What is crypto tax & how does it work?

Learn the ins and outs of Crypto.com Tax to file returns and get an overview of the tax rules for the US, Canada, the UK, and Australia. Crypto tax refers to the taxation of cryptocurrency transactions, such as buying, selling, receiving, or exchanging cryptocurrencies like Bitcoin, Ethereum, or other digital assets.

Is cryptocurrency taxable?

In many countries, cryptocurrency is considered property for tax purposes; as such, capital gains from selling or trading cryptocurrency may be taxable. Crypto tax can vary depending on country of residence. Find a 5-step guide below for doing crypto taxes.

How much tax do I owe if I Sell my crypto?

They can be long-term or short-term, and how long you’ve held your crypto affects how much tax you’ll end up owing. If you held onto your crypto for more than a year before selling, you'll generally pay a lower rate than if you sold right away. Long-term gains are taxed at a reduced capital gains rate.

What are the penalties for cryptocurrency tax fraud?

The IRS can enforce a number of penalties for tax fraud, including criminal prosecution, five years in prison, and a fine of up to $250,000. Over the past several years, the IRS has aggressively cracked down on cryptocurrency tax compliance issues.