How To Report Cryptocurrency On Taxes. The dramatic highs and lows of bitcoin and the outright explosion of cryptocurrencies over the past year has a lot of traders and enthusiasts wondering how to report cryptocurrency on taxes. How do cryptocurrency taxes work?

To report cryptocurrency on your tax return, you first need to check yes to the question:

You'll need to report your cryptocurrency if you sold, exchanged, spent or converted it. Review irs tax guidance related to individual and business transactions using virtual currencies, such as bitcoins or other similar currencies. How to report crypto on your tax return the form 8949 for cryptocurrency tax reporting how to pay taxes on cryptocurrency To report all of your capital gains and losses, you need to complete irs form 8949. The irs takes the reporting of cryptocurrency very seriously. You'll need to report your cryptocurrency if you sold, exchanged, spent or converted it. In 2014, the irs issued a notice declaring. Cryptocurrency is treated as property, not currency, for tax purposes. It asks whether you've received, sold, sent, exchanged or otherwise acquired a financial. Cryptocurrency trades may not be as private as some might think. However, there is now specific guidance on how to report income from cryptocurrency.