Bitcoin and taxes: what to know if you traded cryptocurrency in 2021

The video explains how the IRS treats cryptocurrencies like Bitcoin and Ether as capital assets, similar to stocks or bonds. It covers the tax implications of buying, selling, and using crypto, emphasizing the need to report transactions on tax returns. The video also details how to calculate taxes based on the duration of ownership and the value change of the crypto. Additionally, it highlights the importance of keeping detailed records and understanding the IRS's increasing focus on crypto transactions.

How does the IRS classify virtual currencies like Bitcoin?

What must you report on your tax returns if you cashed out your crypto?

What factors determine how much tax you owe when selling crypto?

What is the tax implication if you sold your crypto for less than you bought it?

What records do you need to keep for calculating your crypto taxes?