How does the IRS treat cryptocurrency transactions conducted via PayPal friends and family when it comes to taxes?

3 answers

• Fresd WergertSep 14, 2020 · 6 years ago
  When it comes to cryptocurrency transactions conducted via PayPal friends and family, the IRS treats them as taxable events. This means that any gains made from these transactions are subject to capital gains tax. It's important to keep track of your transactions and report them accurately on your tax return to avoid any potential penalties or audits from the IRS. Remember, even if you're using PayPal friends and family, the IRS still expects you to report your cryptocurrency gains.
  487

  244
• AzizbekOct 18, 2020 · 6 years ago
  Alright, so here's the deal with the IRS and cryptocurrency transactions through PayPal friends and family. The IRS considers these transactions to be taxable events, just like any other cryptocurrency transaction. So, if you make a profit from selling or exchanging cryptocurrency through PayPal friends and family, you'll need to report it on your tax return and pay any applicable taxes. Don't try to hide your gains, because the IRS has been cracking down on cryptocurrency tax evasion. Stay on the right side of the law and report your earnings properly.
  559

  187
• Alexis ClercBeaufortApr 27, 2023 · 3 years ago
  As an expert in the field, I can tell you that the IRS treats cryptocurrency transactions conducted via PayPal friends and family the same way they treat any other cryptocurrency transaction. That means if you make a profit from these transactions, you'll need to report it on your tax return and pay taxes on the gains. It's important to keep accurate records of your transactions and consult with a tax professional if you have any questions or concerns. Remember, the IRS has been increasing its focus on cryptocurrency tax compliance, so it's best to stay in their good graces by following the rules.
  604

  151