Voyager cannot provide tax advice, and the company's reorganization raises certain tax complexities. While we cannot be entirely sure, we believe that (a) the company's Chapter 11 Bankruptcy filing should not affect your tax obligations, and (b) because your crypto claim has not yet been adjudicated, it is our understanding that you likely cannot use the company's bankruptcy to claim a loss concerning any cryptocurrency you deposited on the Voyager platform. You are highly encouraged to obtain independent tax advice.
Cryptocurrency Taxes
Voyager Crypto Taxes is a mobile-based crypto broker that offers crypto interest accounts and zero-fee trading. Voyager was established in 2018 by Steve Ehrlich, previous CEO of E*Trade, and Oscar Salazar, co-founder of Uber.
In July 2022, Voyager filed for Chapter 11 bankruptcy due to market volatility and liquidity issues. Previously, the exchange had paused withdrawals for all customers.
Reporting Your Voyager Transactions
Now that you understand cryptocurrency taxes better let's take a closer look at how to report your Voyager transactions. Voyager provides users with a 1099-K form, which reports their gross proceeds from cryptocurrency transactions. Be that because it may, it is essential to note that this outline needs to consider any mishaps you'll have brought approximately. Subsequently, keeping track of all your exchanges, counting buys, deals, and exchanges, to precisely calculate your picks and misfortunes is critical.
You should utilize several diverse shapes when announcing your Voyager transactions on your tax return. If you only bought and held cryptocurrency, you will likely only need to report it on Schedule D of your tax return. If you sell or exchange cryptocurrency, you will, too, need to fill out Form 8949. Additionally, if you have any cryptocurrency as a wage or mining reward, you may have to report it as a salary on your charge return.
Common Questions About Crypto Taxes
You may have some common questions as you navigate Voyager crypto taxes and cryptocurrency taxes in general. Here are a few answers to as often possible questions about crypto charges:
Do I have to pay cryptocurrency charges if I have yet to sell it?
Yes, you may have to charge on any pickup you've received; if you have yet to sell your cryptocurrency, however, known as an unrealized pickup, it is still subject to tax assessment.
How do I calculate my gains and losses on cryptocurrency trades?
To calculate your picks and misfortunes on cryptocurrency exchanges, take the fetched premise of the cryptocurrency you sold or exchanged, as well as any expenses related to the exchange picks up or misfortunes that will, at that point, be the distinction between the deal cost and the fetched premise, short any expenses.
What if I made a mistake on my cryptocurrency taxes?
If you made a botch on your cryptocurrency charges, you can record a corrected return utilizing Shape 1040-X. It is imperative to redress any blunders as long as conceivable to dodge punishments and intrigue them.
Can I use a cryptocurrency loss to offset other gains?
Yes, you can use a cryptocurrency loss to offset other gains on your tax return. Also, if your misfortunes surpass your picks up, you can deduct up to $3,000 per year, with any extra misfortunes carried forward to the future for a long time.
Common Questions About Crypto Taxes
What if I still need to receive a 1099-K from Voyager?
If you have yet to receive a 1099-K from Voyager, you can still report your transactions on your tax return using your records. It is critical to keep exact records of all your exchanges, counting the date of the exchange, the sum of cryptocurrency included, the fetched premise, and any expenses related to the exchange.
Can I use a cryptocurrency wallet to track my transactions?
A cryptocurrency wallet can be a valuable way to track your exchanges and calculate your pickups and misfortunes. Many wallets have built-in tools for monitoring your transactions and generating tax reports.
Should I pay charges on the off chance that I, as it were, utilize cryptocurrency to buy products or administrations?
Yes, using cryptocurrency to purchase goods or services is still subject to taxation. The esteem of the cryptocurrency at the time of the exchange is considered wage and must be detailed in your assessed return.
What if I have international cryptocurrency transactions?
International cryptocurrency transactions can be even more complex when it comes to taxes. You must report your exchanges to the outside country's assessment specialists and the IRS. Furthermore, diverse assessment rules and detailing necessities for each nation may be included in the exchange.
Conclusion
Navigating cryptocurrency taxes can be daunting, but staying compliant with IRS regulations is essential to avoid penalties and interest. Regarding Voyager crypto taxes, keeping accurate records of all your transactions and using the appropriate tax forms when reporting your gains and losses is necessary. By understanding the basics of cryptocurrency taxes and keeping detailed records, you can confidently navigate the complex world of crypto taxes.
FAQs
1: Do I need to report every transaction on my tax return?
You may have to report each cryptocurrency exchange you make on your assess return, counting buys, deals, and exchanges.
2: Can I deduct fees associated with my cryptocurrency transactions?
Yes, you can deduct fees associated with your cryptocurrency transactions from your gains, which can help reduce your tax liability.
3: What if I lose access to my cryptocurrency wallet?
It is critical to keep a reinforcement of your wallet's private key in a secure put in case you lose it to your wallet. Additionally, you should keep records of all your transactions to help recover your cryptocurrency if necessary.
4: Are there any charge benefits to contributing in cryptocurrency?
Cryptocurrency investments have no unique tax benefits, but you can use losses to offset other gains on your tax return.
5: Can I file my cryptocurrency taxes electronically?
You can file your cryptocurrency taxes electronically using tax software or a tax professional.
