What is Crypto Tax? Are Cryptocurrencies Taxable?

**Heshani** · 01-31-2022, 12:27 PM

Hello Guys,

I heard that cryptocurrencies consider as property, so, they are taxable. This means, can cryptocurrencies be taxed in the same way as other assets? Guys, please share your knowledge regarding Crypto Taxes in the comments!

**NimeshHeshan** · 02-02-2022, 10:16 PM

Hi there,
I found a very good article from Coinbase blog.

From laser eyes to all-time-highs, 2021 was quite a year for cryptocurrencies. More than 10 percent of Americans traded crypto in the last year — if you're one of them, you're probably wondering how your trades and other crypto activity will impact your taxes.

U.S. taxpayers are required to report crypto sales, conversions, payments, and income to the IRS, and state tax authorities where applicable, and each of these transactions has different tax implications.

Do I owe crypto taxes?
In the U.S., crypto is considered a digital asset, and the IRS treats it generally like stocks, bonds, and other capital assets. Like these assets, the money you gain from crypto is taxed at different rates, either as capital gains or as income, depending on how you got your crypto and how long you held on to it.

To understand if you owe taxes, it’s important to look at how you used your crypto in 2021. Transactions that result in a tax are called taxable events. Those that don’t are called non-taxable events.

How much do I owe in crypto taxes?
So it looks like some of your crypto activity is taxable — what now? You can estimate how much you’ll owe in taxes by calculating your income, gains, and losses.

Anyway I think in Future World's economy, Crypto payments will be normal.

**Bhavya** · 02-09-2022, 12:14 PM

Originally Posted by NimeshHeshan

Hi there,
I found a very good article from Coinbase blog.

From laser eyes to all-time-highs, 2021 was quite a year for cryptocurrencies. More than 10 percent of Americans traded crypto in the last year — if you're one of them, you're probably wondering how your trades and other crypto activity will impact your taxes.

U.S. taxpayers are required to report crypto sales, conversions, payments, and income to the IRS, and state tax authorities where applicable, and each of these transactions has different tax implications.

Do I owe crypto taxes?
In the U.S., crypto is considered a digital asset, and the IRS treats it generally like stocks, bonds, and other capital assets. Like these assets, the money you gain from crypto is taxed at different rates, either as capital gains or as income, depending on how you got your crypto and how long you held on to it.

To understand if you owe taxes, it’s important to look at how you used your crypto in 2021. Transactions that result in a tax are called taxable events. Those that don’t are called non-taxable events.

How much do I owe in crypto taxes?
So it looks like some of your crypto activity is taxable — what now? You can estimate how much you’ll owe in taxes by calculating your income, gains, and losses.

Anyway I think in Future World's economy, Crypto payments will be normal.

Thank you so much for this detailed information about crypto taxes. Now I got some clear idea.