Crypto Tax and Records

Cryptocurrency Taxation and Record-Keeping Requirements

1. Cryptocurrency as Property for Tax Purposes

In many countries, including the United States, cryptocurrencies are treated as property rather than currency. This classification has significant tax implications:

1. Capital Assets: Just like stocks or real estate, cryptocurrencies are considered capital assets. When you dispose of a cryptocurrency, whether by selling it, trading it for another cryptocurrency, or using it to buy something, you may have a capital gain or loss that must be reported.