What are the tax implications of cryptocurrency investments according to the IRS?

1 answers

• Jan 08, 2022 · 3 years ago
  According to the IRS, investing in cryptocurrencies comes with tax implications that you need to be aware of. Cryptocurrencies are treated as property, not currency, for tax purposes. This means that any gains or losses you make from buying, selling, or trading cryptocurrencies are subject to capital gains tax. If you sell your cryptocurrencies for a profit, you'll need to report the gain on your tax return and pay taxes on it. However, if you sell at a loss, you may be able to deduct that loss from your taxable income. It's important to keep detailed records of all your cryptocurrency transactions, including the date of acquisition, purchase price, and sale price. By following the IRS guidelines and accurately reporting your cryptocurrency investments, you can avoid any potential issues with the taxman.
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