Textbook Tax

Cryptocurrency transactions, while anonymous and decentralized, are subject to regulation by the IRS for all US taxpayers. Because of this, no matter your level of knowledge or complexity of dealings, if you have or plan to participate in any activity involving cryptocurrency, please continue reading to learn about the common taxable and non-taxable cryptocurrency transactions. By understanding how the United States taxes each crypto-related transaction, you will be a better crypto investor and trader and have a better understanding of your tax bill come tax season. Let’s start discussing the taxable and nontaxable cryptocurrency transactions based on US regulations. Crypto Tax: Taxable Transactions The following crypto transactions trigger capital gains or losses and may result in capital gain tax owed based on your capital asset activity. 1. Sell cryptocurrency for real currency When you sell cryptocurrency for USD, you have made a taxable crypto transaction. In other words, if you e...