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Author: Admin | 2025-04-28
Notes! The IRS can ask later.In 2024, crypto use is growing fast. More than 25% of high-income people own crypto. Moving and trading crypto is common. The IRS wants to know every detail. By September 2024, the rules are even tighter. Imagine sending $15,000 in Bitcoin to a friend. You must tell the IRS.Why Cryptocurrency is Taxed DifferentlyCrypto is very different from normal things. It isn’t taxed like regular money. Here’s a quick comparison:Crypto AssetsTraditional AssetsTaxed when traded or soldTaxed when soldTracked by value changesOften taxed on profitsUse can trigger capital gainsOnly sales trigger taxesCrypto is special because its value changes fast. One day Bitcoin is worth $30,000, the next $28,000. This makes taxes a bit tricky. Imagine buying coffee with Bitcoin. You might need to pay taxes on that coffee! Crazy, right? So, you must track every crypto move.By September 2024, crypto’s fast-changing value is causing lots of tax questions. More than 60% of crypto owners use it for shopping. Each time, the IRS wants to know! So, keep track of all your crypto buys, sells, and trades—even if it’s just for coffee!Crypto changes in value fast. This makes taxes tricky. Unlike regular stocks, buying coffee with crypto can trigger a taxable event. So keep track of every transaction.Key Taxable Events in CryptocurrencyThere are specific moments when taxes apply:Trading crypto: Every trade is taxable. Even swapping Bitcoin for Ethereum triggers taxes. For example, if you traded 0.5 Bitcoin for 5 Ethereum in 2024, and Bitcoin’s price was $30,000 at
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