How does tax reporting work for cryptocurrency according to recent news?

1 answers

• Dec 26, 2021 · 3 years ago
  Tax reporting for cryptocurrency has been a hot topic in recent news. According to the latest information, the IRS treats cryptocurrency as property, which means that any gains or losses are subject to capital gains tax. This applies to both individuals and businesses that engage in cryptocurrency transactions. If you buy or sell cryptocurrency, you'll need to report the transaction on your tax return and calculate the capital gain or loss. It's important to keep detailed records of your transactions, including the date, amount, and fair market value of the cryptocurrency involved. Failing to report your cryptocurrency transactions accurately can result in penalties or even legal consequences. It's always a good idea to consult with a tax professional to ensure that you're meeting all the necessary tax reporting requirements.
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