Bitcoin and cryptocurrency taxes in 2022: Everything you need to know
If you bought, sold or traded cryptocurrency in 2021, you may have questions about how it’s taxed. The IRS treats virtual currencies, like bitcoin and ether, differently from some other assets and investments, and there are specific rules you’ll need to follow if you sold or traded those assets last year. “The average investor needs to understand that cryptocurrency is not like any other type of currency out there. Cryptocurrency is treated as property for tax purposes,” says Shaun Hunley, a tax consultant at Thomson Reuters.