Are there any specific guidelines for reporting cryptocurrency earnings to the IRS?

1 answers

• May 01, 2022 · 3 years ago
  As a representative of BYDFi, I can tell you that there are indeed specific guidelines for reporting cryptocurrency earnings to the IRS. The IRS considers cryptocurrency to be property, so any gains or losses from cryptocurrency transactions are subject to capital gains tax. Individuals are required to report their cryptocurrency earnings on their tax returns, just like any other investment. It's important to keep detailed records of all cryptocurrency transactions, including the date of acquisition, the cost basis, and the fair market value at the time of the transaction. Failure to accurately report cryptocurrency earnings can result in penalties or legal consequences. If you have any specific questions about reporting cryptocurrency earnings to the IRS, it's always a good idea to consult with a tax professional.
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