Decoding Cryptos DeFi Tax Maze: Yields And Liability
Figuring out cryptocurrency taxes can feel like navigating a complex maze. With constantly evolving regulations and diverse transaction types, understanding your tax obligations is crucial to avoid penalties and ensure compliance. This guide will break down the key aspects of crypto tax, providing you with the knowledge and resources to navigate this evolving landscape with confidence.
Understanding Crypto as Property for Tax Purposes
The first step in understanding crypto taxes is recognizing how the IRS classifies digital currencies. Unlike traditional currency, the IRS treats cryptocurrency as property. This classification has significant implications for how your crypto transactions are taxed.
What Does "Property" Mean for Crypto Taxes?
Capital Gains and Losses: Just like stocks or rea...