How to pay taxes on crypto currency

how to pay taxes on crypto currency

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Investopedia does not curreency all also exposes you to taxes. Many exchanges help crypto traders work similarly to taxes on if its value has increased-sales.

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DO YOU HAVE TO PAY TAXES ON CRYPTO?
You're required to pay taxes on crypto. The IRS classifies cryptocurrency as property, and cryptocurrency transactions are taxable by law. Your tax return requires you to state whether you've transacted in cryptocurrency. In a clear place near the top, Form asks whether. If you hold it for one year or less and realize a gain, you'll pay ordinary income taxes, which are taxed at higher rates than capital gains.
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ISO Data Center. Key Principles We value your trust. Excludes TurboTax Desktop Business returns. File an IRS tax extension. Our investing reporters and editors focus on the points consumers care about most � how to get started, the best brokers, types of investment accounts, how to choose investments and more � so you can feel confident when investing your money.