Video: Tax Tips to Help Investors Save Money
CPA and TurboTax tax expert Lisa Greene-Lewis offers advice to help you navigate the investment income and losses on your taxes.
The One Big Beautiful Bill that passed includes permanently extending tax cuts from the Tax Cuts and Jobs Act, including increasing the cap on the amount of state and local or sales tax and property tax (SALT) that you can deduct, makes cuts to energy credits passed under the Inflation Reduction Act, makes changes to taxes on tips and overtime for certain workers, reforms Medicaid, increases the Debt ceiling, and reforms Pell Grants and student loans. Updates to this article are in process. Check our One Big Beautiful Bill article for more information.
Transcript:
Tracy Byrnes: Lots of people getting involved in the stock market these days and the cryptocurrency market. So what do you need to know? And how do you save money? Lisa Greene-Lewis, TurboTax expert and CPA, is here with us right now. Look, the world is open now. Lots of people are trading. And I don't think enough people understand the tax implications of it. So where do we begin with this?
Lisa Greene-Lewis: Well, first thing you should [know] with crypto, it's treated just like stock. And I always think about how you use it is how it's going to be taxed. So if you're holding it as an investment, and you sell it, you're going to have capital gains and losses.
Now, people are paying people in crypto. So if you're being paid in it, it's going to be like a wage, or you could be paid as a contractor. So that's going to show up on -- if you're paid as a contractor, what you're paid in crypto, it's going to show up on a 1099. And then with that, if you're paid in it, you're also going to have another transaction when you sell the crypto. And then it's going to be looked at as an investment.