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Crypto Tax and Records

Cryptocurrency Taxation and Record-Keeping Requirements

coinflask_writer
Jul 24, 2024
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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.

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