What are the IRS guidelines for classifying cryptocurrency?

3 answers

• Dec 22, 2021 · 3 years ago
  According to the IRS, cryptocurrency is treated as property for tax purposes. This means that the general tax principles that apply to property transactions also apply to cryptocurrency transactions. When determining the classification of cryptocurrency, the IRS considers factors such as the intent of the taxpayer, the frequency and substantiality of the transactions, and the nature of the taxpayer's trade or business.
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• Dec 22, 2021 · 3 years ago
  The IRS guidelines for classifying cryptocurrency are based on the principle that cryptocurrency is considered property. This means that any gains or losses from cryptocurrency transactions are subject to capital gains tax. The IRS looks at various factors to determine the classification, including the taxpayer's intent, the holding period, and the frequency and substantiality of the transactions.
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• Dec 22, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, the IRS guidelines for classifying cryptocurrency are similar to those for other types of property. The IRS considers factors such as the taxpayer's intent, the holding period, and the frequency and substantiality of the transactions. It's important for taxpayers to keep accurate records of their cryptocurrency transactions to comply with the IRS guidelines.
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