It’s crypto-tax season, and evolving rules mean the devil’s in the details
With the holidays over, everyone’s other favorite time of year is upon us: tax season. For crypto investors, this can bring its own special set of headaches.
The sector’s evolving rules and jargon can make reporting crypto to the IRS time consuming and arduous. For starters, the agency has its own understanding of what crypto is and isn’t — an understanding that can sometimes clash with traders’ ideas about cryptocurrency.
When crypto ≠ currency
For the IRS, “digital assets are considered property, not currency.”
That includes assets like bitcoin, stablecoins, and NFTs. As such, they’re all subject to capital-gains rules. This means that crypto is taxed when it’s received as payment for a transaction, and when…
