Taxtris is a premier European tax automation company that creates cutting-edge API technologies to empower projects operating in the web3 space. The company’s experts imparted valuable advice to their visitors, customers, and readers regarding the recent setbacks in the crypto market.
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The size of the current crypto market is currently valued at approximately $1.7 billion. However, exchanges are collapsing, projects are being shut down, and the rapid fluctuations have put investors and crypto collectors on the edge of their seats.
The speed at which some of the most popular cryptocurrencies are dropping is making potential investors think twice about even entering the space while many professionals that have spent years in this industry are looking for a way out.
Taxtris, one of the leading European tax automation companies has taken a deep dive into the current landscape of crypto and its future. The company’s experts have pulled mountains of relevant data and are on a mission to help newcomers and crypto enthusiasts make educated decisions regarding the management of tax losses in the aftermath of plunging crypto prices.
The first point made by Taxtris’ experts revolves around financial responsibility. Updated crypto accounting and recording are paramount to understanding the difference between financial and tax losses. Regarding this, Taxtris experts have imparted the following:
“With traders suffering substantial losses, some are holding onto their crypto while others are liquidating their positions, and some are seeking shelter in stablecoins. Traders are often unaware that their financial loss is not always equal to their tax loss, so resolving that can be a miserable task if done by yourself or very expensive if done by your accountant. Fortunately, there are affordable tools that can help users account for and report their losses.”
Using tagged transactions to categorize and label relevant transactions can greatly help traders build more structure into their accounting. According to the company’s experts, selecting an optimal tax strategy can be difficult without properly labeling asset transfers with corresponding tags.
There are many ways to reduce the amount of tax traders need to pay on their crypto assets and holdings. Taxtris’ experts stated that claiming crypto losses is one of the best ways to do so, although this approach is tightly related to the trader’s crypto portfolio and country of residence.
“Tax rules differ substantially from country to country, so claiming your losses will depend on many factors, with the most prominent being the deductibility of taxes,” said Taxtris’ experts.
Accurately and timely filing tax reports are equally important as determining them. Some jurisdictions allow investors to report their losses and carry them forward in the following years. This way, the investor can use these losses to offset any gains that may arise in future bull markets.
Crypto losses typically need to be reported. As imparted by Taxtris professionals, tax authorities around the world require investors to report both their gains and their losses. Generally, not submitting a tax report is considered an offense in most jurisdictions. Not reporting annual losses can lead to higher tax bills in the future as soon as the investor begins realizing gains.
Regarding crypto businesses, Taxtris experts predict that companies and projects that invest in transparency and abide by new legislative rules will have the best chances of at least remaining afloat, if not flourishing in the upcoming waves of changes in the crypto space.
More information about Taxtris is available on the company’s official website.
Contact Info:
Name: Rosario Junco
Email: Send Email
Organization: Taxtris
Address: London
Website: https://www.taxtris.com/
Release ID: 89085873
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