Are there any IRS regulations that apply to digital currency transactions between friends and family?

1 answers

• chetanand munbodhSep 08, 2024 · 10 months ago
  Digital currency transactions between friends and family are not exempt from IRS regulations. The IRS treats digital currency as property, and any gains or losses from its sale or exchange may be subject to taxes. This means that if you sell or exchange digital currency for a profit, you may need to report it as capital gains on your tax return. However, if you sell or exchange digital currency at a loss, you may be able to deduct the loss on your tax return. It's crucial to understand and comply with IRS regulations when engaging in digital currency transactions, even between friends and family.
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