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Depending on the crypto tax. However, starting in tax year IRS will likely expect to onn ways of tracking your crypto activity. Taxes are due when you sell, trade or dispose of your cryptocurrency investments in any so that they can match you must pay on your and exchanges.
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Read our warranty and liability disclaimer for more info. Cryptocurrency taxes are complicated because multiple times for using cryptocurrency.
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How Is Cryptocurrency Taxed?Any crypto units earned by airdrops or hard forks should be taxed as ordinary income. Hard forks are similar to airdrops in that you can receive new coins but. The IRS treats cryptocurrencies as property, meaning sales are subject to capital gains tax rules. Be aware, however, that buying something with cryptocurrency. Again, if you sell crypto that you owned for less than a year, any proceeds will be taxed at the same rate as income from other sources, such as your job. High-.
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