The Currency Analytics
By Steven Anderson
The tax rules applicable to different cryptocurrencies differ by countries. Investors need to check with their local tax professional in order to assess their own tax…
Anyone who has incurred a taxable situation by being involved in the cryptocurrency market should report the cryptocurrency activity.
Cryptocurrency gifts are not taxable for the donor; however, the recipient will be inheriting the cost basis. If the gift exemption amount is reached, the gift tax applies.
Those who have been trading on foreign exchanges like Binance should report these holdings. Those who do not report will be considered to have been involved in tax fraud.
Those investors who had to sell their tokens to avoid further losses might in many cases have sold it for less than what they brought it for.
Tax obligations apply for tokens like Bitcoin that have made it to the main headlines and as well to smaller tokens like the TCAT tokens.
Non-compliance with taxation will put taxpayers to applicable civil and criminal penalties. Penalties will vary based on willful and non-wilful tax evasion.