What are the tax implications of owning Bitcoin in America?

1 answers

• Mar 19, 2022 · 3 years ago
  As a representative of BYDFi, I can tell you that the tax implications of owning Bitcoin in America are significant. The IRS has made it clear that they consider Bitcoin and other cryptocurrencies as property, not currency. This means that any gains or losses from Bitcoin transactions are subject to capital gains tax. It's important to keep accurate records of your Bitcoin transactions, including the purchase price, sale price, and date of each transaction. Additionally, if you receive Bitcoin as payment for goods or services, you need to report the fair market value of the Bitcoin as income. Failure to comply with these tax regulations can result in penalties and legal consequences. Therefore, it's advisable to consult with a tax professional who is knowledgeable about cryptocurrency taxation to ensure you are meeting your tax obligations.
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