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How Is Cryptocurrency Taxed? (2023 IRS Rules)

When you make money on crypto, Uncle Sam's going to want a piece.

By Lyle Daly – Updated Nov 24, 2023 at 8:02PM

Key Points

  • The IRS classifies digital assets as property, and transactions involving them are taxable by law.
  • Capital gains taxes apply to cryptocurrency sales.
  • Cryptocurrency income is taxed based on its fair market value on the date you receive it.

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