Every bit of your financial life holds potential influences for your taxes, Bitcoin transactions are no exception. Understanding when, why, and how to track the Bitcoin price (USD) can be integral to your crypto tax filing. These digital commodity transactions can influence your tax return, possibly leading to substantial savings or unanticipated tax liabilities. The volatile nature of Bitcoin prices warrants careful tracking and documentation for accuracy in tax reporting.nnIt’s crucial to track Bitcoinâs price at the time of purchase and sale accurately. In the United States, the IRS views Bitcoin as property rather than currency, which means it’s subject to capital gains tax. If you can identify the Bitcoin’s USD value when buying or selling, you can determine your capital gains more accurately.nnAvoiding tax misunderstandings and ensuring compliance with the IRS requires proper attention to Bitcoin transactions. Documenting the Bitcoin-USD conversion rate at the time will allow you to detail your financial actions with confidence. Read More
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