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      • Are Personal Injury Settlements Taxable?
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      • Are Punitive Damages Taxable?
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      • How is Cryptocurrency Taxed?
      • What is the Capital Gains Rate for Cryptocurrency?
  • -Lexis Legal Advantage FAQ
    • +Appellate Law
    • +Intellectual Property
    • +Labor & Employment
    • +Legal Tech
    • +Litigation
    • -Tax Law
      • Are Personal Injury Settlements Taxable?
      • Are Punitive Damages Tax Deductible?
      • Are Punitive Damages Taxable?
      • Are Settlements Taxed?
      • Do You Pay Taxes on a Settlement?
      • How is Cryptocurrency Taxed?
      • What is the Capital Gains Rate for Cryptocurrency?

How is Cryptocurrency Taxed?

First off, it’s important to stress that yes, cryptocurrency exchanges are taxable. In fact, the IRS is pretty...

How is Cryptocurrency Taxed?

First off, it’s important to stress that yes, cryptocurrency exchanges are taxable. In fact, the IRS is pretty clear about the topic, and has released several notifications on the taxation of virtual currencies.

In short, the federal government views Bitcoin and related digital-only currency as taxable property under U.S. tax law. As such, whenever someone sells or exchanges the currencies, it’s technically a taxable event. The same holds true for any capital gains made though trading in cryptocurrencies.

Here's an in-depth cryptocurrency tax article with some helpful links that goes in further detail on the subject. 

Thinking of accepting cryptocurrency as payment for goods or services? You’ll want to read this cryptocurrency story too.

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