Is there a Texas Cryptocurrency Tax?

Whether it’s tax season or not, the Texas cryptocurrency tax is on any digital investor’s mind. Is there a Texas cryptocurrency tax? How much is it? How does that impact my investment strategy? We aim to give a general overview of all of those questions and more; read on for a discussion of recording your cryptocurrency investments in Texas.

Understanding the Texas Cryptocurrency Tax

Firstly, it’s important to mention that Texas currently does not have any unique specifications when it comes to cryptocurrency. All cryptocurrency transactions, trades, and gains are subject to IRS guidance, a subject that will be addressed later in this section. The use of the blockchain for financial purposes is relatively new; if you’re interested in learning more about cryptocurrency’s impact and trajectory, check out our blog post on the subject. Cryptocurrency is just arriving to a level of popularity and longevity that may suggest a need for government intervention and legislation. Keep in mind that you may need to consult experts such as attorneys, accountants, and financial advisors to navigate the considerable gray area and interpretations with how cryptocurrency is taxed.

Digital currency and other monetized components of the blockchain find themselves in an interesting position as far as taxes are concerned. NFTs, which share many qualities with cryptocurrency, may be treated as “collectibles,” a term which contains items like art and other objects up for trade. Due to the non-fungible nature of NFTs and the way in which they’re traded, they occupy a similar space as legacy automobiles, fine art, and other highly-valued objects do; it’s natural that they would be taxed as such.

Cryptocurrencies like Litecoin and Bitcoin, on the other hand, tend to be treated similarly to an investment as opposed to an actual currency. This means that they are subject to a capital gains tax, which is to be paid when an investor sells an investment and realizes a financial gain. If you were worried about the Texas cryptocurrency tax, this information might make you feel more comfortable investing into cryptocurrency. Texas’s uniquely low tax burden in other areas means that using the gains you realize through crypto investing is more beneficial than elsewhere in the country.

What to Do After Learning About the Texas Cryptocurrency Tax Approach

After learning that Texas does not impose any unique rules regarding cryptocurrency taxation, you may now be asking yourself what to do next. Luckily, Texas is quickly becoming a hub for cryptocurrency and other cutting-edge technologies. There are plenty of things to do: turn your cash to crypto, spend your crypto, and even join groups and attend events to educate yourself more about cryptocurrency.

Discover More About Cryptocurrency and its History

Did you know that cryptocurrency got its start with Bitcoin in 2009? Bitcoin remains today as the largest and most popular cryptocurrency on the market, and has been the model for many similar currencies that have been started in the past 13 years. Since its creation, Bitcoin has exploded in both value and popularity. The financial gains made by its initial investors, as well as the novelty of the currency is what kickstarted the continued use of blockchain technology, and has shaped much of what influences crypto culture today.

Learn From Like-Minded People

Before beginning your crypto journey, we encourage you to educate yourself more on the intricacies of crypto and the blockchain as a whole. To get an idea of what is available, check out this article about Austin Crypto Events. The groups and events located in this post are all welcoming to beginners, and surrounding yourself with individuals passionate about the subject can assist you in making more informed decisions with your cryptocurrency wallet. Additionally, these events are meant to be fun! Get out there and learn more about the world’s newest financial developments; it could help take control of your financial future.

Store Your Crypto

Are you concerned about integrating cryptocurrency into your everyday life? Integrating your finances can seem like a monumental task as far as the blockchain is concerned, but rest assured: it can be done. Many banks ban their users from utilizing their credit cards or other services to engage with the blockchain or purchase cryptocurrencies. This shouldn’t stop you, however. Many banks such as USAA, Simple, Ally, and more, still allow their users to engage with their cryptocurrency investments.

Turn Cash to Crypto, and Crypto to Cash

Pelicoin is dedicated to providing secure and easy ways to turn your cryptocurrency to cash and vice versa. To do this, we have placed cryptocurrency ATMs across Texas and the larger Gulf South to make accessing your digital wallet easier than ever. Our ATMs are primarily placed in locations that are open 24/7 for access around the clock. From these ATMs, you can buy and sell crypto, manage or create your digital wallet, and do so in an easily accessible, safe environment.

Spend Your Crypto

Did you know that you can spend your cryptocurrency at in-person businesses across Texas? Many businesses across the state accept cryptocurrency, embracing the modern economy. We’ve collected a list of Austin businesses that accept Bitcoin so you can try out your new investments in person. If you don’t live in or near Austin, don’t fret! There are plenty of national chains such as Starbucks and Home Depot that have begun to accept cryptocurrency as payment.

Take Advantage of the Texas Cryptocurrency Tax Environment With Pelicoin

Texas’s current relatively laissez-faire stance on cryptocurrency and other blockchain technologies, combined with its growing place as a hub for technology, creates a rich environment for budding cryptocurrency investors. Take advantage of the state’s unique place in the crypto movement with Pelicoin. Pelicoin has ATMs across Texas that empower investors to buy, sell, and manage their cryptocurrency on the fly, in a safe and convenient environment. If you want to learn more about engaging with some of the world’s fastest-growing currencies and investment opportunities, visit our website. If you want to learn more about a range of topics regarding cryptocurrency and its rapid rise in popularity, check out our regularly-updated blogs page.