California Tribunal Zeros Out Tax Liability for Crypto Sales (1)

A California man has no state income tax liability after the Office of Tax Appeals held he provided proof that he didn’t earn as much from cryptocurrency sales as the state estimated.

Joshua Gonzalez didn’t file a 2021 tax return, but information on third-party returns showed that he earned wages of about $100,000 and proceeds from broker and barter exchanges of crypto totaling just over $70,000. Once he provided evidence that the correct amount of his taxable gain from crypto sales was only $1,191.46, he proved that he had no tax liability, but still owes penalties and interest, the panel ...