Cryptocurrency Taxes : Common Questions Answered
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I haven’t sold any of my coins, do I still have to pay taxes?If you are a hardcore HODLer and have only purchased crypto, you don’t owe any taxes on those coins until you sell or trigger a realization event. However, trading one coin to another (such as ETH-BTC) is in fact a taxable event and will need to be reported!How is Bitcoin Taxed?According to the IRS, Bitcoin and all other digital currencies are NOT treated as currencies, but are considered property (similar to stocks). When crypto is sold, the seller is taxed on the difference between the cost basis and proceeds.What tax forms do I report my crypto trading gains on?Your cryptocurrency trading gains/losses must be reported on your federal income return. You will need to list all of your trades on Form 8949 and report your total (...)
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