Cryptocurrency is taxed based on its classification as property by the IRS, similar to stocks or real estate. Tax obligations arise when you sell, trade, spend, or earn crypto, and understanding the rules can help you stay compliant.
Key Points
Taxable Events: Selling crypto, trading one type for another, spending it on goods or services, or earning it through mining or staking.
Non-Taxable Events: Simply buying and holding crypto or transferring it between your wallets.
Recordkeeping: Maintaining accurate records of transactions, including cost basis and fair market values, is crucial.
For a detailed guide, visit Shiraverse: How Cryptocurrency is Taxed.
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