{"id":3542,"date":"2023-04-10T08:00:00","date_gmt":"2023-04-10T15:00:00","guid":{"rendered":"https:\/\/bitcoin.tax\/blog\/?p=3542"},"modified":"2023-05-25T09:53:02","modified_gmt":"2023-05-25T16:53:02","slug":"crypto-tax-myths","status":"publish","type":"post","link":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/","title":{"rendered":"Top 8 Crypto Tax Myths of 2023 Debunked"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">As crypto is rising in popularity, more and more countries are looking to impose taxes on crypto transactions. Recently, <a href=\"http:\/\/bitcoin.tax\/blog\/crypto-taxes-in-portugal\" target=\"_blank\" rel=\"noreferrer noopener\">Portugal<\/a> and <a href=\"http:\/\/bitcoin.tax\/blog\/crypto-taxes-in-italy\" target=\"_blank\" rel=\"noreferrer noopener\">Italy<\/a>, previously considered <a href=\"https:\/\/bitcoin.tax\/blog\/crypto-tax-free-countries\/\" target=\"_blank\" rel=\"noreferrer noopener\">tax-friendly countries<\/a>, also introduced new crypto tax laws. Predictably, increasing regulations to the already complicated crypto landscape have resulted in many crypto tax myths.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taxpayers are misinformed and confused about what is or isn&#8217;t taxable, and the lack of clear guidance from tax authorities only worsens the situation. That is why we\u2019ve compiled the top crypto tax myths to debunk them and help investors and traders navigate the complex world of crypto taxation.<\/p>\n\n\n\n<div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-1-you-re-only-taxed-when-selling-crypto-for-fiat-currency\" data-level=\"2\">1. You\u2019re Only Taxed When Selling Crypto for Fiat Currency<\/a><\/li><li><a href=\"#h-2-tax-authorities-can-t-track-your-crypto-transactions\" data-level=\"2\">2. Tax Authorities Can\u2019t Track your Crypto Transactions<\/a><\/li><li><a href=\"#h-3-airdrops-and-hard-forks-aren-t-taxable\" data-level=\"2\">3. Airdrops and Hard Forks aren\u2019t Taxable<\/a><\/li><li><a href=\"#h-4-staking-rewards-aren-t-taxable\" data-level=\"2\">4. Staking Rewards aren\u2019t Taxable<\/a><\/li><li><a href=\"#h-5-reporting-crypto-isn-t-necessary-if-you-don-t-make-any-profit\" data-level=\"2\">5. Reporting Crypto isn\u2019t Necessary If you Don\u2019t Make any Profit<\/a><\/li><li><a href=\"#h-6-trading-crypto-on-dexs-allows-you-to-avoid-taxes\" data-level=\"2\">6. Trading Crypto on DEXs Allows you To Avoid Taxes<\/a><\/li><li><a href=\"#h-7-nfts-collectibles-or-property\" data-level=\"2\">7. NFTs &#8211; Collectibles or Property?<\/a><\/li><li><a href=\"#h-8-you-can-t-purchase-a-crypto-within-30-days-of-selling-it\" data-level=\"2\">8. You Can\u2019t Purchase a Crypto Within 30 Days of Selling it<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final Thoughts\u00a0<\/a><\/li><li><a href=\"#h-faqs\" data-level=\"2\">FAQs<\/a><ul><li><a href=\"#h-are-you-only-taxed-when-selling-crypto-for-fiat-currency\" data-level=\"3\">Are you only taxed when selling crypto for fiat currency?<\/a><\/li><li><a href=\"#h-can-tax-authorities-track-your-crypto-transactions\" data-level=\"3\">Can tax authorities track your crypto transactions?<\/a><\/li><li><a href=\"#h-are-airdrops-and-hard-forks-taxable\" data-level=\"3\">Are airdrops and hard forks taxable?<\/a><\/li><li><a href=\"#h-are-staking-rewards-taxable\" data-level=\"3\">Are staking rewards taxable?<\/a><\/li><li><a href=\"#h-do-you-have-to-report-crypto-even-if-you-don-t-make-any-profit\" data-level=\"3\">Do you have to report crypto even if you don&#8217;t make any profit?<\/a><\/li><\/ul><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-you-re-only-taxed-when-selling-crypto-for-fiat-currency\"><strong>1. You\u2019re Only Taxed When Selling Crypto for Fiat Currency<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The first crypto tax myth is you\u2019re only taxed when selling crypto for fiat currency. While it\u2019s not false that selling crypto for fiat currency is a taxable event, it\u2019s not the complete picture.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the US, and in most countries, you trigger a taxable event when an asset, crypto, in this case, changes ownership. This is also called a disposal event. Mostly, these transactions are subject to capital gains taxes. However, based on where you live, this may differ.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what are some common crypto transactions viewed as disposal events by tax authorities that you may not know of?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Crypto-to-crypto transactions: <\/strong>When you\u2019re selling one cryptocurrency to buy another, you\u2019re essentially disposing of your previous coin, triggering a taxable event, which you must report to the IRS.