The post Crypto Tax 101: Everything You Need To Know appeared on BitcoinEthereumNews.com.

If you’re a crypto user, there are a few things that you’ll need to stay on top of for your own good. You should know how best to store your tokens to avoid losing them. You should know the best sites to trade tokens on. You should know how each token you invest in operates. And, of course, you should know about crypto taxation. Crypto tax is a very delicate issue as up until a few years ago, it was largely ignored by governments around the world. Now, it is a major issue and one you should educate yourself on to avoid falling on the wrong side of the law. Here are a few things to keep in mind. The State of Crypto Taxation Laws Two of the most important things to know about crypto tax are that it differs from one country to the next and that it is based on the legal classification of crypto assets. One of the longest-running conflicts between the crypto and mainstream financial worlds is whether or not crypto is an asset or a currency. If crypto is seen by the government as an asset or a security, as some suggest, it will be taxed as such.  For example, the UK classifies crypto as capital assets and taxes it at a 20% rate. Italy, on the other hand, classes crypto as foreign currency and taxes it at zero if the income gained is below €2,000 and 26% for income above that amount. The amount of tax you will need to pay on your crypto assets ultimately depends on where you live and how your government recognises them. It is also important to note that crypto tax laws are always changing. Some countries have changed their legal classification of crypto or their tax rates and…

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Filed under: News - @ September 24, 2024 3:25 am