Kyle Gibson
Apr 1, 2018 · 4 min read

I’ll make this quick because I know you don’t have too much time: the last day to file your crypto taxes is April 17th. For reminders, all cryptocurrency is treated as “property,” and so is subject to the same capital gains taxes as any similar investment, such as real estate.

If it’ll make you feel any better, I’ll tell you that you’re not going to owe any taxes for wallet-to-wallet transfers, or for any time you purchased cryptocurrency with fiat.

You’re really only on the hook for any sales you made, or, times you exchanged crypto for fiat. How long you held that crypto effects how much taxes you’ll owe, as well as what your individual income tax bracket is.

For more answers than I am qualified to give, you may be interested in this FAQ the IRS published in August of last year, covering questions like “Does virtual currency paid by an employer as remuneration for services constitute wages for employment tax purposes?” (Yes, it does).

But long-winded answers is not what you’re here for. You need direct calls-to-action letting you know how to file your crypto taxes, or else you could be facing a serious penalty:

“If you do not pay your taxes by the tax deadline, you normally will face a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes. That penalty applies for each month or part of a month after the due date and starts accruing the day after the tax-filing due date.”

Here’s the steps you can take now, since you’ve still got time, to file your cryptocurrency taxes at the last second:

Make sure you have the records for all your cryptocurrency holdings and transactions for the calendar year of 2017, in a format that can be submitted. If you made your transactions through an exchange like Coinbase, this can be done in just a few clicks by exporting a .csv with all your trades listed.

Make sure you understand what kind of taxes you owe. I recommend this Verge article, which does a great job describing the different kinds of taxes and appropriate forms. It includes this very helpful graphic:

The types of taxes that apply to various crypto transactions

Acquire and fill out the forms you require. Here are 4 services that claim to painlessly handle this step for you:

File before April 17th (which is a Tuesday). Then you’re golden!

If you are unclear about the forms you need, or how certain tax rules apply to your specific situation, it is highly recommended that you talk to someone professionally qualified to give such advice. Here is a directory of CPAs who have “knowledge or experience with handling cryptocurrency taxes,” if you feel that you need an expert’s opinion.

After you’ve got your crypto taxes for 2017 squared away, you might wanna relax with some tunes:

Token Report is an independent financial information service founded by Galen Moore and Peter Vessenes. Galen is a financial journalist with a background in startups, venture capital and launching news sites. Peter is a co-founder of the Bitcoin Foundation, and launched the first VC-backed Bitcoin company in 2011. He is managing director at New Alchemy, a boutique consulting and investment group based in Seattle, Wash., that is making a pre-seed investment in Token Report.​

Nothing contained in Token Report materials or posted at constitutes an offer or a solicitation of an offer to buy or sell a security, financial instrument, or other category of asset, or investment advice or recommendation of a security, financial instrument or other category of asset. Tokens involve risk and are not suitable assets for everyone. Token Report believes its information was obtained from reliable sources but does not guarantee its accuracy or completeness and accepts no liability for losses arising from the publishing of this information. The information provided by Token Report is not a substitute for financial, legal and other professional advice. Each individual should always consult his or her own financial, legal or other professional advisors and discuss the facts and circumstances that apply to the individual.

Token Report

We ​have ​built ​the ​world's ​largest ​database ​of ​verified ​information ​on ​ICOs ​and ​a ​network ​that ​is capable ​of ​covering ​every ​tokenization ​that ​emerges. Join the best-informed ​investors ​in ​the ​emerging ​cryptocurrency ​asset ​class.

Kyle Gibson

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Token Report

We ​have ​built ​the ​world's ​largest ​database ​of ​verified ​information ​on ​ICOs ​and ​a ​network ​that ​is capable ​of ​covering ​every ​tokenization ​that ​emerges. Join the best-informed ​investors ​in ​the ​emerging ​cryptocurrency ​asset ​class.

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