reporting accountability.
Kemmerer, Co-Founder and CEO of tax reporting platform CoinLedger, said that, Several factors are constantly influencing investors’ ability to trace and report taxes on their virtual assets precisely.
He further added that, While confusion is not a proper reason, for tax aversion, it has transformed into reality for virtual asset investors.
Latest tax laws coming into effect coupled with escalating number of US states as well as global charities seeking to or already adopting virtual asset payments only makes the requirement for easy, user-friendly cryptocurrency tax as well as accounting software, particularly for DeFi users, more vital.
Unconfident Americans
While it is not new for US citizens to lack confidence in their chosen officials, the survey revealed that over 2/3rd of cryptocurrency investors don’t have faith that regulations as well as politicians drafting digital asset laws understands sector as whole.
CoinLedger, co-founder and CEO, said that, There is a constant requirement for regulators to enforce effective and fair cryptocurrency tax policy, not just in United States, but all over this globe.
This survey unveiled a number of cryptocurrency investors who are genuinely reporting on their taxes, has escalated back since 2018. Still, sector is far from home to go from a legislative vantage point, particularly when it comes to contracting a gap among law-abiding virtual asset investors and those averting them because of scarce understanding, confusion or otherwise.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
