BizBoost News
Volume 11, Issue 5
For distribution 8/23/21; publication 8/26/21

Are Gains on Cryptocurrency Taxable?

The short answer to this question is: of course!  As cryptocurrency has become a more popular investment vehicle among younger investors, this is a good question and one that is getting more attention from the IRS. 

Buying and selling crypto, just like buying and selling a share of Tesla, is taxed as a capital gain.  The capital gain holding periods apply as well.  Keeping track of the gain or loss from crypto trading is easy if you are using a broker like Robinhood, which will issue you a Form 1099-B (Proceeds from Broker and Barter Exchanges). 

However, if you use Coinbase or another crypto exchange, you will need to track the gains and losses on your own.  Coinbase and Gemini are not brokers and will not issue a 1099-B.  This means that you will need to keep track of the following:

This can get hairy if you are buying and selling pretty frequently, but it is taxable income and you are required to report it on your tax return.

What happens if you see a great deal on patio furniture at Overstock and purchase it with crypto?  You will have a reportable gain or loss most likely.  Currently, the IRS considers using crypto for purchases to be effectively selling the currency. 

So, keep in mind that when investing or using crypto as currency, you need to keep track of the gains and losses for your tax return.  The IRS is cracking down on these types of transactions, and you do not want anything to come back and bite you later!

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As cryptocurrency has become a more popular investment vehicle among younger investors, wondering whether gains are taxable is a good question and one that is getting more attention from the IRS. Learn more in our latest blog: [link]

Are gains on cryptocurrency taxable? The short answer to this question is: of course! Learn more about taxes on cryptocurrency in our latest blog article: [link]  

Business Tip: When investing or using crypto as currency, you need to keep track of the gains and losses for your tax return. The IRS is cracking down on these types of transactions, and you do not want anything to come back and bite you later! Learn more about cryptocurrency taxes here:    [link]

Do you currently use cryptocurrency? With its popularity growing, understanding the tax implications of cryptocurrency is important in order to avoid problems with the IRS. Sign up for our newsletter to learn more about cryptocurrency taxes: [link]

DID YOU KNOW… you might have to keep track of your own cryptocurrency taxes depending on what platform you use. For example, Robinhood will issue you Form 1099-B for your tax return. However, if you use Coinbase or another crypto exchange, they will not issue you a Form 1099-B, so you will need to track the gains and losses on your own. Learn more here: [link]

Currently, the IRS considers using cryptocurrency for purchases to be effectively selling the currency. Therefore, you’ll need to make sure you understand the taxes surrounding your cryptocurrency. Learn more in our latest blog article:   [link]

Taxes regarding cryptocurrency can be a bit confusing. Buying and selling crypto, just like buying and selling a share of Tesla, is taxed as a capital gain.  The capital gain holding periods apply as well. Find out more here: [link]

Cryptocurrency is becoming more and more popular. As the popularity grows, so does the IRS scrutiny surrounding cryptocurrency taxes. If you buy and sell with crypto, you’ll want to make sure you understand the tax implications. Learn more about cryptocurrency taxes in our latest blog article: [link]