How does the IRS treat forex trading profits from cryptocurrency investments in the USA?

3 answers

• Tarakeshwari S NNov 24, 2020 · 5 years ago
  According to the IRS, profits from forex trading with cryptocurrencies are subject to taxation in the USA. The IRS treats cryptocurrencies as property, so any gains or losses from trading them are considered capital gains or losses. This means that if you make a profit from forex trading with cryptocurrencies, you will need to report it on your tax return and pay taxes on the amount. The tax rate will depend on your income level and the holding period of the cryptocurrency. It's important to keep accurate records of your trades and consult with a tax professional to ensure compliance with IRS regulations.
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• Jesus Z.Apr 11, 2023 · 2 years ago
  Hey there! So, when it comes to forex trading profits from cryptocurrencies in the USA, the IRS treats them as capital gains or losses. This means that if you make money from trading cryptocurrencies, you'll have to report it on your tax return and pay taxes on the profits. The tax rate will depend on your income level and how long you held the cryptocurrencies. It's always a good idea to keep track of your trades and consult with a tax expert to make sure you're following the IRS guidelines. Happy trading!
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• Magu StoproMar 11, 2023 · 2 years ago
  According to the IRS, profits from forex trading with cryptocurrencies are treated as capital gains or losses. This means that if you make money from trading cryptocurrencies, you'll need to report it on your tax return. The tax rate will depend on your income level and how long you held the cryptocurrencies. It's important to note that the IRS has been cracking down on cryptocurrency tax evasion, so it's crucial to accurately report your profits and losses. If you have any doubts or questions, it's always a good idea to seek professional advice from a tax expert. Remember, it's better to be safe than sorry!
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