What are the tax implications of investing in crypto according to the IRS?

1 answers

• Mar 07, 2022 · 3 years ago
  According to the IRS, investing in cryptocurrency has tax implications that you need to be aware of. The IRS treats cryptocurrency as property, which means that any gains or losses from buying, selling, or exchanging crypto are subject to capital gains tax. If you sell your crypto for a profit, you'll need to report that income on your tax return. However, if you sell your crypto at a loss, you may be able to offset other capital gains or deduct the loss from your overall taxable income. It's important to keep detailed records of your crypto transactions and consult with a tax professional to ensure you are meeting your tax obligations and taking advantage of any potential deductions or credits.
  704352