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, for example, if you buy 13 ETH with 4 BTC, you\u2019re disposing of your 4 BTC. You must report this transaction on your tax report. And if the prices of those 4 BTC increased since you initially bought them, you\u2019ll also be liable to capital gains taxes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Yield farming or staking crypto: <\/strong>We\u2019ve written in-depth guides on <a href=\"https:\/\/bitcoin.tax\/blog\/yield-farming-taxes\/\" target=\"_blank\" rel=\"noreferrer noopener\">yield farming<\/a> and <a href=\"https:\/\/bitcoin.tax\/blog\/what-is-defi-staking\/\" target=\"_blank\" rel=\"noreferrer noopener\">crypto staking<\/a>, discussing their tax consequences.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the US and in most countries, there are no clear, specific guidelines on crypto staking by the IRS. However, based on the existing framework, it seems that staking crypto, more specifically, locking in your crypto for a token that represents your holdings, is also viewed as a disposal event, similar to crypto-to-crypto transactions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Income and Rewards: <\/strong>While receiving income in crypto or rewards earned from mining doesn\u2019t constitute a disposal event, they are still taxable. In most countries, receiving income or rewards for completing a task, such as crypto mining, is taxed at income tax rates.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Long story short, selling crypto for fiat currency is not the only instance when you\u2019re subject to taxes, and now you know why.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-tax-authorities-can-t-track-your-crypto-transactions\"><strong>2. Tax Authorities Can\u2019t Track your Crypto Transactions<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Tax-Authorities-Cant-Track-your-Crypto-Transactions-1024x1024.png\" alt=\"Crypto Tax Myths - Tax Authorities Can\u2019t Track your Crypto Transactions\" class=\"wp-image-3598\" width=\"512\" height=\"512\" srcset=\"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Tax-Authorities-Cant-Track-your-Crypto-Transactions-1024x1024.png 1024w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Tax-Authorities-Cant-Track-your-Crypto-Transactions-300x300.png 300w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Tax-Authorities-Cant-Track-your-Crypto-Transactions-150x150.png 150w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Tax-Authorities-Cant-Track-your-Crypto-Transactions-768x768.png 768w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Tax-Authorities-Cant-Track-your-Crypto-Transactions.png 1080w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The myth that \u201ccrypto transactions are untraceable\u201d is an old one. But contrary to popular belief, crypto transactions are not untraceable. In fact, all crypto transactions and public addresses are recorded in a public blockchain, which ANYONE can view<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The identity of the public address, however, could be anonymous if the user is using a decentralized platform, though there are still ways for authorities to determine their identity.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But that is unnecessary, as most people use <a href=\"https:\/\/bitcoin.tax\/blog\/centralized-vs-decentralized-exchange\/\" target=\"_blank\" rel=\"noreferrer noopener\">centralized exchanges<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And in most countries, <a href=\"http:\/\/bitcoin.tax\/blog\/category\/crypto-exchanges\" target=\"_blank\" rel=\"noreferrer noopener\">crypto exchanges<\/a> must report user transaction information, including buy\/sell orders, transfers, and withdrawals, to their tax authority. For instance, in the US, <a href=\"https:\/\/www.kraken.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Kraken<\/a> must report to the IRS to continue operating there.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Plus, companies offering financial products and services are obligated by law to verify user identities through KYC (Know Your Customer). So, not only can they identify individuals who are avoiding taxes, but also learn their identities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-airdrops-and-hard-forks-aren-t-taxable\"><strong>3. Airdrops and Hard Forks aren\u2019t Taxable<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Airdrops and hard forks are indeed tax-free in many countries. But not all.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airdrops are subject to income taxes in most countries except Germany and Canada. Read our <a href=\"https:\/\/bitcoin.tax\/blog\/airdrop-taxes\/\" target=\"_blank\" rel=\"noreferrer noopener\">guide on airdrops<\/a> and their tax consequences to know more.