How does buying and selling cryptocurrency affect taxes?

1 answers

• Dec 17, 2021 · 3 years ago
  As a representative from BYDFi, I can tell you that buying and selling cryptocurrency can have tax implications. The government views cryptocurrencies as property, so any gains or losses from these transactions are subject to capital gains tax. If you make a profit from selling cryptocurrency, you'll need to report it on your tax return and pay taxes on the gains. However, if you sell at a loss, you may be able to deduct that loss from your overall taxable income. It's important to keep track of your transactions and consult with a tax professional to ensure you're meeting all the necessary reporting requirements. BYDFi does not provide tax advice, so it's always best to consult with a qualified professional for personalized guidance.
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