How to calculate taxes on cryptocurrency earnings in California?
Emil CovasalaDec 16, 2021 · 3 years ago1 answers
I'm a California resident and I've been earning money through cryptocurrency trading. How do I calculate the taxes I owe on my cryptocurrency earnings in California?
1 answers
- Dec 16, 2021 · 3 years agoCalculating taxes on cryptocurrency earnings in California is an important aspect of being a responsible cryptocurrency trader. The California Franchise Tax Board considers cryptocurrency earnings as taxable income. To calculate the taxes owed, you'll need to keep track of your cryptocurrency transactions, including the date of acquisition, the date of sale, and the fair market value at the time of each transaction. You can then calculate your capital gains or losses by subtracting the cost basis from the fair market value. It's important to note that California has its own tax rates for capital gains, which may differ from federal tax rates. To ensure accurate calculations and compliance with tax laws, it's recommended to consult with a tax professional who specializes in cryptocurrency taxation.
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