Year-End Tax Tips And Strategies For Cryptocurrency Investors

With just six weeks left in the year, now is the time for cryptocurrency investors to take action on year end tax planning. Spending a little time now can result in big savings when filing your tax return in April.

First, Run The Numbers

Sitting down to add up your income and expenses for 2018 is nobody’s idea of a good time, especially during the holiday season. Unfortunately, it’s a mandatory exercise for serious cryptocurrency investors. Running the numbers now is the only way to figure out where you stand and what tactics you need to deploy before year end to minimize your potential tax liability.

The first step is to gather up information about your 2018 income and expenses. You’ll need to know your income year to date, as well as your anticipated income for the remainder of the year. This means you’ll need to calculate your crypto capital gains, as well as income from mining or staking. Software tools like bitcoin.tax can help with this step.

Next, identify the…