What are the reporting requirements for cash app users who engage in cryptocurrency trading?

3 answers

• Dec 16, 2021 · 3 years ago
  As a cash app user who engages in cryptocurrency trading, you need to be aware of the reporting requirements set by the IRS. Any gains or losses from cryptocurrency transactions are subject to taxation. You are required to report your cryptocurrency transactions on your tax return, including the buying, selling, and exchanging of cryptocurrencies. Failure to report these transactions can result in penalties and legal consequences.
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• Dec 16, 2021 · 3 years ago
  When it comes to reporting requirements for cash app users involved in cryptocurrency trading, it's important to keep track of your transactions. The IRS considers cryptocurrencies as property, so any gains or losses are treated similarly to stocks or real estate. Make sure to keep detailed records of your transactions, including the date, amount, and purpose of each transaction. This will help you accurately report your cryptocurrency activities and fulfill your tax obligations.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, advises cash app users who engage in cryptocurrency trading to comply with the reporting requirements set by the IRS. It is crucial to accurately report your cryptocurrency transactions to avoid any legal issues. Keep in mind that the IRS has been increasing its focus on cryptocurrency taxation, so staying compliant is essential. Consult with a tax professional if you have any specific questions or concerns regarding your reporting obligations.
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