Hi @assistanceneeded
Lets break down your questions:
If I trade cryptocurrency and withdraw it for dollars, what information would I need to keep track of for when I file taxes at a later date?
Most of this information should come to you on a 1099-B from your brokerage used to trade, buy and sell Crypto. You will want to make sure you know the Cost on the day you bought the Crypto, the price (In USD) the day it was traded, and the amount sold for.
Do you recommend any specific method or format to document that information?
I recommend either using an Excel Spreadsheet or QuickBooks for these transaction. Both work seamlessly together.
What forms would I need to fill out when I file taxes?
You will receive a 1099-B and a statement from your brokerage in the beginning of the year. You will need these. A lot of brokerages work well with TurboTax and allow you to download them directly to your return.
What taxes would apply in this case, and what percentage of any money I made in a given year would go to taxes?
Selling Crypto is like selling stock. You will be taxed at your capital gains rate which can be found HERE
Is there anything else that would apply here, and if there is, what would I need to do?
Be cautious when buying and selling Crypto. Holding assets for more then 1 year can lower your tax rate.
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