President Biden today enacted the $ 1.2 trillion infrastructure bill, providing for investments in U.S. infrastructure. So you might be wondering “what does the infrastructure bill mean for my taxes?” “
Here are some key things you need to know about the infrastructure bill and your taxes:
There isn’t much in the infrastructure bill that has an impact on taxes, but if you’re one of the millions who are diving into the explosion in crypto investments, the bill contains a supply of cryptocurrency.
Does the new cryptocurrency provision impact my 2021 taxes?
No, this does not impact your 2021 taxes and it is not in effect until tax year 2023.
What is the new cryptocurrency provision?
The measure would require brokers to report digital asset transactions to the Internal Revenue Service (IRS), starting in 2023. It would also require businesses to report cryptocurrency transactions over $ 10,000, which is the current threshold for cash transactions subject to IRS reporting. conditions.
If I sold cryptocurrency in 2021 and my broker was not required to report my trades, do I still have to claim my sell trades?
Yes, the IRS has always issued guidelines on cryptocurrency, first in 2014 and again in 2019. The IRS says that cryptocurrency or virtual currency is treated as property for federal income tax purposes, therefore, you must report any gain or loss on the sale of your cryptocurrency as you would with the sale of shares. The first page of IRS Form 1040 also includes a question as to whether you have received, sold, sent, traded, or acquired a financial interest in a virtual currency.
Check out our Free Interactive Cryptocurrency Tax Calculator, which is just a screen, will answer your burning questions about your cryptocurrency / bitcoin sales and give you an estimate of how much your sales will be taxed, and much more. To help you with your tax planning for the 2021 tax year, you can also find out if you have a capital gain or loss and compare the tax result of a short-term capital gain versus a long-term capital gain, whether you’ve already sold or are planning to sell. Our free interactive cryptocurrency tax will help you estimate your taxes on your sales, whether you received your cryptocurrency through a purchase, as payment for services, or in exchange for goods.
I heard that there is another bill that could have more tax provisions, what are they?
There is another bill being proposed called the Build Better Back plan, however, we cannot speculate on what provisions will be passed. If and when tax laws are adopted or amended, TurboTax will be up to date with the latest tax laws. Come back to the TurboTax blog where we will keep you updated on the latest changes in tax legislation.
At tax time, TurboTax ask simple questions about you and tell you which tax credits and deductions you are entitled to. If you have any questions, you can connect live via one-way video to a CPA or TurboTax live tax professional to get your questions answered along the way, have your taxes reviewed, or fully remit your taxes in the. comfort of your own home. If you invest in cryptocurrency, TurboTax Premier can import up to 4000 cryptocurrency transactions at a time.