According to a recent survey, cryptocurrency investors in the United States who have sold their Bitcoin (BTC), have lost $1.7 billion. However, those who didn’t sell are sitting on $5.7 billion unrealized losses.
$718 Lost Per Person
A recent survey carried out by credit company Credit Karma among 1,009 American Bitcoin investors reveals that those of them who sold their holdings have lost a total of $1.7 billion as a result of the prolonged bear market of 2018.
This gives a rough average of about $718 per person. However, it’s also worth noting that those who didn’t sell but are still ‘hodling’ are sitting on unrealized losses of $5.7 billion.
The numbers don’t come as a surprise, given the tumbling prices and the overall declining state of the cryptocurrency market.
Many Won’t Report Losses
The survey also revealed what are the intentions of bitcoin investors when it comes to tax reporting.
Some 53 percent of them plan to report their bitcoin losses or gains on their taxes. 19 percent of investors are yet to make a decision on this, while an alarming 35 percent said they don’t plan to report at all.
What is more, 58 percent of bitcoin investors weren’t even aware that they’d be able to claim a tax deduction based on their realized losses.
35 percent of those who plan not to report seem to be under the false impression that they aren’t required to report their bitcoin investment losses or gains.
In March 2018, the Internal Revenue Service (IRS) of the US, issued a formal notice, reminding taxpayers that any income from virtual currency transactions has to be reported on their income tax returns.
The notice also outlined that digital currencies are taxed just like any other property or transaction. There’s also guidance that taxpayers can use.
Do you plan on reporting your cryptocurrency gains or losses? Do let us know down below!
Images credit to Pixabay; CoinMarketCap