Tag: Decoding DeFi Tax:

Navigating the world of cryptocurrency can be exciting, but understanding the tax implications of your digital assets is crucial for staying compliant and avoiding potential penalties. Crypto tax can seem complex, but breaking it down into manageable parts makes the process less daunting. This guide will help you understand the key aspects of crypto tax, from determining taxable events to calculating your gains and losses. Understanding Crypto as Property Crypto Is Not Currency (Yet) for Tax Purposes The IRS classifies cryptocurrency as property, not currency. This classification is vital because it dictates how crypto transactions are taxed. Similar to stocks or real estate, when you sell, trade, or otherwise dispose of your crypto, you're subject to capital gains or losses.For more detai...