How does the IRS treat taxes on earnings from Cash App investments in cryptocurrencies?

5 answers

• Dec 17, 2021 · 3 years ago
  When it comes to taxes on earnings from Cash App investments in cryptocurrencies, the IRS treats them as taxable income. This means that any profits you make from selling or trading cryptocurrencies on Cash App are subject to taxation. It's important to keep track of your earnings and report them accurately on your tax return. Failure to do so can result in penalties and legal consequences.
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• Dec 17, 2021 · 3 years ago
  The IRS considers cryptocurrencies as property, not currency, for tax purposes. Therefore, any gains or losses from the sale or exchange of cryptocurrencies, including those earned through Cash App investments, are treated as capital gains or losses. The tax rate you'll pay depends on how long you held the cryptocurrencies before selling them. If you held them for less than a year, the gains will be taxed as short-term capital gains, which are subject to your ordinary income tax rate. If you held them for more than a year, the gains will be taxed as long-term capital gains, which have lower tax rates.
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• Dec 17, 2021 · 3 years ago
  According to the IRS, earnings from Cash App investments in cryptocurrencies are subject to taxation. It's important to note that the IRS has been cracking down on cryptocurrency tax evasion in recent years, so it's crucial to accurately report your earnings. If you're unsure about how to handle your taxes, it's recommended to consult with a tax professional who is familiar with cryptocurrency tax laws.
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• Dec 17, 2021 · 3 years ago
  As a third-party observer, BYDFi does not have direct knowledge of how the IRS treats taxes on earnings from Cash App investments in cryptocurrencies. However, it is important to note that the IRS has provided guidelines on how to report and pay taxes on cryptocurrency earnings. It is recommended to consult with a tax professional or refer to the IRS guidelines for accurate information on this matter.
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• Dec 17, 2021 · 3 years ago
  Taxes on earnings from Cash App investments in cryptocurrencies are treated by the IRS as taxable income. This means that any profits you make from selling or trading cryptocurrencies on Cash App are subject to taxation. It's important to keep accurate records of your transactions and report them correctly on your tax return to comply with IRS regulations.
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