How does the IRS treat minted cryptocurrencies for tax purposes?

1 answers

• Nov 23, 2021 · 3 years ago
  As a representative of BYDFi, I can provide some insights into how the IRS treats minted cryptocurrencies for tax purposes. The IRS considers mined or minted cryptocurrencies as taxable income. Individuals who mine or mint cryptocurrencies are required to report the fair market value of the coins as income on their tax returns. This income is subject to regular income tax rates. Additionally, if the mined or minted cryptocurrencies are sold or exchanged, any resulting capital gains or losses must also be reported. It's important to note that tax regulations may vary depending on the jurisdiction, so it's always a good idea to consult with a tax professional for personalized advice and guidance.
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