Short-term capital losses for bitcoin in the first month of 2019 filing season spiked to 521% compared to the same month last year. In addition, there was also an upsurge in the number of people reporting their short-term capital losses. The average short-term BTC losses have increased to 322% or $3,405 since tax season in 2018.
Only A Hundred Reported Gains
In a report by Credit Karma Tax, it showed that only a hundred individuals or 0.0004% of the 250 thousand cryptocurrency holders reported their gains to the Internal Revenue Service. And every year, 33% more early filers are reporting their short-term gains. This is despite the fact that short-term bitcoin gains had an average net decrease of 7% during the first month.
So far, the real winners this tax season are the investors with long-term gains. Most of the early filers have reported $15,352 average gain, which is equivalent to 103% from the previous year.
However, the issue here is, even though there has been an increasing number of people claiming gains and losses from the years 2017 and 2018, only very few of the investors are paying taxes on their cryptocurrency assets.
In a survey conducted by Lendedu, it revealed that 35.87% out of a thousand residents in the U.S., does not have any plan on reporting their gains or losses on their tax return. Furthermore, according to Credit Karma Tax, this number would only go higher in the future. Based on the result of their own survey, 47% of the investors from the U.S are also against the idea of reporting any of their crypto gains or losses.