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As for hard forks, it\u2019s a little tricky. We\u2019ll give you the broad strokes, but if you want to dive deep, read our <a href=\"https:\/\/bitcoin.tax\/blog\/crypto-forks\/\" target=\"_blank\" rel=\"noreferrer noopener\">guide on crypto forks<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That being said, hard forks are subject to the same tax implications as airdrops (income taxes) in the United States, Japan, The Netherlands, Spain, Switzerland and India. It is, however, tax-free in Brazil, Sweden, the United Kingdom, Denmark, Austria, Australia and Germany.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ve written in-depth crypto tax guides on all these countries. Click <a href=\"https:\/\/bitcoin.tax\/blog\/category\/crypto-tax-guides\/\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a> to check them out.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-staking-rewards-aren-t-taxable\"><strong>4. Staking Rewards aren\u2019t Taxable<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Staking-Rewards-Arent-Taxable-1024x1024.png\" alt=\"Crypto Tax Myths - Staking Rewards Aren't Taxable\" class=\"wp-image-3599\" width=\"512\" height=\"512\" srcset=\"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Staking-Rewards-Arent-Taxable-1024x1024.png 1024w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Staking-Rewards-Arent-Taxable-300x300.png 300w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Staking-Rewards-Arent-Taxable-150x150.png 150w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Staking-Rewards-Arent-Taxable-768x768.png 768w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Staking-Rewards-Arent-Taxable.png 1080w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">This myth is not without merit. In the US, the IRS has clear guidelines on newly created property &#8211; only taxed when sold, not when created. We also know that crypto is treated as property. So, based on this information, it\u2019s pretty clear that staking rewards (and mining rewards) should be tax-free since they are newly minted (created) coins (property).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But that is not how it\u2019s taxed in the US and in most countries. Similar to mining rewards and crypto income, staking rewards are also subject to income taxes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some might say it\u2019s not fair, and they have a point. In fact, the recent <a href=\"https:\/\/bitcoin.tax\/blog\/staking-taxes-lawsuit\/\" target=\"_blank\" rel=\"noreferrer noopener\">Jarrett v. United States lawsuit<\/a> was exactly about this &#8211; a taxpayer challenging the IRS on their tax treatment on staking rewards.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-reporting-crypto-isn-t-necessary-if-you-don-t-make-any-profit\"><strong>5. Reporting Crypto isn\u2019t Necessary If you Don\u2019t Make any Profit<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the biggest misconceptions about crypto taxes (and taxes in general) is that you only have to report gains. Not true.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You need to report all of your crypto sales, including the ones you incurred losses in. Failing to report your losses means you won&#8217;t be able to offset them against your gains later on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not complying with your country&#8217;s tax regulations can result in hefty fines and penalties. So, stay on the right side of the law and report all your crypto transactions whether you make a profit or not.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-trading-crypto-on-dexs-allows-you-to-avoid-taxes\"><strong>6. Trading Crypto on DEXs Allows you To Avoid Taxes<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier, we briefly discussed how trading on <a href=\"https:\/\/bitcoin.tax\/blog\/crypto-exchanges-without-kyc\/\">decentralized exchanges<\/a> allows you to stay anonymous. However, anonymity doesn\u2019t make you immune to your country\u2019s tax laws, or any laws for that matter.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tax evasion is a serious criminal offense. So, unless you\u2019re planning to commit a crime and prepared to face its consequences, pay your taxes accurately whether you trade on CEXs or DEXs.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-7-nfts-collectibles-or-property\"><strong>7. NFTs &#8211; Collectibles or Property?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While there are definitely some crazy crypto tax myths out there, this particular issue of whether NFTs are treated as collectibles or property by the IRS is more of a gray area in the <a href=\"https:\/\/bitcoin.tax\/blog\/crypto-taxes-in-the-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">US crypto tax laws<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IRS says NFTs are treated as property for tax purposes. However, some NFTs, like NBA Top Shots, might be classified as collectibles.