Cryptocurrency has taken the world by storm since it first came on the scene in 2009. Since then, its use has grown exponentially, with people all over the world investing in it, trading it, and using it to purchase goods and services. In the U.S., the federal government has been trying to figure out how to best regulate the industry, and one of the key issues is taxation. As cryptocurrency becomes more popular, many investors are asking the same question: what are the taxes on my crypto investments?
The answer to this question is not a simple one, as there are a variety of laws and regulations that must be taken into consideration. In this article, we’ll explore the basics of Voyager crypto taxes so you can make informed decisions when it comes to your digital asset investments.
What Is a Voyager Cryptocurrency?
Voyager Digital is a cryptocurrency broker and asset management platform. It is a regulated broker dealer that works with various exchanges to provide customers with secure cryptocurrency trading and investing. It offers a wide range of services, including a mobile app for trading on the go, access to a variety of crypto assets, and a secure crypto wallet for storing your digital coins.
Voyager also offers a tax calculator that allows investors to quickly and easily calculate their crypto taxes. This calculator takes into account the type of crypto asset, the amount invested, the country of origin, and the type of income (capital gains or ordinary income). It then calculates the taxes due based on the applicable laws and regulations.
What Are the Different Types of Crypto Taxes?
Cryptocurrency taxes can generally be divided into two categories: capital gains taxes and ordinary income taxes. Capital gains taxes refer to taxes on the profits made from selling cryptocurrency, while ordinary income taxes refer to taxes on the income made from holding or trading crypto assets.
The amount of taxes due on your crypto assets depends on your country of residence and the type of crypto asset held. Generally, capital gains taxes are lower than ordinary income taxes, so it’s important to understand the applicable laws in your jurisdiction and plan your trades accordingly.
How Do I Calculate My Voyager Crypto Taxes?
Voyager’s tax calculator is the easiest way to calculate taxes on your crypto investments. All you need to do is enter the type of crypto asset you are trading, the amount invested, the country of origin, and the type of income. The calculator will then determine the applicable taxes based on the laws and regulations in your jurisdiction.
If you’re not sure how to use the calculator, Voyager also provides step-by-step instructions and tutorials to walk you through the process. It’s important to note that the taxes you owe may change over time, so it’s important to regularly check your tax position to ensure you’re compliant with the applicable laws.
What Are the Advantages of Using Voyager’s Tax Calculator?
Voyager’s tax calculator is a great tool for those who want to stay on top of their crypto taxes. It’s easy to use and provides accurate results, so you can be sure you’re paying the right amount of taxes. It also saves you time and effort, as you don’t have to manually calculate your taxes.
In addition, the calculator can help you identify potential tax savings. If you’re trading a lot of crypto assets, you may be able to take advantage of tax deductions or tax credits that can reduce your overall tax liability. By using the calculator, you can quickly identify potential savings and make informed decisions when it comes to your crypto investments.
Conclusion
Taxes on crypto investments can be complicated, but Voyager’s tax calculator is a great tool to help you stay compliant and potentially save money. With the calculator, you can easily and accurately calculate your crypto taxes, so you can focus on what matters most—making money from your investments.