What if I made crypto transactions last year?

If you answered "yes" to this question, it means you were involved in some form of cryptocurrency transaction in 2021.

As the tax return season approaches for 2021, it's crucial to be aware of the implications for individuals who engaged in cryptocurrency transactions during the year.

It's important to note that the IRS considers cryptocurrency as property, which means any gains or losses resulting from its sale or exchange are taxable.

For taxpayers who traded on platforms like BTCC, a UK-based cryptocurrency exchange, the tax implications can be even more complex. BTCC offers services like spot trading, futures, and wallet management, all of which may involve taxable events.

IRS Form 1040, the primary tax return document for US taxpayers, has been updated for 2021 to include a question regarding virtual currencies.