How does Alex Kugelman recommend managing taxes for cryptocurrency investments?

3 answers

• Dec 16, 2021 · 3 years ago
  Alex Kugelman, a tax attorney specializing in cryptocurrency, recommends that investors keep detailed records of all cryptocurrency transactions. This includes information such as the date of the transaction, the amount of cryptocurrency involved, the value of the cryptocurrency at the time of the transaction, and any fees or commissions paid. By maintaining accurate records, investors can accurately calculate their gains or losses when it comes time to report their taxes. It is also important for investors to be aware of the tax regulations in their jurisdiction and to consult with a tax professional if they have any questions or concerns.
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• Dec 16, 2021 · 3 years ago
  Managing taxes for cryptocurrency investments can be a complex task, but Alex Kugelman suggests a few strategies to make the process easier. One recommendation is to use cryptocurrency tax software, which can help automate the calculation of gains and losses. These software programs can also generate tax reports and assist with tax filing. Another suggestion is to consider the use of tax-advantaged accounts, such as self-directed IRAs or 401(k)s, for investing in cryptocurrencies. These accounts can provide certain tax benefits, such as tax-deferred growth or tax-free withdrawals, depending on the account type and the investor's circumstances.
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• Dec 16, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, Alex Kugelman advises investors to be proactive in managing their taxes. This includes regularly reviewing and updating their tax strategies to ensure compliance with changing tax regulations. It is also important for investors to keep up-to-date with any guidance or rulings from tax authorities regarding cryptocurrencies. By staying informed and taking proactive measures, investors can minimize their tax liabilities and avoid any potential penalties or audits.
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