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How is crypto taxed?

Please consult a tax professional regarding your own tax circumstances. IRS forms Crypto can be taxed in two ways: either as income (a federal tax on the money you earned), or as a capital gain (a federal tax on the profits you made from selling certain assets).

Do crypto exchanges have to report to the IRS?

When required by the IRS, the crypto exchange or broker you use, including Coinbase, has to report certain types of activity directly to the IRS using specific forms and provide you with a copy. As a taxpayer, you’ll also need to report any taxable activities on these forms to the IRS on your tax return. 1099-MISC

What tax forms do I need to report crypto activity?

Reporting crypto activity can require a handful of crypto tax forms depending on the type of transaction and the type of account. You might need any of these crypto tax forms, including Form 1040, Schedule D, Form 8949, Schedule C, or Schedule SE to report your crypto activity. Form 1040 is the main form used to file your income taxes with the IRS.

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