Get up to speed on important rules about crypto and other alternative investments for this tax season with CPA and TurboTax expert Lisa Greene-Lewis.
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00:00So tax season is upon us, and you can't talk about tax season without talking about cryptocurrencies.
00:11Lisa Green Lewis, CPA and TurboTax expert is here with us to decipher all of it.
00:16So Lisa, I think there's a big misconception out there that people think there's no tax
00:20implications with cryptocurrencies, and that is, you know, unequivocally wrong, right?
00:25So tell us what we need to know as we file our taxes for 2024.
00:31The first thing you need to know.
00:32So in 2024, especially towards the end, we saw a crypto surge.
00:38That was one trend that we saw.
00:41And so people that sold crypto, they may have made some huge gains.
00:46But one thing to keep in mind, if you have any losses, just like with stock, you can
00:51offset those losses against your gains.
00:54And then if you have a net loss, you can offset up to $3,000 against your ordinary
01:01income like from W-2 wages.
01:03And then if you still have a loss, you can carry that forward to the next year's taxes.
01:08And I always encourage people to remember that.
01:11A lot of people forget about their carry forward losses, and that can reduce your taxes.
01:16Yeah, well, that's one of the perks of using a software, right?
01:20It remembers it for you, thankfully.
01:22So let's talk about the reporting of this, though.
01:25The place where my cryptocurrency is held should send me tax docs, right?
01:31Because these trades have to be reported.
01:35Crypto platforms and brokers were not required to report this, although a lot of them were
01:40still reporting.
01:42Now starting in 2026 for your 2025 taxes, they will be issuing you a new form.
01:49It's called a 1099-DA for digital assets.
01:54And so you will be seeing that form and on that form, they're going to be required to
01:58report your sales transaction and your cost basis.
02:02So it was really important by January 31st, you were supposed to report your cost basis
02:10to your crypto platform or your broker, since you can select what cost basis you want to
02:16use.
02:17Yeah, and that's key for keeping track going forward.
02:20So if you haven't done that, maybe reach out and try to get that on so that your reporting
02:25is good for next year.
02:26And in closing here, let's talk about like, you know, alt investing is all the rage these
02:30days, alternative investing, basically.
02:33What do people need to know about that come tax time?
02:36Yeah, another trend we're seeing is Gen Z, they are doing these alt investments.
02:41And what that is, they're investing in things like gold or silver.
02:46And what they need to know is, you know, how you account for that.
02:52If you sell it, it's the same as if you do a stock transaction and sell or a crypto sale.
03:00TurboTax allows you to automatically import up to 20,000 crypto transactions and 10,000
03:06stock transactions.
03:08And then you can easily do your taxes yourself with TurboTax, or you can hand your taxes
03:14off to our TurboTax Live full service experts.
03:18Everything gets reported to Uncle Sam, bottom line here, Lisa Green-Lewis, CPA and TurboTax
03:23expert.
03:24Thank you for shedding light on all of that.
03:26Thank you for having me.