What are the specific rules and regulations regarding cryptocurrency taxation by the IRS?

3 answers

• Nov 28, 2021 · 3 years ago
  Sure! The IRS treats cryptocurrencies as property, which means that they are subject to capital gains tax. This means that any profits made from selling or trading cryptocurrencies are taxable. The tax rate depends on how long you held the cryptocurrency before selling it. If you held it for less than a year, it is considered a short-term capital gain and is taxed at your ordinary income tax rate. If you held it for more than a year, it is considered a long-term capital gain and is taxed at a lower rate. It's important to keep track of your cryptocurrency transactions and report them accurately on your tax return.
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• Nov 28, 2021 · 3 years ago
  Well, when it comes to cryptocurrency taxation, the IRS has made it clear that they are serious about enforcing tax compliance. They have been cracking down on cryptocurrency tax evasion and have even issued warning letters to thousands of cryptocurrency holders. So, if you're involved in cryptocurrency trading, it's important to understand and comply with the IRS rules and regulations to avoid any potential penalties or legal issues.
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• Nov 28, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi does not provide tax advice. However, it is important to note that the IRS requires individuals to report their cryptocurrency transactions and pay taxes on any gains. It's always a good idea to consult with a tax professional or accountant who specializes in cryptocurrency taxation to ensure that you are in compliance with the IRS rules and regulations.
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