If You Made Money on Crypto, Here Are 5 Tax Traps To Avoid Now
Making money on crypto can feel straightforward until tax season reveals how many everyday transactions quietly trigger taxes. As IRS reporting expands, investors who assume nothing counts until they cash out may be setting themselves up for an expensive surprise.
Crypto experts explained five tax traps to avoid.
Many crypto investors assume taxes only matter when money hits their bank account. “Many taxable events happen long before that,” said Ravi Parikh, CFO and managing director of Parikh Financial.
Gregory Monaco, a CPA and the owner of Monaco CPA, explained that even when you trade one coin for another, the IRS usually treats it like you sold the first coin.
Another way to think about crypto is as the IRS…
