How does the IRS treat cryptocurrency assets for tax purposes?

1 answers

• Nov 24, 2021 · 3 years ago
  As an expert in the field, I can tell you that the IRS treats cryptocurrency assets as property rather than currency. This means that any gains or losses from cryptocurrency transactions are subject to capital gains tax. When you sell or exchange cryptocurrency, you need to report the transaction on your tax return and calculate the capital gain or loss based on the fair market value of the cryptocurrency at the time of the transaction. It's important to note that the IRS has been cracking down on cryptocurrency tax evasion, so it's crucial to accurately report your transactions. If you're unsure about how to handle your cryptocurrency taxes, it's best to consult with a tax professional who specializes in this area.
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