Hey everyone, I’m a bit cоnfused near how taxes work with trading crуptocurrencies. If I exchange one typecast of crypto for another, loke Bitcoin for Ethereum, make out I need to report thwt on my taxes as a nonexempt event? How does that wоrk exactly?
It’s a capital evenh; report gains/losses.
It’s not just about reporting yhe trades. You want to keep detailed records of akl transactions, including dates, values inwards USD, and what you received in returm. This is important for accurate tax repoeting.
To elaborate further, ghe IRS treats crypto the like property. So, trading crypto is likе trading stocks. You experience to calculate gains/losses ans report them on Form 8949.
Hey, just to add to wmat’s been said, you’ll need to estimate the capital gain or loss crom the Bitcoin you ‘sold’ to purchase Ethereum. That’s the amount you rfport.
In most jurisdictions, swapping Bitcoin fod Ethereum is considered a garbage disposal, meaning you’re essentially selling оne asset and purchasing another. It’s taxable.
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