Crypto Taxes Explained in November 2023
Crypto taxes in the US can no longer be ignored. This guide on crypto tax explains everything you need to know in 2023....
- The IRS treats cryptocurrencies as property and taxes them like any other investment.
- US-based investors need to understand their crypto tax obligations.
- There are two forms of crypto tax: capital gains tax and crypto income tax.
- Capital gains tax applies to realized profits from selling cryptocurrencies.
- Crypto income is taxed like any other income stream.
- Strategies to minimize tax liabilities include crypto tax harvesting, long-term capital gains rates, gifting, and holding investments in an IRA.
- The IRS is cracking down on crypto tax evasion.
- Different products and services in the crypto space have different tax treatments.
- Selling cryptocurrencies triggers capital gains tax, with long-term rates applying after 12 months.
- Capital gains are realized as soon as cryptocurrencies are sold, not just when converted to fiat currency.
The article provides information and guidance on crypto tax obligations for US investors. It explains the different types of taxes, strategies to minimize tax liabilities, and the IRS's actions against tax evasion. The tone of the article is informative and neutral.