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Tag Archive for Cryptocurrency And NFTs

Cryptocurrency And NFT Taxation For U.S. Expats

Cryptocurrency And NFT Taxation For U.S. Expats

The United States Internal Revenue Service (IRS) does not recognize cryptocurrency as currency for federal income tax reporting purposes. However, it does recognize certain types of virtual currencies as property for capital gains and losses. If you are an American citizen living abroad and hold crypto assets, whether those assets are purchased directly or indirectly, you must report them on Form 8949, Sales and other Dispositions of Capital Assets.

MetamaskIn addition, if you trade digital currencies for profit, you must pay taxes on the gain or loss. You must determine what type of cryptocurrency you sold, and use the appropriate form to report the sale. For example, if you bought bitcoin in 2017 and sold it today for $10,000, you must report the transaction on Form 8949, Schedule D, Capital Gains and Losses.

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