Yes, Your Crypto Is Taxable. Here’s How to Report Cryptocurrency to the IRS in 2022
If you invested in crypto last year, you may be in for a rude awakening this tax season.
Yes, your Bitcoin, Ethereum, and other cryptocurrencies are taxable. The IRS considers cryptocurrency holdings to be “property” for tax purposes, which means your virtual currency is taxed in the same way as any other assets you own, like stocks or gold. And the start of tax season is right around the corner — Jan. 24, 2022 to be exact.
2021 was a big year for crypto, with many new investors buying in for the first time. More than half of current Bitcoin investors began investing in the last 12 months, according to a recent study by Grayscale Investments. The crypto market hit multiple all-time highs and lows throughout the year, leading to large gains and losses for many investors.
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