Is it possible to claim standard deduction on cryptocurrency gains for MAGI purposes?

3 answers

• Feb 17, 2022 · 3 years ago
  Yes, it is possible to claim the standard deduction on cryptocurrency gains for MAGI purposes. Just like any other investment, if you meet the requirements for claiming the standard deduction, you can deduct your cryptocurrency gains from your taxable income. However, it is recommended to consult with a tax professional to ensure you meet all the necessary criteria and to get personalized advice for your specific situation.
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• Feb 17, 2022 · 3 years ago
  Unfortunately, you cannot claim the standard deduction on cryptocurrency gains for MAGI purposes. Cryptocurrency is treated as property by the IRS, and the standard deduction is only applicable to certain types of income. Therefore, you will need to report your cryptocurrency gains as taxable income and pay taxes accordingly. It is important to keep accurate records of your cryptocurrency transactions and consult with a tax professional for guidance on reporting your gains.
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• Feb 17, 2022 · 3 years ago
  As an expert in the field, I can confirm that it is indeed possible to claim the standard deduction on cryptocurrency gains for MAGI purposes. The IRS treats cryptocurrency as property, and if you meet the requirements for claiming the standard deduction, you can deduct your gains from your taxable income. However, it is crucial to keep detailed records of your transactions and consult with a tax professional to ensure compliance with all tax regulations.
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