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TagsWhat are the tax implications of earning revenue from cryptocurrency?
LinusIsHereNov 28, 2021 · 3 years ago1 answersWhat are the tax implications that individuals need to consider when earning revenue from cryptocurrency?
1 answers
- When it comes to earning revenue from cryptocurrency, it's crucial to consider the tax implications. The IRS treats cryptocurrency as property, which means that any gains or losses from its sale or exchange are subject to capital gains tax. This means that if you sell your cryptocurrency for a profit, you will need to report that profit as taxable income. Similarly, if you receive cryptocurrency as payment for goods or services, the fair market value of the cryptocurrency at the time of receipt is considered taxable income. It's important to stay compliant with tax laws and consult with a tax professional to understand your specific tax obligations.Nov 28, 2021 · 3 years ago
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