How does paying taxes on crypto work?

1 answers

• Dec 29, 2021 · 3 years ago
  When it comes to paying taxes on crypto, it's important to understand that the IRS considers cryptocurrencies as property. This means that any gains or losses from your crypto transactions are subject to capital gains tax. If you sell or exchange your cryptocurrencies, you'll need to report the transaction and calculate your capital gains or losses. It's crucial to keep a record of all your transactions and the prices at which you bought and sold your cryptocurrencies. Additionally, any income you receive in the form of cryptocurrency, such as mining rewards or airdrops, needs to be reported. To ensure you're complying with tax regulations, it's advisable to seek guidance from a tax professional who is knowledgeable about cryptocurrency.
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