Bitcoin (CRYPTO: BTC) made a stunning comeback towards the end of 2020, leaving many investors with triple-digit percentage gains that could impact their tax returns if they sold and took a profit. While receiving income is a slam dunk for investors, it also creates a tax liability in most cases.
So if you have bought or sold cryptocurrency and have no idea of your reporting responsibilities, take note of these three things to get you started in the right direction.
1. The sale of Bitcoin is a taxable event
For those who wanted to learn more on cryptocurrency, Bitcoin provided a unique opportunity to “earn …
Read Additional From Source
Copyright @ www.fool.com
- Headline: Sold Bitcoin? 3 things to know before filing taxes
- Check all news and articles from the Cryptocurrencies news information updates.