The world of crypto assets and cryptocurrencies continue to rise, and with this comes many more questions. Especially for young, tech adopters who might not know a lot about taxes, but do have experience and understanding of the world of cryptocurrencies. With countless variations of the digital currency on the market, it can be a lot to keep up with on its own, and especially when you throw the government into it.
In a report from the Blind app, which gives employees an anonymous platform to talk about their work experience and employers, the app reached out to their user base to find out how many of them invested in cryptocurrencies and how many of them actually took the time and effort to report those earnings to the IRS. 2,600 responded that they had earned money from crypto, but surprisingly only 46% of those users will, or plan to, report those gains.
There have been plenty of discussions on who has to file, and who doesn’t, but the general rule of thumb is if you participated in cryptocurrency transactions, you’re probably supposed to be reporting it. Even if you used crypto for buying stuff, it is still considered a capital gain and must be reported.
In a survey reported on Reuters, Credit Karma shows that only 1 in 250 of those surveyed are reporting capital gains or losses on their taxes for crypto investments. None of this is new, however, but the largest amounts of new cryptocurrency enthusiasts have grown substantially in the past two years. In fact, it was in 2014 that the IRS first started issues guidance for crypto assets.
Did you earn any crypto assets in 2017? Do you feel that users should have to report on those gains or losses, regardless of the amount?