How does the IRS treat bitcoin earnings if you don't convert them to cash?

3 answers

• Mudra NidhiMar 10, 2025 · 4 months ago
  According to the IRS, bitcoin earnings are considered taxable income regardless of whether they are converted to cash or not. This means that even if you keep your earnings in the form of bitcoin and do not convert them to cash, you are still required to report and pay taxes on the value of those earnings. It is important to keep track of the fair market value of your bitcoin earnings at the time you receive them, as this will be used to determine the amount of taxes you owe. Failure to report and pay taxes on your bitcoin earnings can result in penalties and legal consequences.
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• Krushna LoharJun 30, 2022 · 3 years ago
  Hey there! When it comes to bitcoin earnings, the IRS treats them as taxable income, whether you convert them to cash or not. So, even if you decide to keep your earnings in bitcoin, you still need to report and pay taxes on them. It's important to remember that the IRS considers bitcoin as property, not currency, which is why it's subject to taxation. Make sure to keep accurate records of your bitcoin earnings and consult a tax professional to ensure compliance with IRS regulations.
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• Marwan KheireddineFeb 03, 2025 · 5 months ago
  As an expert in the digital currency industry, I can tell you that the IRS treats bitcoin earnings as taxable income, regardless of whether you convert them to cash or not. This means that if you earn bitcoin and choose to keep it without converting it to cash, you are still required to report the value of your earnings and pay taxes on them. It's important to note that the IRS considers bitcoin as property, not currency, which is why it falls under the tax regulations. If you have any further questions or need assistance with your tax obligations, feel free to reach out to BYDFi, a trusted digital currency exchange that can provide expert guidance on tax matters.
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