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Why does this matter? Because the tax rate on collectibles can be as high as 28%, while the tax rates on property range from 0-20%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unfortunately, we don\u2019t have a definite answer, but roughly speaking, most NFTs will still be considered property. Read our <a href=\"https:\/\/bitcoin.tax\/blog\/nft-taxes\/\" target=\"_blank\" rel=\"noreferrer noopener\">guide on NFT taxes<\/a> to know more. If you\u2019re unsure, we suggest you consult a tax professional.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-8-you-can-t-purchase-a-crypto-within-30-days-of-selling-it\"><strong>8. You Can\u2019t Purchase a Crypto Within 30 Days of Selling it<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/shutterstock_2155979375-1024x680.jpg\" alt=\"You Can\u2019t Purchase a Crypto Within 30 Days of Selling it\" class=\"wp-image-3600\" width=\"512\" height=\"340\" srcset=\"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/shutterstock_2155979375-1024x680.jpg 1024w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/shutterstock_2155979375-300x199.jpg 300w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/shutterstock_2155979375-768x510.jpg 768w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/shutterstock_2155979375-1536x1021.jpg 1536w, https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/shutterstock_2155979375-2048x1361.jpg 2048w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/bitcoin.tax\/blog\/tax-loss-harvesting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tax loss harvesting<\/a> is an excellent way to utilize your losses to reduce taxes. But has it ever crossed your mind that you can sell your crypto, incur the gains and buy it right back?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It probably has, but you already know about the wash sale rule.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The wash sale rule is a tax law that prevents taxpayers from claiming losses on assets they repurchase within 30 days of selling or pre-purchase before 30 days of selling.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While different countries have different laws around the wash sale rule, in the US, it only applies to stocks and securities, not crypto, since the IRS treats crypto as property.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means you can repurchase your crypto within 30 days of selling it and still claim losses. The US government will close this tax loophole sooner or later, but until then, here is how you can <a href=\"https:\/\/bitcoin.tax\/blog\/crypto-wash-sale-rule\/\" target=\"_blank\" rel=\"noreferrer noopener\">reduce your taxes utilizing the wash sale rule.<\/a>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\"><strong>Final Thoughts&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As we said before, increasing regulation with the lack of nuanced guidelines is the cause of rising confusion and misinformation among taxpayers. However, we&#8217;ve effectively debunked some of these crypto tax myths today, which will hopefully help clear up some of the confusion.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the coming years, it&#8217;s crucial that different governments invest more time and resources into understanding the nuances and intricacies of the crypto economy and transactions to develop better, more precise guidelines that will benefit both taxpayers and regulators alike.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\"><strong>FAQs<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-you-only-taxed-when-selling-crypto-for-fiat-currency\"><strong>Are you only taxed when selling crypto for fiat currency?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No, you are taxed when an asset, crypto in this case, changes ownership, including crypto-to-crypto transactions and yield farming or staking crypto. Income and rewards are also taxable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-can-tax-authorities-track-your-crypto-transactions\"><strong>Can tax authorities track your crypto transactions?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, tax authorities can track your crypto transactions because all crypto transactions and public addresses are recorded in a public blockchain, and centralized exchanges must report user transaction information to their tax authority.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-airdrops-and-hard-forks-taxable\"><strong>Are airdrops and hard forks taxable?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Airdrops are subject to income taxes in most countries except Germany and Canada, while hard forks are taxable in some countries and tax-free in others.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-staking-rewards-taxable\"><strong>Are staking rewards taxable?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, staking rewards are taxable as income taxes in the US and most countries, even though they are newly minted coins.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-do-you-have-to-report-crypto-even-if-you-don-t-make-any-profit\"><strong>Do you have to report crypto even if you don&#8217;t make any profit?