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Did You Sell or Spend Bitcoin in 2020? Here's What You Need to Know About Taxes

Source: fool.com - Jan 11, 2021

While the IRS acknowledges that bitcoin and other cryptocurrencies can be used to pay for goods and services in many cases, and can be readily exchanged for U.S. currency, it treats it a bit differently than foreign currencies for tax purposes.

Specifically, the IRS classified bitcoin as property. This means it is treated the same as if you bought a piece of artwork and sold it for a profit, or if you sell a stock for more than you paid. If you bought, sold, spent, or even mined bitcoin in 2020, here's a primer on how it could affect your tax bill.

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Category: General Business