Not only that, but by making strategic trades in loss positions, you can reduce your and reduce the amount of get a tax refund. It cryptocurrency instead, this is tax deductible. Staking or mining cryptocurrency.
Filing an amended tax return isn't likely to increase your risk of an audit � the IRS is more lenient with taxpayers who make a good-faith attempt to report all of their income. For more information, check out our guide to how cryptocurrency is taxed. Key takeaways Not reporting your cryptocurrency on your taxes can lead to fines, audits, and other penalties. Read More. The gain or loss is the difference between your purchase price, known as basis, and the value when selling or exchanging, and your tax rates depend on the length of ownership.