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, you need to report all of your crypto sales, including the ones you incurred losses in, to offset them against your gains later on. Not complying with your country&#8217;s tax regulations can result in hefty fines and penalties.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As crypto is rising in popularity, more and more countries are looking to impose taxes on crypto transactions. Recently, Portugal and Italy, previously considered tax-friendly countries, also introduced new crypto tax laws. Predictably, increasing regulations to the already complicated crypto landscape have resulted in many crypto tax myths.&nbsp; Taxpayers are misinformed and confused about what [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":3601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-3542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-everything-crypto"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.12 (Yoast SEO v28.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Top 8 Crypto Tax Myths of 2023 Debunked - BitcoinTaxes<\/title>\n<meta name=\"description\" content=\"Learn about the crypto tax myths surrounding crypto, NFTs and DeFi as we debunk them and clear the ambiguity around crypto regulations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top 8 Crypto Tax Myths of 2023 Debunked\" \/>\n<meta property=\"og:description\" content=\"Learn about the crypto tax myths surrounding crypto, NFTs and DeFi as we debunk them and clear the ambiguity around crypto regulations.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/\" \/>\n<meta property=\"og:site_name\" content=\"BitcoinTaxes\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/facebook.com\/bitcointaxes\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-10T15:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-25T16:53:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Debunked-789x1024.png\" \/>\n\t<meta property=\"og:image:width\" content=\"789\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Rishi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@bitcointax\" \/>\n<meta name=\"twitter:site\" content=\"@bitcointax\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rishi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/\"},\"author\":{\"name\":\"Rishi\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#\\\/schema\\\/person\\\/514b69b1296c5a66cc7f35c9a04c55b7\"},\"headline\":\"Top 8 Crypto Tax Myths of 2023 Debunked\",\"datePublished\":\"2023-04-10T15:00:00+00:00\",\"dateModified\":\"2023-05-25T16:53:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/\"},\"wordCount\":1748,\"publisher\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/Crypto-Tax-Myths-Debunked.png\",\"articleSection\":[\"Everything Crypto\"],\"inLanguage\":\"en-US\",\"accessibilityFeature\":[\"tableOfContents\"]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/\",\"url\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/\",\"name\":\"Top 8 Crypto Tax Myths of 2023 Debunked - BitcoinTaxes\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/Crypto-Tax-Myths-Debunked.png\",\"datePublished\":\"2023-04-10T15:00:00+00:00\",\"dateModified\":\"2023-05-25T16:53:02+00:00\",\"description\":\"Learn about the crypto tax myths surrounding crypto, NFTs and DeFi as we debunk them and clear the ambiguity around crypto regulations.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/#primaryimage\",\"url\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/Crypto-Tax-Myths-Debunked.png\",\"contentUrl\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/Crypto-Tax-Myths-Debunked.png\",\"width\":1480,\"height\":1920,\"caption\":\"Crypto Tax Myths Debunked\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/crypto-tax-myths\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Top 8 Crypto Tax Myths of 2023 Debunked\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/\",\"name\":\"BitcoinTaxes\",\"description\":\"Crypto taxes for cryptocurrency users, traders and accountants\",\"publisher\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#organization\",\"name\":\"BitcoinTaxes\",\"url\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/08\\\/cropped-bitcointax-240.png\",\"contentUrl\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/08\\\/cropped-bitcointax-240.png\",\"width\":512,\"height\":512,\"caption\":\"BitcoinTaxes\"},\"image\":{\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/facebook.com\\\/bitcointaxes\",\"https:\\\/\\\/x.com\\\/bitcointax\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/#\\\/schema\\\/person\\\/514b69b1296c5a66cc7f35c9a04c55b7\",\"name\":\"Rishi\",\"url\":\"https:\\\/\\\/bitcoin.tax\\\/blog\\\/author\\\/dadrishirajgmail-com\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Top 8 Crypto Tax Myths of 2023 Debunked - BitcoinTaxes","description":"Learn about the crypto tax myths surrounding crypto, NFTs and DeFi as we debunk them and clear the ambiguity around crypto regulations.