What are the tax implications of reporting NR4 income from digital currency trading on US tax return?

1 answers

• Mar 22, 2022 · 3 years ago
  When it comes to reporting NR4 income from digital currency trading on your US tax return, it's important to understand the tax implications. Digital currency trading income is subject to taxation in the US, and it's crucial to accurately report your income to avoid any potential penalties or legal issues. The IRS treats digital currency as property, and any gains or losses from trading digital currency are considered capital gains or losses. To report your NR4 income from digital currency trading, you'll need to fill out Form 8949 and Schedule D. It's recommended to consult with a tax professional who has experience in cryptocurrency taxation to ensure you're following the correct procedures and maximizing your tax benefits.
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