How does the issuance of Form 1099-K for 2021 differ for taxpayers involved in cryptocurrency transactions?

1 answers

• Nov 23, 2021 · 3 years ago
  When it comes to taxpayers involved in cryptocurrency transactions, the issuance of Form 1099-K for 2021 differs from other types of transactions. The IRS treats cryptocurrency as property, not currency, which means that any gains or losses from cryptocurrency transactions are treated as capital gains or losses. Additionally, cryptocurrency exchanges are now required to report certain transactions to the IRS if they meet specific thresholds. If a taxpayer's cryptocurrency transactions on a particular exchange exceed these thresholds, they may receive a Form 1099-K from the exchange. It's important for taxpayers involved in cryptocurrency transactions to keep detailed records of their transactions, including the date, amount, and purpose of each transaction, as this information may be necessary for tax reporting purposes.
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