What is the tax implications of earning 1099-MISC income in the cryptocurrency industry?

1 answers

• Lane HessApr 19, 2022 · 3 years ago
  When it comes to earning 1099-MISC income in the cryptocurrency industry, the tax implications can be quite significant. The IRS treats cryptocurrency as property, which means that any income you earn from it is subject to capital gains tax. If you receive 1099-MISC income in the form of cryptocurrency, you will need to report it as income and pay taxes on the fair market value of the cryptocurrency at the time you received it. It's essential to keep meticulous records of your cryptocurrency transactions and seek professional advice to ensure you are fulfilling your tax obligations. Remember, failing to report cryptocurrency income can result in penalties and legal consequences.
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