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How can I calculate my tax liability for cryptocurrency earnings in Israel?

avatarBruus RandrupDec 26, 2021 · 3 years ago1 answers

I am a cryptocurrency investor in Israel and I want to know how to calculate my tax liability for my earnings. Can you provide me with some guidance on how to calculate the taxes I owe on my cryptocurrency earnings in Israel?

How can I calculate my tax liability for cryptocurrency earnings in Israel?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    Calculating tax liability for cryptocurrency earnings in Israel can be a daunting task, but fear not! I'm here to help you out. First, you need to determine whether your cryptocurrency earnings are considered capital gains or ordinary income. If you're a long-term investor, it's likely that your earnings will be treated as capital gains. To calculate your tax liability, you'll need to know the cost basis of your cryptocurrencies, which is the original purchase price. Keep track of the dates of acquisition and sale, as they will be important for calculating your capital gains. Subtract the cost basis from the selling price to get your capital gains. The tax rate for capital gains in Israel depends on your income level. If you're feeling overwhelmed, it's always a good idea to seek advice from a tax professional who can guide you through the process and ensure compliance with tax laws.