What are the IRS rules for reporting long-term capital gains from cryptocurrency?

1 answers

• Jan 06, 2022 · 3 years ago
  According to the IRS rules, reporting long-term capital gains from cryptocurrency is mandatory. The IRS treats cryptocurrency as property, and any gains from the sale or exchange of cryptocurrency are subject to capital gains tax. To report your long-term capital gains, you will need to fill out Form 8949 and Schedule D of your tax return. On Form 8949, you will need to provide details of each cryptocurrency transaction, including the date of acquisition, the date of sale or exchange, the cost basis, and the fair market value at the time of the transaction. It's important to accurately report your gains to avoid any potential penalties or audits from the IRS. If you have any doubts or questions about reporting your long-term capital gains from cryptocurrency, it's advisable to consult with a tax professional who specializes in cryptocurrency taxation.
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