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/","og_locale":"en_US","og_type":"article","og_title":"Top 8 Crypto Tax Myths of 2023 Debunked","og_description":"Learn about the crypto tax myths surrounding crypto, NFTs and DeFi as we debunk them and clear the ambiguity around crypto regulations.","og_url":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/","og_site_name":"BitcoinTaxes","article_publisher":"https:\/\/facebook.com\/bitcointaxes","article_published_time":"2023-04-10T15:00:00+00:00","article_modified_time":"2023-05-25T16:53:02+00:00","og_image":[{"width":789,"height":1024,"url":"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Debunked-789x1024.png","type":"image\/png"}],"author":"Rishi","twitter_card":"summary_large_image","twitter_creator":"@bitcointax","twitter_site":"@bitcointax","twitter_misc":{"Written by":"Rishi","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/#article","isPartOf":{"@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/"},"author":{"name":"Rishi","@id":"https:\/\/bitcoin.tax\/blog\/#\/schema\/person\/514b69b1296c5a66cc7f35c9a04c55b7"},"headline":"Top 8 Crypto Tax Myths of 2023 Debunked","datePublished":"2023-04-10T15:00:00+00:00","dateModified":"2023-05-25T16:53:02+00:00","mainEntityOfPage":{"@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/"},"wordCount":1748,"publisher":{"@id":"https:\/\/bitcoin.tax\/blog\/#organization"},"image":{"@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/#primaryimage"},"thumbnailUrl":"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Debunked.png","articleSection":["Everything Crypto"],"inLanguage":"en-US","accessibilityFeature":["tableOfContents"]},{"@type":"WebPage","@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/","url":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/","name":"Top 8 Crypto Tax Myths of 2023 Debunked - BitcoinTaxes","isPartOf":{"@id":"https:\/\/bitcoin.tax\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/#primaryimage"},"image":{"@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/#primaryimage"},"thumbnailUrl":"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Debunked.png","datePublished":"2023-04-10T15:00:00+00:00","dateModified":"2023-05-25T16:53:02+00:00","description":"Learn about the crypto tax myths surrounding crypto, NFTs and DeFi as we debunk them and clear the ambiguity around crypto regulations.","breadcrumb":{"@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/#primaryimage","url":"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Debunked.png","contentUrl":"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2023\/03\/Crypto-Tax-Myths-Debunked.png","width":1480,"height":1920,"caption":"Crypto Tax Myths Debunked"},{"@type":"BreadcrumbList","@id":"https:\/\/bitcoin.tax\/blog\/crypto-tax-myths\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/bitcoin.tax\/blog\/"},{"@type":"ListItem","position":2,"name":"Top 8 Crypto Tax Myths of 2023 Debunked"}]},{"@type":"WebSite","@id":"https:\/\/bitcoin.tax\/blog\/#website","url":"https:\/\/bitcoin.tax\/blog\/","name":"BitcoinTaxes","description":"Crypto taxes for cryptocurrency users, traders and accountants","publisher":{"@id":"https:\/\/bitcoin.tax\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/bitcoin.tax\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/bitcoin.tax\/blog\/#organization","name":"BitcoinTaxes","url":"https:\/\/bitcoin.tax\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/bitcoin.tax\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2021\/08\/cropped-bitcointax-240.png","contentUrl":"https:\/\/bitcoin.tax\/blog\/wp-content\/uploads\/2021\/08\/cropped-bitcointax-240.png","width":512,"height":512,"caption":"BitcoinTaxes"},"image":{"@id":"https:\/\/bitcoin.tax\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/facebook.com\/bitcointaxes","https:\/\/x.com\/bitcointax"]},{"@type":"Person","@id":"https:\/\/bitcoin.tax\/blog\/#\/schema\/person\/514b69b1296c5a66cc7f35c9a04c55b7","name":"Rishi","url":"https:\/\/bitcoin.tax\/blog\/author\/dadrishirajgmail-com\/"}]}},"_links":{"self":[{"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/posts\/3542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/comments?post=3542"}],"version-history":[{"count":4,"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/posts\/3542\/revisions"}],"predecessor-version":[{"id":4168,"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/posts\/3542\/revisions\/4168"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/media\/3601"}],"wp:attachment":[{"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/media?parent=3542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/categories?post=3542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoin.tax\/blog\/wp-json\/wp\/v2\/tags?post=3542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}