Categories: Market

IRS changes tax form 2021 to focus on taxable crypto transactions

The U.S. Internal Revenue Service (IRS) launched a draft tax form 1040 2021 on Thursday, July twenty second. The 1040 is the first tax form used within the United States for submitting revenue tax.

The draft reveals that the tax workplace has revised the query of cryptocurrencies. The previous query on the 2020 form is:

“At any point in 2020, have you received, sold, sent, bartered, or otherwise made any financial gain in any cryptocurrency?”

IRS Form 1040 for 2020.

For 2021, the IRS eliminated the phrase “send” and changed “collected” with “handled”.

“At any point in 2021, did you receive, sell, barter, or otherwise process any financial gain in a cryptocurrency?”

Draft IRS Form 1040 for 2021.

Shehan Chandrasekera, Director of Tax Strategy at tax software program firm Cointracker, explains that “The 2020 version of the question is much broader as the revised question only asks about your taxable transactions.”

“While these changes are unlikely to have a lot of an impression on your taxes, it reveals that the IRS has realized from the 2020 model and adjusted course.

According to the revised query, you don’t want to choose “Yes” if you’re solely sending or shopping for cryptocurrencies between wallets / exchanges. Both are tax-free transactions. “

Mr. Teacher

According to News.Bitcoin

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