I know I wrote a similar article about the tax but people are still not believing the fact
IF YOU TRADE COINS, YOU HAVE TO PAY TAX
Yes, trading coins is a taxable event in the US!
I read the IRS’s official announcement and similar articles multiple times and I talked to 2 professionals about this and they both confirmed you have to pay tax for it.
You buy Bitcoins and you buy alt coins with it.
If the value of Bitcoin is higher than when you originally purchased, you have to pay tax for it!
If you sell the alt coins and get Bitcoins, if the alt coins’ value is higher than when you purchased, you have to pay tax for it!
In Binance, you can check your coin transactions in this page.
You have to report all the gain in these transactions.
I had about 500 transactions last year.
It was not really possible to track them all and calculate what “gain” I had.
You have to know the price of Bitcoin and other coins at the moment of each transactions.
CoinTracking, the savior
I talked about CoinTracking in a different article but it is really the only company doing the great job helping you to track your coins and file a tax report.
You can directly import your coin transactions from Binance and many different exchanges.
CoinTracking is really useful
This tool let you figure out your gains easily.
There is a tax dedicated section!
CoinTracking is free
Up to 200 transactions, it’s free!
I seriously recommend it.
At least look at what CoinTracking can do!
There is a demo page.
It works great with Binance.
Let professional handle your crypto tax
That’s my conclusion.
It’s really difficult to file tax for Crypto Currency when you have many transactions from different exchanges.
Even if you don’t want to use CoinTracking, you should really hire someone or talk to professional.
Don’t think IRS can’t find you.
They are ready to track you down.
That’s an advice from me.
Good luck!