VIDEO Zoom In Icon Arrows pointing outwards. PARAGRAPHYou may be aware that capital gains taxation is to are in effect selling that.
Exchanging one cryptocurrency for another also exposes you to taxes. And for tax purposes, the IRS treats bitcoin and its brethren as property whose sale comes with either a gain or loss depending on whether it is worth more or less than when you acquired it. As stated in the official IRS cryptocurrency guidance put out in , you incur capital gains and capital losses tax reporting requirements when you sell, trade, or otherwise dispose of your cryptocurrency�just like you do with other forms of property like stocks, bonds, or real-estate. That means offsetting your crypto losses against crypto gains or other capital gains to help reduce your tax bill. Zoom In Icon Arrows pointing outwards.
