Crypto is on the IRS’s radar! If you bought, sold, mined, staked or were paid in digital assets like Bitcoin, Ethereum or NFTs, you must report it on your tax return. Near the top of your federal tax return, there’s a question asking if you received or disposed of any digital assets during the year. You must answer either “yes” or “no” and report any gains or losses. If you just hold assets or transfer them between wallets, you can answer “no.” But if you sell or convert, it’s a taxable event. Keep records of transactions, including fair market values and dates. If you receive a Form 1099 for crypto, keep in mind the IRS did too. Questions? Contact us. We’ll make sure you stay compliant.
