Navigating DeFi Complexity: Demystifying Crypto Tax Burdens
Tax season can be daunting, especially when you're navigating the complexities of cryptocurrency. The digital asset landscape is constantly evolving, and understanding the tax implications of your crypto transactions is crucial to avoid penalties and stay compliant with tax laws. Whether you're a seasoned crypto trader or just starting out, this guide will provide a comprehensive overview of crypto tax, helping you navigate the process with confidence.
Understanding Crypto Tax Basics
What is Taxed in Crypto?
Generally, the IRS treats cryptocurrency as property, not currency. This means that general tax principles applicable to property transactions apply to crypto transactions. This includes gains and losses on selling, trading, and even using cryptocurrency.
Capital Gains: When you sell, ...