What are the tax implications for cryptocurrency traders when it comes to filing IRS Form 8948?

1 answers

• Dec 19, 2021 · 3 years ago
  When it comes to filing IRS Form 8948, cryptocurrency traders should be aware of the tax implications involved. It's important to report all your cryptocurrency transactions accurately, including buying, selling, and exchanging. Additionally, any income generated from mining or staking should also be reported. Keep detailed records of each transaction, including dates, amounts, and values. Remember, the IRS considers cryptocurrency as property, so you'll need to calculate your gains or losses based on the fair market value at the time of each transaction. If you've experienced losses, you can use them to offset your gains and potentially reduce your tax liability. However, it's always a good idea to consult with a tax professional or use tax software to ensure you're meeting all the necessary requirements and reporting accurately.
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