How is Cryptocurrency Taxed? Here’s a Detailed Guide | by LBank Exchange | LBank | Dec, 2022

From the LBank blog.

How is Cryptocurrency Taxed? Here’s a Detailed Guide
  • Selling crypto for cash: Selling your crypto assets for fiat currencies will most likely incur tax. If you make a profit from the sale, you’ll owe taxes. In contrast, you can deduct that loss on your taxes if you sell at a loss.
  • Converting one crypto to another: Exchanging Ethereum for Bitcoin, for example, attracts crypto tax. Since it’s a sale, the IRS sees it as a taxable event.
  • Mining cryptocurrency: Since miners are rewarded for solving cryptographic hash functions to validate transactions, they are taxed. As a miner, it’s considered a taxable event if you profit from adding cryptocurrency transactions to a blockchain.
  • Spending crypto on goods: If you purchase goods such as fashion wear or foods, for example, with cryptocurrencies, you’ll likely incur taxes on the transaction.

This article came directly from the LBank blog, found on—-69b5b1a654b1—4

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