US Citizens Must Fulfill Crypto Tax Obligations
United States citizens who hold cryptocurrency need to be aware of their tax reporting obligations to avoid serious consequences. According to Jerry Brito, the executive director of Coin Center, if you have more than $10,000 USD equivalent in crypto, you must fulfill your tax reporting obligations. Failure to do so within 15 days could result in a felony charge. This requirement is outlined in Public Law 117-58, effective from December 31, 2023.
Ongoing Crypto Tax Measures Target US Citizens in Latest Taxation Developments
In addition to individual crypto tax obligations, new rules introduced by the Financial Accounting Standards Board (FASB) now require companies to measure their crypto assets at fair value. This measurement technique aims to provide a more accurate reflection of the value of digital currencies like Bitcoin and Ethereum. The rules will come into effect in 2025 but allow for earlier adoption.
A report by Divly revealed that in 2022, almost no crypto investors declared their cryptocurrency trading or investing activities to tax authorities. Only 0.53% of cryptocurrency investors worldwide reported their crypto activity.
Hot Take: The Importance of Fulfilling Crypto Tax Obligations
It is crucial for US citizens holding cryptocurrency to understand and fulfill their tax reporting obligations. Failure to do so can result in serious consequences, including felony charges. With new tax measures targeting both individuals and companies, it is essential to stay informed and comply with the regulations. By accurately reporting your crypto activities, you can ensure compliance with the law and avoid legal troubles. Stay up-to-date with the latest developments in crypto taxation and seek professional advice if needed to navigate this complex landscape.
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