What are the IRS reporting requirements for cryptocurrency transactions on Square?

3 answers

• Dec 27, 2021 · 3 years ago
  Sure! When it comes to cryptocurrency transactions on Square, the IRS requires that you report any gains or losses from these transactions on your tax return. This means that if you sell or exchange cryptocurrency on Square and make a profit, you need to report that profit as taxable income. On the other hand, if you sell or exchange cryptocurrency on Square and incur a loss, you can use that loss to offset other capital gains. Square does not handle the reporting for you, so it's your responsibility to accurately report your cryptocurrency transactions on your tax return.
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• Dec 27, 2021 · 3 years ago
  Reporting cryptocurrency transactions to the IRS can be a bit of a headache, but it's an important part of staying compliant. When you use Square for cryptocurrency transactions, you'll need to keep track of the date, amount, and value of each transaction. This information will be used to calculate your gains or losses. It's a good idea to use a dedicated cryptocurrency tax software or consult with a tax professional to ensure that you're accurately reporting your transactions and taking advantage of any available deductions or credits.
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• Dec 27, 2021 · 3 years ago
  As an expert in the field, I can tell you that BYDFi, a leading cryptocurrency exchange, has a seamless integration with Square that makes it easy for users to report their cryptocurrency transactions to the IRS. BYDFi provides a comprehensive transaction history report that includes all the necessary information required by the IRS. This report can be easily imported into tax software or provided to your tax professional. With BYDFi's integration, you can save time and ensure accurate reporting of your cryptocurrency transactions on Square.
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