Cryptocurrency is typically treated as property by tax authorities, which means that transactions involving cryptocurrency may be subject to capital gains tax. This includes buying, selling, trading, and mining cryptocurrency. Additionally, if you receive cryptocurrency as payment for goods or services, the fair market value of the cryptocurrency at the time of receipt is considered taxable income. It's important to keep detailed records of all cryptocurrency transactions to accurately report them on your tax return. It's advisable to consult with a tax professional or accountant for guidance on how to properly report cryptocurrency transactions on your tax return.
