Tuesday February 22, 2022 – What better time to discuss how cryptocurrency is taxed then tax season – before there is a problem. While we have talked about taxing crypto many times – this little refresher won’t hurt.
First, remember, cryptocurrency is not treated like fiat currency (government issued currency) – it’s treated like property; like stocks.
Simply buying Crypto is not a taxable event – it becomes a taxable event when you sell, trade or convert it. In addition, if you receive crypto as payment for goods or services it is taxed as income.
Crypto also has some unique features – like mining, hard forks, or air drops. How do you handle those on your tax return?
Attorney Steven A. Leahy reviews the Crypto tax rules, and what you need to know this tax season.
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649