Author and crypto expert Abhinav R. Soomaney has a new book out called “Cryptocurrency in a Nutshell.” In the composition, Soomaney discusses a big topic in the crypto space: taxation. A New Crypto Tax Book By Abhinav R. Soomaney Taxation in crypto has often been talked about amongst even the most knowledgeable analysts given tax protocols within the arena’s borders can be quite complicated. In fact, during the 2020 election, there were two democrat candidates – Michael Bloomberg, the former New York City mayor, and entrepreneur Andrew Yang – that claimed they would make the crypto taxation laws in America easier to understand. This was one of the big staples of their campaigns. That’s how difficult crypto taxation laws can be. Neither of these candidates were able to
Topics:
Nick Marinoff considers the following as important: Abhinav R. Soomaney, Andrew Yang, Bitcoin News, crypto-taxation, News
This could be interesting, too:
Temitope Olatunji writes X Empire Unveils ‘Chill Phase’ Update: Community to Benefit from Expanded Tokenomics
Bhushan Akolkar writes Cardano Investors Continue to Be Hopeful despite 11% ADA Price Drop
Bena Ilyas writes Stablecoin Transactions Constitute 43% of Sub-Saharan Africa’s Volume
Chimamanda U. Martha writes Crypto Exchange ADEX Teams Up with Unizen to Enhance Trading Experience for Users
Author and crypto expert Abhinav R. Soomaney has a new book out called “Cryptocurrency in a Nutshell.” In the composition, Soomaney discusses a big topic in the crypto space: taxation.
A New Crypto Tax Book By Abhinav R. Soomaney
Taxation in crypto has often been talked about amongst even the most knowledgeable analysts given tax protocols within the arena’s borders can be quite complicated. In fact, during the 2020 election, there were two democrat candidates – Michael Bloomberg, the former New York City mayor, and entrepreneur Andrew Yang – that claimed they would make the crypto taxation laws in America easier to understand. This was one of the big staples of their campaigns. That’s how difficult crypto taxation laws can be.
Neither of these candidates were able to get very far given at the time, crypto was still not a major topic amongst the public or politicians like it is today. However, if Soomaney can publish an entire book on the subject, you know things are getting real, and crypto taxation is becoming something that many more people are now curious about.
In the book, Soomaney says one of the big things that often increase tax obligations is when traders shift from long term to short-term trading. While this can ultimately minimize capital gains, it can make things far more noticeable to agencies like the IRS. He writes:
Minimize capital gains by using the highest-in-first-out tax calculation method that allows you to use the highest cost basis pool against the first sale until that inventory pool is completely exhausted. Maintaining accurate records for tokens transferred from one platform to another will help to determine whether the capital gain is short-term capital gain or long-term capital gain and accurately report taxes.
He also advises crypto investors to look at several money-saving strategies and not just get stuck on one. He writes:
Do not store all tokens in one wallet. Split [them] between multiple exchanges and wallets to avoid complete loss, especially when exchanges like FTX/Celsius crash or liquidate.
Trying to Help as Best He Can
In an interview, he stated that one of the big problems with the way crypto is taxed in the United States is that very few regulations and guidelines exist to help people fully understand what they’re getting into before they begin trading or purchasing assets. He ultimately wrote the book to explain blockchain technology further and help newbie investors as best he could. He mentioned:
With very limited government guidelines, every step of the crypto tax space can be looked at as a challenge, but we as crypto tax experts try our best to find a solution for all clients tailored to their needs.
The book also contains special references to Satoshi Nakamoto, the man purportedly behind the creation of the world’s number one digital currency by market cap.