Many cryptocurrency investors don’t realize that cryptocurrencies are defined by the IRS as an asset. Therefore, if you sell one at a profit, you need to pay taxes. The exact amount of tax liability depends on a few factors:
– the amount of gain you realized when you sell
– your total income
– how long you owned the cryptocurrency before you sold it
If you have cryptocurrency profits, seek guidance from a qualified tax professional and don’t ignore the fact that you owe taxes.