How Is Cryptocurrency Taxed. Irs guidance clarifies that cryptocurrencies are taxed as property. Sell bitcoin, trade ether, use litecoin to pay for a mining rig, etc.) you are subject to capital gains or losses.

This means that cryptocurrency is taxed as a capital asset and every taxable event must be reported on an irs 8949 cryptocurrency tax form.

In other words, you need to know how much it cost you to open the trade in order to calculate the profit or loss when you close the trade, including any fees, commissions. Cryptocurrencies have only grown since then. How do crypto taxes work in the us? And similarly in other countries, crypto is reported not unlike stock sales. This means that you are liable for income taxes on the usd value of the claimed airdrop. Tax treatment of cryptocurrency for income tax purposes. Everything you need to know. Determining how much profit you've made and how much you're liable for in taxes is a bit complicated. Unless you live in malta or puerto rico or another similar country where cryptocurrency gains aren't taxed at the moment, you'll soon be trying to figure out how to. Learn how and where to file your cryptocurrency taxes with our guide. Cryptocurrency received from an airdrop is taxed as income.