Time To Report Your Dinero Gains

Time To Report Your Dinero Gains

You should feel proud of yourself, porque instead of spending your days getting the newest intel from your primas and their love lives, you finally got hooked on some chisme that is worthy: Latinos have started to notice that there is an unprecedented opportunity to start our wealth-building journey by investing.  Once we began researching, we realized that Crypto is an appealing investment form for many of us these days.

 It does make sense when even your mom wants to know what is that Bitcoin “thing” everyone keeps talking about.  Pero we know for a fact that explaining it is definitely more complicated than deciphering el horóscopo… way more.


Let’s restate what we all know so far: Cryptocurrency is digital money. Basically, it’s anonymous “coins” or “tokens” that get “mined.” All of the transactions are secure and secret and they exist on what’s called “blockchain”. Do you remember how your abuela had a thing called a la libreta, or checkbook, that she used to balance things out? Well, the blockchain is similar to that ledger and it has all the info about each transaction. 


Great, now that we’re sure we are all on the same page, here’s an important follow-up question: do you know how to report Cryptocurrency on your taxes?


Bueno, to be fair, all of this Cryptocurrency frenzy is brand new and most people are still trying to understand. t. However, seeing Latinos asking, researching, and learning feels refreshing as if the game of wealth-building can finally turn in our favor. But let’s not forget that we have to make sure we are also aware of the next steps.


If you traded Crypto, sold stocks, or have rental income, whether you’re doing your taxes yourself or working with a tax expert, our amigos at TurboTax have info to help you navigate tax season and stay afloat! Keep in mind that the deadline to file your taxes was moved to May 17th, so if you still have questions now it’s a good time to get them answered.¡Ponte las pilas!


By the way, our TurboTax amigos have also hooked up our community by offering a limited number of codes to use TurboTax for FREE! 🙌🏽😉 Whether you have investments or not, it’s time to let all of the familia know so we can get our taxes done once and for all! That’s a chisme worth spreading around.


Echale un vistazo al TurboTax bilingual blog https://blog.turbotax.intuit.com/ to find most of your investments tax answers and other tax-related topics in English or Spanish.


Want to know how to enter? Check out our Instagram post HERE.


And in case you’ve got more questions…

As soon as we started talking about how Latinos can report their sales transactions on Crypto and other investments, there were a lot of people from our comunidad reaching out with questions.


TurboTax answered two of the most common during our Crypto Dinero Session. See below:


  • How much should one set aside from each sale to cover the taxes? 
  • First, it depends on how long you’ve held onto the investment before you sell it and your tax bracket.
  • If you’ve held onto the asset longer than a year before selling you will be taxed at Long Term Capital Gains rates based on your taxable income, so you should set aside taxes based on your long term capital gains tax rate according to your taxable income
  • Long-Term Capital Gains rates are 0%, 15%, and 20%
  • If you’ve held onto an asset for one year or less before selling you will be taxed at Short-Term Capital Gains rates based on your taxable income so you should set aside taxes based on your short-term capital gains tax rate according to your income.
  • Short-Term Capital Gains rates are the same as the ordinary rates you pay on your taxable income like wages.  Short-term rates are 10%, 12%, 22%, 24%, 32%, 35%, 37%
  • You can use TurboTax Capital Gains Calculator to easily figure out how much taxes to set aside.

So how much money you need to save in your cochinito for your taxes depends on things like: How long you’ve held your investment, whether it’s considered a Long-Term or Short-Term investment, and the tax rate for or your tax bracket, pero the calculator can help simplify the process for you and give you a more accurate number!

  • Why do I have to pay taxes on a decentralized currency? 
    • In 2014 the IRS issued guidance and explained that virtual currency should be treated as property instead of currency for Federal income tax purposes and applied tax principles applicable to transactions involving property to virtual currency.

Pues this means for the purposes of taxes, if your tía or abuelita are participating in the Crypto game, make sure they know the IRS views cryptocurrencies like property and don’t treat them like regular dinerito.


’Ta useful, no?


Rules: The code is redeemable at Turbotax.com and good for one free 2020 federal + state tax return preparation and e-file for any TurboTax Online Product (including TurboTax Live, TurboTax Live Full Service and optional add-on services). This code can only be redeemed once and is only valid through the 2020 tax season. Code expires October 15, 2021. Codes may not be redeemed for cash and are not for resale. Lost or stolen cards will not be replaced. Terms and conditions subject to change without notice. *#1 Best-selling is based on aggregate sales data for all tax year 2020 TurboTax Products. 2021 Intuit Inc. All rights reserved. Intuit, the intuit logo, and TurboTax, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries.



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