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2023 Tax Changes - Part 4

Video Transcript

 Welcome back to Money Burst, this is our fourth and final video in our four-part series discussing some changes coming to the 2023 tax season. Now if you're catching this video, either you've stuck with me the whole time, so I appreciate you watching each of the videos, or you just caught this one randomly out of order. Which means you got three more videos to go back and catch up on for the series and kind of figure out what's going on this tax season.
But for this final video of the series, I want to talk about the fact that the IRS is coming for that crypto. So, this is not something new, it's not a new policy or law they put into place, it's just that the IRS has been really understaffed for several years now. In 2022, they said that they're going to be making more of an effort to track your crypto activity, this includes those NFT’s as well. If you're buying some of those, you know really colorful drawings out there, you might owe some taxes. So, when you buy and sell crypto whether it's cryptocurrencies like Bitcoin, Ethereum or things like that or if it's an NFT, you could incur or trigger what's called a taxable event.
Basically, meaning that you owe capital gains tax and this is if you're basically selling one of these items for more than you paid for them. Now the good news is, like I guess it's kind of good news, is that if you lost money in this transaction, you might be able to offset some taxes that you owe in other areas, which would be good.
But if you made money, more than likely you're owe some type of tax bill on these items. Now this has always been the case, you're always supposed to be doing, this but because the IRS really didn't have the staff, they're going to track down everyone. You might have gotten away with it.
So, the thing to keep in mind this tax season is, if you had some type of gain on your sale of cryptocurrency or NFT, make sure you do report that to the IRS. Because they are going to be looking for these things.