Today we are going to talk about the IRS cryptocurrency tax regulations in the United States. The latest regulations were released in July 2024, have been in the works for some time, and will take effect in 2025, with a one-year transition period.
The IRS treats cryptocurrency as property, not currency. Therefore, any transactions involving cryptocurrency (such as buying, selling, or exchanging) may result in capital gains or losses.
Reporting requirements: Starting in 2023, all taxpayers must answer whether they engaged in any activities related to digital assets on their federal income tax returns, including receiving, selling, exchanging, etc.