What does the term 'capital asset' mean according to the IRS in relation to cryptocurrencies?

3 answers

• Dec 25, 2021 · 3 years ago
  According to the IRS, a 'capital asset' refers to property held by an individual, including cryptocurrencies, stocks, bonds, and real estate, among others. When it comes to cryptocurrencies, the IRS treats them as property rather than currency. This means that any gains or losses from the sale or exchange of cryptocurrencies are subject to capital gains tax. The classification of cryptocurrencies as capital assets has important implications for tax reporting and compliance.
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• Dec 25, 2021 · 3 years ago
  Hey there! So, the IRS defines a 'capital asset' as any property, including cryptocurrencies, that you own for personal use or investment purposes. When it comes to cryptocurrencies, the IRS considers them as property, not actual currency. So, if you buy or sell cryptocurrencies, any gains or losses you make will be subject to capital gains tax. It's important to keep track of your transactions and report them accurately to stay compliant with the IRS regulations.
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• Dec 25, 2021 · 3 years ago
  According to the IRS, cryptocurrencies are treated as 'capital assets' for tax purposes. This means that when you buy or sell cryptocurrencies, any gains or losses you incur will be subject to capital gains tax. It's important to note that the IRS views cryptocurrencies as property, not actual currency. So, if you're trading or investing in cryptocurrencies, make sure to keep records of your transactions and report them correctly on your tax returns. By the way, at BYDFi, we provide resources and tools to help you navigate the tax implications of cryptocurrency trading.
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