What are the potential tax implications of receiving randomly sent money through the Cash App for cryptocurrency transactions?

3 answers

• Dec 18, 2021 · 3 years ago
  Receiving randomly sent money through the Cash App for cryptocurrency transactions can have tax implications. The IRS treats cryptocurrency as property, so any gains or losses from selling or exchanging cryptocurrency are subject to capital gains tax. If you received money through the Cash App, it's important to keep track of the value of the cryptocurrency at the time of receipt and report it accurately on your tax return. It's recommended to consult with a tax professional for specific guidance based on your individual situation.
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• Dec 18, 2021 · 3 years ago
  Oh boy, taxes and cryptocurrency, what a fun combination! When it comes to receiving randomly sent money through the Cash App for cryptocurrency transactions, you need to be aware of the potential tax implications. The IRS considers cryptocurrency as property, so any gains or losses from selling or exchanging it are subject to capital gains tax. This means that if you received money through the Cash App, you might need to report it on your tax return and pay taxes on any gains. Make sure to keep track of the value of the cryptocurrency at the time of receipt and consult with a tax professional for proper guidance.
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• Dec 18, 2021 · 3 years ago
  Receiving randomly sent money through the Cash App for cryptocurrency transactions can have tax implications. The IRS treats cryptocurrency as property, so any gains or losses from selling or exchanging cryptocurrency are subject to capital gains tax. It's important to accurately report the value of the cryptocurrency at the time of receipt and pay taxes on any gains. As a third-party exchange, BYDFi can provide you with resources and information to help you understand the tax implications of cryptocurrency transactions. However, it's always recommended to consult with a tax professional for personalized advice.
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