Litchfield, NH Resident Has Questions
It is important to keep in mind that profits from cryptocurrencies, including bitcoin and other digital coins, are taxed by the IRS. Just like a stock investment, cryptocurrency profits are subject to capital gains. This may be short-term capital gains if the crypto was owned for less than one year or long-term capital gains for investments exceeding one year. Similarly, any losses can offset other gains and lower the total amount that you pay in taxes.