Surely you have heard about Crypto.com, a major platform for cryptocurrency exchange and is a leader in new ways of earning and spending cryptocurrencies.
Due to the massive presence in the world of cryptocurrencies, many people wonder when Crypto.com sends tax forms, so today, we will clarify the doubts you may have about it.
What is Crypto.com, and why is it so important?
It is one of the most important platforms on the entire web in investment and cryptocurrency trading in general. It is a company that delves into crypto credit cards and decentralized finance or DeFi.
It was founded in 2016, and since then, it has expanded at a great speed, with the sole aim of providing access to anyone in the world of cryptocurrencies. However, this platform is not yet accessible to US traders. But the application works quite well.
Although the app does not have the same features as the exchange, it works just as well and allows you to do everything you need with the cryptocurrency exchange. This app reports users’ assets and trading history to comply with IRS requirements.
What forms does the Crypto.com application report?
The Crypto.com app provides the 1099-MISC form, which primarily deals with money earned as rent, prizes, or other various reasons. The IRS itself has a fairly detailed explanation about it.
You will receive that form as long as you have earned at least $600 in cryptocurrencies during that tax year. On the other hand, you can also access the 1099-B form, mainly for the money you have earned or lost from brokerages or related businesses.
However, Crypto.com can only report on assets and transactions conducted through its platform. Therefore, any transactions on another wallet, exchange, or DeFi platform, are not reported to the IRS.
How can taxes be paid from the app?
When filing taxes from this platform, you must consider that you must download all transactions that you have in the tax year period. It would help if you verified that all transactions match so that you can report all taxes.
Remember that Crypto.com will be in charge of sending all this information to the IRS, so you should not omit your transactions when paying your taxes. The IRS will already have all the information regarding the trades you have made, so you should calculate your taxes very well.
How to generate the tax report easily and for free?
It would help if you considered having the Crypto.com Tax Tool for greater convenience when calculating taxes. It will allow you to obtain the reports much faster and without the need for any external advice.
Thanks to this tool, it will be possible to import the data of each transaction made last year, and the taxes will be calculated accurately, generating a complete report. In this way, you can have a complete report at no cost.
In addition, this report includes the user’s transaction history and a complete record of capital gains and losses. It will be enough to follow some practical recommendations such as:
- You must register in the Crypto.com Tax application.
- You can upload transaction files in CSV format.
- You must review and confirm the data to see the calculation.
- Finally, you can generate the report, exported in formats compatible with IRS forms.
Thanks to this application, it will be easy to achieve great efficiency when simply calculating your cryptocurrency taxes. Thanks to this tool, you will avoid making any mistakes when filing your taxes, and you will always be able to achieve maximum energy efficiency.
Does Crypto.com report to the IRS?
For all users with more than $20,000 in transaction volume and more than 200 transactions per year, it will apply the 1099-K form. It should note that a copy of this form will also need to be filed with the IRS.
It is important to consider that, with the new American invoicing infrastructure, the exchange platforms will have to provide the information for the 1099 form reporting the information of all clients. This means that the platform will be responsible for reporting on all customers quite effectively. It is vital to keep in mind that you should always report cryptocurrencies to the IRS to avoid falling into possible fines when making your transactions.
How to calculate cryptocurrency gains and losses?
For any transaction you have made, you should take into account the following details:
- When the coins were purchased.
- How much do you pay for them in dollars?
- When you sold the coins.
- How much money do you receive for them?
You must have all this information at hand to calculate the profits and losses you had for the cryptocurrencies.
Also, you must keep in mind that if you exchange one cryptocurrency for another, this will constitute a taxable event.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.