Cryptocurrency holders can spend their tokens with merchants that choose to accept crypto. But the IRS views spending your crypto as selling it. That’s because the government deals in dollars and cents, so it considers your transaction as an exchange of your crypto for dollars—much like afore...
A taxable event is any transaction that may result in taxes being owed to a federal, state, or local government. Taxable events include receiving a paycheck or shopping.
You only pay crypto tax once you realize gains. Treat it like a stock. You will not be charged a tax for as long as you are holding on to that asset. Once you sell your crypto assets and you earn a profit, you must report that and pay taxes. The same is true if you use crypto...
You have likely heard of the crypto winter. But what exactly does that mean, and what does it mean for your investments and taxes?
Crypto Airdrops and Taxes Whether or not an airdrop counts as a taxable event depends on the jurisdiction of where the token holder is living in. In the United States, crypto airdrops are considered income as part of one'sFederal income taxreturn.1 ...
Here are some of the countries that are leading the way for crypto regulation: Canada. The United States’ neighbor to the north regulates crypto trading platforms by requiring registration with provincial agencies. Crypto investment firms are classified money service businesses, and crypto is taxed ...
Why did I receive a 1099-K from my crypto exchange? Receiving a 1099-K from your crypto exchange means that you’ve engaged in transactions through the exchange that meet the IRS reporting threshold. This could include trading or selling crypto. For more detailed information on Form 1099-K ...
Building an investment portfolio may require personalization and finesse, but it can also be ultra-simple.
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Most cryptocurrencies are created via a process commonly referred to as cryptomining. With cryptomining, high-powered GPU systems are used to decrypt the cryptographic hash to create a new block. Each type of cryptocurrency has a finite number of blocks that can be mined. Over time, it become...