Thank you. Thank you. Thank you. Hello, hello. Welcome to the Crypto Taxes. I'm here with Shihan from CoinTracker. And
basically today we're going to talk about crypto taxes and particularly what's different
this year than previous years. So I've been doing this for about three years with CoinTracker.
I've been partnering with them during the tax season,
my favorite season of the year.
Everyone loves taxes so much.
And this year it's going to be, I guess,
either more or less complicated because the exchanges are going to be sending some
information to you and to the government. And so it's important to get things right.
So I'll hand it over to Xi'an so he can talk about in more detail and
more authoritatively about what's going on this year for taxes.
about what's going on this year for taxes.
Yeah. Hey, Billy. Thanks.
Thank you, everybody else, for joining us, Will.
Shehan here, head of tax strategy at CoinTracker and a CPA.
Yeah, we want to keep this thing very interactive.
Maybe I'll start with some basics and some of the new things
you guys need to know in this particular tax season.
So we always kind of start these sessions with like the super basic stuff, like, you know,
things like when do you have to pay taxes on crypto? So these are the five situations that
you need to be aware of. If you went through any of these situations in 2025, that means you would
like to have a tax liability and you will have to file additional forms. So let
me kind of go through those one by one. Number one is when you cash out. It's pretty self-explanatory.
You bought a Bitcoin, you sold it for cash, you got to pay capital gain taxes if you made money.
Number two is when you swap cryptocurrency. So let's say you purchase Bitcoin using Ethereum,
you still have to pay taxes even though you're not realizing any cash in hand.
So something to keep in mind.
And number three is when you earn cryptocurrency.
You can earn cryptocurrency through employment, mining, staking, other rewards, etc.
Those rewards are taxed as regular income when you receive them and taxed again when you sell those rewards later.
The next one is when you spend cryptocurrency. Let's say you spent a Bitcoin to buy a car or
something like that. That's considered a taxable event. And then the last one is, which I haven't
seen much lately, if you got airdropped or if you
went to like a hard fork and receive like a new coin, that's taxable.
So those are the five things to know if you're in crypto.
So what's happening new 2025?
So for the first time, exchanges are starting to kind of track your activity.
And for the 2025 tax year year if you've sold anything
meaning if you cashed out or went from like one point yeah did you say something oh it
looked like i cut out but um okay so let me so what's for 2025 EA is that if you cashed out or swapped cryptocurrencies
in an exchange, the exchange is going to issue you this new tax form called form 1099-DA.
It's very similar to what you receive from stock brokers, but these forms have a lot
of missing information this year.
Like for example, if you sell something uh in the
2025 form 10998 it's only going to show you the proceeds amount not the cost basis uh so that's
a big thing that you need to be aware of and also if you have multiple exchanges and wallets and
transfers in between them these forms can have gaps and lastly uh if you did anything on DeFi, you're not going to get any type
of tax form, but you still have to use like a crypto tax software tool to figure out your taxes
correctly. So yeah, a lot of things are happening. The TLDR is that now IRS has a scalable way of
knowing your crypto activity that you do inside centralized exchanges. And that has not been the case so far.
So that's what's changing this year.
Billy, we cannot hear you if you're speaking.
I see that you are unmuted. Thank you. Obrigado.
