How do I pay taxes on cryptocurrency?
If you have made money from investing in cryptocurrency, you may be wondering how you will need to pay taxes on your earnings. Cryptocurrency is treated as property by the IRS, which means that capital gains taxes will apply. This means that if you have sold cryptocurrency for a profit, you will need to pay taxes on those profits.
In order to calculate your capital gains, you will need to know how much you paid for the cryptocurrency that you sold, as well as the price that you sold it for. You will then subtract your cost basis from your sales price to determine your capital gain. Capital gains taxes are typically charged at a rate of 15%, but this may vary depending on your tax bracket.
If you have made losses from selling cryptocurrency, you may be able to deduct these losses on your taxes. This can help to offset any capital gains that you may have made, and can potentially lower your overall tax bill.
Keep in mind that you will need to report any cryptocurrency earnings or losses on your tax return, so it is important to keep accurate records of all of your transactions. If you are not sure how to report your cryptocurrency taxes, you may want to speak to a tax professional.