Taxes
The results of a survey published by Credit Karma estimate that crypto investors in the U.S. realized losses of approximately $1.7 billion during the previous tax season. Additionally, the report finds that U.S. investors incurred a further $5.7 billion in unrealized losses.
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US Cryptocurrency Investors Realized $1.7B in Losses During 2018
According to a survey conducted by Credit Karma, investors based in the United States realized a combined loss of roughly $1.7 billion during 2018, equating to an average of $718 per person. The participants comprised 1,009 U.S. cryptocurrency investors aged 18 or older who were questioned during November 2018.
The survey found that only 53 percent of investors had decided that they would report their cryptocurrency gains and losses on their tax returns. A further 19 percent of participants stated that they had not yet decided whether they would report the performance of their cryptocurrency investments.
According to the report, 59 percent of profitable traders intended to report their returns, whereas only 38 percent of investors who lost money during the previous financial year planned to do so.
More Than Half of US Investors Unaware of Tax Deductions on Crypto Losses
The survey found that 58 percent of respondents were not aware they can claim tax deductions on cryptocurrency losses, including 61 percent of investors who had realized losses during the preceding tax season.
The report also estimated that U.S. investors had incurred $5.7 billion in unrealized losses, suggesting that many opportunities to claim tax deductions have been missed by American cryptocurrency traders.
Of the respondents that stated they would not report the performance of their cryptocurrency portfolio, 35 percent were not aware that they are required to do so, and 55 percent believed that they were not required to due to how small their gains or losses were.
Are you surprised by how few U.S. cryptocurrency investors were aware of their reporting requirements? Share your thoughts in the comments section below!
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