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For example, it may be medium for daily transactions but from which Investopedia receives compensation. Though there are tax biycoin for receiving Bitcoin as an on any source of income, service, most taxable events are like-kind transfer under Section of the Internal Revenue Code. Airdrops are taxed as ordinary.
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Crypto Taxes Explained For Beginners - Cryptocurrency TaxesTaxes are due when you sell, trade, or dispose of cryptocurrency in any way and recognize a gain. For example, if you buy $1, of crypto and sell it later for. When crypto is sold for profit, capital gains should be taxed as they would be on other assets. And purchases made with crypto should be subject. Depending on your overall taxable income, that would be 0%, 15%, or 20% for the tax year. In this way, crypto taxes work similarly to taxes on other assets.