The world of cryptocurrency is exciting, but when tax season rolls around, it can become an arduous task, especially in the U.S. As digital assets evolve to mainstream finance, American regulators have stepped up their oversight. Today, four key agencies oversee different aspects of the crypto space, such as the IRS, SEC, CFTC, and FinCEN, playing a pivotal role in regulating the digital assets for investors, traders, and developers. This article will bring you insights on how crypto is taxed, regulated, and reported in the U.S., with clear explanations and practical tips for staying compliant.
Table of contents
- How the IRS Handle?
- Capital Gains Tax
- Crypto as Income Tax
- How to Calculate and Report Crypto Taxes
- How Does the SEC Handle?
- How Does the CFTC Handle?
- How Does the FinCEN Handle?
- What is the Role of the Federal Reserve Here?
- Conclusion
How the IRS Handle?
Since 2014, the Internal Revenue Service (IRS) has treated cryptocurrencies like Bitcoin, Ethereum, and Solana as property rather than currency. This means that any time you sell, trade, or use crypto, it can trigger capital gains or income tax.
Capital Gains Tax
When you sell or exchange crypto, you must ca…
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