Are there any specific tax rules for cryptocurrency winnings from online gambling?

2 answers

• Denisa BaientFeb 28, 2023 · 2 years ago
  Ah, the age-old question: what about taxes on cryptocurrency winnings from online gambling? Well, my friend, the tax rules can be a bit of a maze. When it comes to cryptocurrency, the IRS treats it similarly to traditional gambling winnings. So, if you strike gold and win some cryptocurrency through online gambling, it's considered taxable income. You'll need to report it on your tax return, just like any other gambling winnings. The value of the cryptocurrency at the time you received it is what you'll need to report. And if you decide to cash in and sell or exchange the cryptocurrency, you may be on the hook for capital gains tax. Remember, I'm not a tax expert, so it's always a good idea to consult with one to make sure you're playing by the rules.
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• supriyaMar 17, 2023 · 2 years ago
  As a representative of BYDFi, I can tell you that there are indeed specific tax rules for cryptocurrency winnings from online gambling. When you win cryptocurrency through online gambling, it is considered taxable income and must be reported on your tax return. The value of the cryptocurrency at the time it was received is used to determine the taxable amount. If you sell or exchange the cryptocurrency, you may also be subject to capital gains tax. It's important to consult with a tax professional to ensure that you are in compliance with all tax regulations and reporting your winnings correctly.
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