For starters, if you didn’t know cryptocurrency is taxable, please read this .
Since it’s not officially...
For starters, if you didn’t know cryptocurrency is taxable, please read this.
Since it’s not officially issued by any country, the IRS doesn’t view cryptocurrencies (Bitcoin, Litecoin, etc.) as a currency. Instead, it’s seen as an asset, making the sale and exchange of cryptocurrency a taxable event.
That also means cryptocurrency can be subject to capital gains tax when used to make a purchase. The capital gains tax varies from zero percent to over 25 percent, based on a few variables like your taxable income and the types of items being bought/sold. If you want to see a more complete breakdown, this page on the IRS website talks about capital gains and losses.
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