Over the last year, many Americans have diversified their investments and made significant income on assets like cryptocurrencies and NFTs. These asset classes are relatively new for a majority of Americans, so the experts at Jackson Hewitt have compiled a list of items filers should know ahead of Tax Day 2022.
I bought some NFTs and crypto in the last year. What should I know about paying taxes on them?
- Gains can be taxable
- Even if you don't cash out, you still may owe taxes on your transactions.
- Gains and losses can be tricky. Netting them can be tricky too.
- Using basis amounts to calculate your gains and losses can also be complicated.
- Forks, awards, dividends, and other income from owning crypto can be taxable.
Note: the IRS is watching this area closely, and there is a question on the front of the tax return to make sure you meet the criteria.
This tax advice is brought to you by our partner Jackson Hewitt.
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