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Prepare Now for Next Year’s Crypto Taxes

crypto taxes prepare now for end of year

Get a jump on next year’s crypto taxes now and cry less later; plus Bitcoin and Ethereum technical analysis

Technical Tuesdays

  • Basics of Crypto Taxes
  • Bitcoin/USD
  • Ethereum/USD

Crypto Taxes

With the end of the year approaching many traders and investors are getting prepared for another year of tax reporting. Below are some of the basics on how crypto is taxed and what is considered taxable.

In 2014 the IRS put out a notice that classified cryptocurrency as “property” instead of a currency, therefore crypto is treated the same way as stocks, bonds, and other assets.

laser eyes uncle sam wants to tax your crypto

Taxable & Non–Taxable Crypto Events

  • Selling crypto for Fiat Currency (USD, Euro, CAD, etc.)
  • Trading crypto in exchange for other Cryptos
  • Buying goods or services using crypto

Non – Taxable
  • Buying crypto with fiat currency
  • Transferring crypto from one wallet to another
  • Gifting crypto (non-taxable below a limit)
  • Donating crypto to a tax-exempt organization

Long Term vs Short Term Capital Gains

Long Term Capital Gains

Refers to gains from crypto assets which have been held for longer than 365 days. Investors who hold for longer than a year benefit more than short term investors by paying lower crypto tax fees.

Short Term Capital Gains

Refers to gains from crypto assets which have been held for less than 365 days. Traders and investors who hold cryptos for less than a year are not given a tax break, and these gains are taxed similar to taxes on ordinary income.

Taxable NFT Events
  • Selling an NFT in exchange for cryptocurrency
  • Using crypto to buy an NFT
  • Exchanging one NFT for another NFT

This is not a complete guide, and one should seek guidance from a crypto tax advisor before filing crypto taxes to ensure that all areas of filing have been covered.

crypto tax advice with andrew gordon
Watch: Interview with tax professional Andrew Gordon of Gordon Law


BTC Daily Chart

bitcoin btc daily chart december 28 2021


BTC Weekly Chart

bitcoin btc weekly chart december 28 2021


Bitcoin has broken the $50k level that we discussed in last week’s article and now the next important level to reclaim would be $53k. At the time of writing Bitcoin is at about $49k and price seems to be retesting the $50k-ish daily level before another attempt to the upside. If this area does not hold, I would expect anywhere between $44k – $46k to hold up as support. I would be willing to put my bull hat on if Bitcoin could put in a daily candle close over the $53k level in the coming days.

Bitcoin Bull Scenario

Bitcoin support at $50k holds up and then we look at $53k as the next resistance to reclaim.

Bitcoin Bear Scenario

Bitcoin does not hold support at $50k, and then we look for the $44k – $46k daily level to hold. If this level fails, we target the weekly MUST HOLD level of $40.6k


ETH Daily Chart

ethereum eth daily chart december 28 2021


ETH Weekly Chart

ethereum eth weekly chart december 28 2021


Ethereum seems to still be in a battle with the $4k level. At the time of writing $ETH is about $3900 and seems to be waiting on Bitcoin to decide its fate. In my opinion the best move to make for trading $ETH would be to wait for a weekly close over the $4k level or to buy another test of the $3600 daily level.

Ethereum Bull Scenario

Ethereum holds support at the $4k level on the weekly time frame and then pushes to reclaim $4.3k.

Ethereum Bear Scenario

If the $4k level cannot be held as daily support, we should target the next support level below of $3.6k level.

Free Beginner’s Guide to Learning Technical Analysis
Beginner’s Guide to Learning Technical Analysis


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