What are the tax implications of using Venmo for cryptocurrency payments?

1 answers

• Eason YaoJan 27, 2022 · 4 years ago
  Using Venmo for cryptocurrency payments can have tax implications. The IRS treats cryptocurrency as property, not currency, which means that any gains or losses from cryptocurrency transactions are subject to capital gains tax. This means that if you make a profit from selling or exchanging cryptocurrency on Venmo, you will need to report it on your tax return and pay taxes on the gains. It's important to keep accurate records of your cryptocurrency transactions on Venmo, including the date of the transaction, the amount of cryptocurrency involved, and the fair market value of the cryptocurrency at the time of the transaction. This information will be necessary when calculating your capital gains or losses for tax purposes.
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