1. Classification of Cryptocurrency for Tax Purposes
Cryptocurrencies are treated as property by many tax authorities, including the IRS in the United States. This classification has a broad range of implications:
Capital Gains: Just like with stocks or real estate, buying and selling cryptocurrency can trigger capital gains taxes.
Estate Inclusion: For estate tax purposes, the fair market value of the cryptocurrency at the time of the owner's death is included in the estate's total value.
